The Shanghai and Shenzhen stock exchanges has been on tear in 2020. The flood of government stimulus and return of retail investors in China has driven index past its previous cyclical high.
CSI 300 index represent the 300 largest and mid sized companies listed on the Mainland Shenzhen and Shanghai exchanges. Investors is confident that the Chinese government has managed to get Covid under control and look to pile into back into the market.
Similar to broader market indexes some of the best performing index funds of 2020 are markets which are resilient in the face of Covid.
The market is now in rallying mode and it is putting in the biggest rise since the last peak in 2015.
CSI 300 Index Chart
CSI 300 Index Constituents
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The financial sector makes up the largest exposure in the index
CSI 300 Index ETF
The Chinese financial system is famously a closed loop system from capital flow perspective but the Hong Kong China connect has enabled partial capital flow which allowed offshore investors buying into Chinese stocks.
Exchange traded fund managers like Blackrock were able to create a market tracker after the HK-China connect was opened in 2007 and as a result a passive which which is a crucial tool in index investing exist to replicate the performance of the index.
iShares Core CSI 300 ETF (2846.HK / 82846.HK / 9846.HK)
The same index is priced in Hong Kong dollars (2846.HK), RMB (82846.HK) and USD (9846.HK) which is designed to appeal to as many investors as possible.
Key ETF Facts
- Distributions are made annually.
- 0.38% management fee