CSOP CSI 500 ETF (03005.HK) gapped higher and kept climbing, up over 2%, as constituent Xinyuan Micro soared 36% in just two sessions.

NewTimeSpace News – 9 January:Short-term sentiment flared again as mid-and-small-caps outperformed; CSOP CSI 500 ETF (03005.HK) gapped higher and extended gains to more than 2%. Newly added index constituent Xinyuan Micro has rocketed 36% in two days.

HKEX data show the ETF tracks the CSI 500 index, which owns the 500 largest A-shares after the CSI 300 is excluded. With a median market cap near RMB 20 billion, the gauge spans pharmaceuticals, electronics, power equipment, defence and IT—China’s default mid-cap growth benchmark.

Roughly 91% of current constituents are valued above RMB 20 billion. Electronics, power gear and healthcare dominate the weightings. The AI boom has quietly tilted the index toward new-economy names: electronics’ share has risen from 11.65% at end-2024 to 16.54% today.

Looking to 2026, UBS argues Chinese assets are far from “overheated” and sees tech innovation—especially AI—as the core earnings driver. The bank forecasts MSCI China earnings growth of 14% or more, led by internet platforms, advanced manufacturers and globally expanding “going-out” champions. A potential shift of household savings into equities and steady policy support should add long-term fuel.

With China’s equity market capitalised at ~USD 20 trn and household deposits at USD 23 trn—versus USD 70 trn/USD 14 trn in the US—“as better-educated young investors emerge, that USD 23 trn will gradually flow into stocks,” UBS says.
(Source: UBS strategy outlook “China Equity Strategy 2026”, 17 Nov 2025)

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