ASHR: CSI 300 ETF is hard to describe in a few words.

There are many indices in the A-share market that reflect market conditions. For example, the SSE 50 reflects large enterprises, the STAR 50 reflects outstanding companies on the STAR Market, and the CSI 300 and CSI 500 reflect the performance of leading and mid-cap companies, respectively.

In many cases, the SSE Composite Index alone can genuinely reflect the overall market situation because, in its compilation process, bank stocks and large state-owned enterprises are given too much weight. In comparison, indices like the Wind All A and CSI 300 provide more effective feedback on the market.

The CSI 300 Index tracked by ASHR covers the 300 largest and most actively traded stocks in the A-share market.

Among these, the "King of A-shares"—Kweichow Moutai—is indispensable.

This situation is somewhat unique globally. In overseas markets, it is rare for liquor companies or pure consumer goods companies to become the market's top-valued stock. Whether it's Diageo or LVMH, it's hard for them to dominate their markets with a single product. Even considering that Kweichow Moutai represents a significant portion of China's liquor industry, its current market value is still astonishing.

However, because the A-share market lacks such high-quality stocks that can maintain stable growth and a strong moat year after year, companies like Kweichow Moutai and Imeik Technology easily command high valuations. Even if similar stocks exist, they are mostly large state-owned enterprises, making it difficult to justify higher valuations.

The second-largest holding is the new energy giant CATL. Contemporary Amperex Technology Co. Limited (CATL) has seen rapid growth in recent years, which is evident to the market. In the era of new energy, whether it's wind, solar, storage, or electric vehicles, battery technology is indispensable. Therefore, CATL's technological and market advantages are very clear. However, in the past period, CATL's valuation has been challenged by China Shenhua Energy. Coincidentally, in the U.S. stock market, ExxonMobil's market value has also surpassed Tesla. In the global re-evaluation of the new energy industry, CATL may still need some time to consolidate.

Next is the home appliance giant Midea Group. Midea has successfully diversified its business, evolving from a white goods giant to a company with a presence in white goods, small appliances, industrial robots, and more. In 2021, the company's market value reached a peak, though it has since adjusted significantly.

Interestingly, the most heavily held commercial bank in ASHR is not the "Universe Bank" (ICBC) but China Merchants Bank. As the best-performing national commercial bank in China, China Merchants Bank has indeed demonstrated superior competitiveness in recent years.

Another important holding in ASHR is China Yangtze Power. To be honest, over a longer time horizon, China Yangtze Power might be the most promising company among the top ten holdings. As a stable "money printer," the company has passed the peak of capital expenditures and depreciation. For many years to come, it will generate stable income and profits, making it a model of long-term value stocks.

More importantly, China Yangtze Power's revenue and profits are not significantly affected by macroeconomic fluctuations, something that cyclical stocks like CATL can only envy.

Beyond fundamental factors, the biggest influences on the CSI 300 are China's macroeconomic conditions and the impact of international political and economic situations on companies.

It can be said that in various international geopolitical conflicts, China's A-share market suffers the most. This is quite painful.

Policy instability and high market volatility are the biggest challenges for ASHR. However, many investors in the secondary market use it as a substitute for stock index futures trading, which is also a way to seek profits indirectly.$Xtrk Hrvt Csi 300 Chn(ASHR.US)