The Changsheng China Securities 100 Index Fund, the first of its kind to track China Securities 100 Index, was successfully raised on November 16, 2006, collecting over RMB4 billion.
China Securities 100 Index, released officially by China Securities Index Co., Ltd. on May 29, 2006, selected 100 largest constituents from Shanghai Shenzhen 300 Index as showwindows for the overall situation of the most influential leading companies of large market capitalization on the Shanghai and Shenzhen Stock Exchanges. With moderate constituents, active trading, good liquidity and large size, China Securities 100 Index was taken as the ideal underlying for indexation investment by many fund companies upon its introduction.
China Securities 100 Index advocates value investing due to its blue-chip featured constituents of high profitability, continuable growth, large market value and low price-earnings ratio. Changsheng China Securities 100 Index Fund invests in constituents and candidate constituents of China Securities 100 Index. Under the stable and rapid development of China's economy, China Securities 100 Index constituents usually enjoy a much higher profitability and continuable growth than other enterprises of the same industry. Therefore, it is a better way to share the fruits of the rapid economic growth by investment in Changsheng China Securities 100 Index Fund.
Along with the spot market, Shanghai Shenzhen 300 Stock Index Futures, to be listed soon, will accelerate the development of each other. The liquidity of the spot market will be improved and the stock market, especially the large blue chips, will further be promoted to its prosperity. China Securities 100 Index selects 100 companies with largest market value from Shanghai Shenzhen 300 Index. Although its stocks only account for 1/3 of those of Shanghai Shenzhen 300 Index, its total market value, profit and dividend account for 82.93%, 79.42% and over 80% respectively. Moreover, with the track error of only 0.25% from Shanghai Shenzhen 300 Index and the price correlation coefficient of 99.68?, China Securities 100 Index enjoys a very high compatibility with Shanghai Shenzhen 300 Index. Thus, a good operational function of hedging and arbitrage will contribute to making Changsheng China Securities 100 Index Fund more attractive.
