Small- and mid-cap growth names are on fire — CSOP CSI 500 ETF (03005.HK) is bucking the weak market and moving higher! Constituent Xinyuan Micro has exploded 36% in just two sessions.

NewSpace – 19 Jan: Short-term sentiment heats up again; the SM-cap style is outperforming. X Southern CSI 500 (03005.HK) defies the weak tape, up more than 1%. The underlying gauge’s mid-/small-caps are showing plenty of beta in this liquidity-driven leg.

HKEX data show 03005.HK tracks the CSI 500, which owns the 500 largest A-shares after the CSI 300 is removed. Covering New-Economy heavy-weights—healthcare, electronics, power equipment, defence and IT—the index’s median cap is ~RMB 20 bn and is viewed as “China’s mid-cap growth benchmark”.

Currently 91% of constituents are above RMB 20 bn. Electronics has risen from 11.65% at end-2024 to 16.54% today, thanks to the AI boom funnelling more high-tech names into the pool.

Kaiyuan Securities (report dated 11 Jan 2026) argues that with fundamentals only gently recovering and liquidity still loose, SM-caps remain in a sweet spot. Aggregate cap keeps expanding while valuations climb at a modest pace, leaving SM-caps with less drag than mega-caps and breaking the usual “December-January under-performance” calendar effect. If risk appetite and liquidity stay supportive, the mid-/small-cap complex should continue to deliver outsized return elasticity.