---
title: "Want to stay calm in a volatile market? Check out some quality insights"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280387874.md"
description: "In a volatile market, the CSI 300 Quality Index (932431.CSI) has performed exceptionally well, outperforming the CSI 300 Index by 37 percentage points over the past decade. Since the beginning of this year, the index has also outperformed by 1.1 percentage points. Its compilation logic is based on return on equity (ROE), considering profitability stability and quality, selecting 50 high-performing stocks. The dividend yield of the CSI 300 Quality Index is 3.53%, higher than that of mainstream broad-based indices, and most constituent stocks offer dividends. In a turbulent market, investors may consider positioning in this index"
datetime: "2026-03-25T00:31:36.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280387874.md)
  - [en](https://longbridge.com/en/news/280387874.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280387874.md)
---

# Want to stay calm in a volatile market? Check out some quality insights

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/O3g9Co375Hu931KUJgMbxvqdGtQ2e4xXp7Dcm5cfCU9KoAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

"When others are fearful, I am greedy; when others are greedy, I am fearful." — Warren Buffett

Since the beginning of this year, the A-share market has experienced significant fluctuations. On March 23, the CSI 300 fell by -3.26%, with nearly 5,200 stocks closing down; on March 24, the market rebounded again, with the CSI 300 rising by 1.28%. Should we stay or leave the equity market now? **Instead of worrying about the next market trend and opportunities, let's take a look at the "quality" selection of equity allocation in a volatile market — the CSI 300 Quality Index (932431.CSI)**, which has outperformed the CSI 300 Index by 37 percentage points over the past decade and by 1.1 percentage points this year. (Data source: Wind, as of 2026/3/24)

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/Op3QnIn8Gq9xu7rsKunqXQLqASPP2CKpI_JNlC5zbtny8AA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Note: Data source: Wind, historical performance of the index is for reference only and does not represent future trends.

**CSI 300 Quality Index,**

**Why can it stand out in a volatile market?**

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OJUBkxRF1CAHZVFU--79sKihKBR2-vsEyD3x1-72j-FN8AA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

**Quality selection based on profitability**

Warren Buffett once said, "If I could only use one indicator to select stocks, I would choose ROE."

Return on Equity (ROE) can comprehensively assess a company's profitability and its ability to "make money with shareholders' money." **The compilation logic of the CSI 300 Quality Index goes further on the basis of ROE, incorporating the stability and quality of earnings of listed companies, selecting 50 true "profitability stars" from the constituents of the CSI 300 Index.**

Top ten constituent stocks of the CSI 300 Quality Index

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OKoVvemtfBM2iZ1gfDIkEqY5wd3k_Vhyt-SZQP1Pej-UcAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Data source: China Securities Index Company, Wind, as of 2026/1/31. Industry classification is based on Shenwan's first-level industry. Stocks highlighted in blue appear in both the top ten constituent stocks of the CSI 300 Quality Index and the CSI 300 Index.

**Constituent stocks focus on dividend quality**

Wind data shows that the CSI 300 Quality Index has a dividend yield of 3.53% over the past 12 months, significantly higher than mainstream broad-based indices. In 2025, 49 out of 50 constituent stocks announced dividends, with a total of 95 cash dividend distributions during the year ![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/ORPpcRgd9PX5jpcOF69YPb_xSmDfagDcEF0c8zW78ggsMAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Note: Data source from Wind, the dividend yield for the past 12 months as of 2026/3/24. The historical performance of the index is for reference only and does not represent future trends.

**Is it time to position?**

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OH8j3NkrggmWaVJ2T5dIWGYaRCZgT5GmnB8rXFCw3s1QsAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

**Moderate levels: High historical backtest win rate**

With the market experiencing severe fluctuations, the CSI 300 Quality Index has dropped from 2076 points at the beginning of the year to 2000 points as of 3/24.

Historical backtesting data shows that buying the CSI 300 Quality Index below 2000 points and holding it for a full year has a **positive return probability of over 82%**.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OLCbcZJQQEkooTT9cC3gaNIxBhcGbPbD7xixxhla6viuAAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Note: Data range from 2016/3/23 to 2025/3/21, to allow for buying and holding for one year until the latest complete annual return. Data source from Wind, the historical performance of the index is for reference only and does not represent future trends.

**Valuation is reasonable: Positioned at about the 17% percentile since 2015**

As of 3/24, the CSI 300 Quality Index has a **price-to-earnings ratio of 10.26 times**, positioned at the **17.46%** historical low percentile since 2015, providing a high cost-performance ratio compared to other mainstream market indices.

CSI 300 Quality Index price-to-earnings ratio and percentile

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OwI9Fhl9p8C0uWFdOGurn3WMAW298DUJcTDk-EBWFXlPcAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Note: Data as of 2026/3/24, percentile range from 2015/1/1 to 2026/3/24, source from Wind, the historical performance of the index is for reference only and does not represent future trends.

**Outstanding cost-performance ratio: Better returns under the same drawdown tolerance**

Over the past decade, the CSI 300 Quality Index has an **annualized Sharpe ratio of about 0.41**, significantly better than the CSI 300 Index's 0.25, and notably superior to other mainstream broad-based indices, highlighting its investment cost-performance ratio.

Scatter plot of annualized returns/annualized volatility of the index over the past decade

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OQhNIssO1VtdZOtczcHXmcJOnT3_rwhA1Q1CU7Sr8LkNYAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Note: The data range is from 2016/3/24 to 2026/3/24, sourced from Wind. The historical performance of the index is for reference only and does not represent future trends.

**Style Reversion: Core Assets May Enter a Reversal Period**

As the fundamentals gradually recover, the valuation of core assets may enter a reversal period. The market style is gradually shifting from "theme speculation" back to "fundamental value," with the allocation of quality factors becoming increasingly prominent. As liquidity gradually tightens, high-quality companies that can continuously generate cash flow and possess deep moats will become a "safe haven" for funds. **The CSI 300 Quality Index not only serves as a secondary refinement of core assets but also provides investors with a "simple and effective" long-term investment path—no need to chase hot spots, no need for frequent trading, just anchor on "profit quality," and there is hope to steadily accumulate wealth amidst cyclical fluctuations.**

Aegon-Industrial CSI 300 Quality ETF (code 563960), a "quality" investment and cost-effective choice in a volatile market, is the first CSI 300 Quality ETF in the entire market, accompanying your confidence～

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