A500 Index Drops 1.02% Amid Trading Volume Decline

The A500 Index, a key benchmark for the Chinese stock market, experienced a collective decline this week, falling by 1.02% to close at 4503.46 points. This downturn was accompanied by a significant decrease in daily average trading volume, which dropped by 9.6% compared to the previous week. The total market capitalization of the 33 funds tracking the A500 Index also saw a reduction, with the overall scale decreasing by 2.7 billion shares.

Among the funds, the Bank of Communications Ansheng Fund recorded the most substantial decline. The total assets under management for these 33 funds stood at 2067.77 billion yuan. The top three funds by size were Guotai Fund, Guangfa Fund, and Nanfang Fund, with assets of 202.5 billion yuan, 180.84 billion yuan, and 167.32 billion yuan, respectively.

Analysts noted that the state-owned investment entities primarily hold financial stocks and core broad-based ETFs. As of the end of the first quarter of 2025, the market value of stocks held by these entities was approximately 3.89 trillion yuan. By the end of 2024, the scale of ETF holdings was around 1.06 trillion yuan.

The liquidity environment has been improving, driven by continuous policy support and accommodative monetary policies. This has led to an overall enhancement in market liquidity, with a notable increase in the trading volume of both exchanges. The scale of margin financing has remained high, and as the effects of related policy measures become more apparent, it is expected that more incremental funds will flow into the A-share market in 2025.