The ChiNext Board supports the deep integration of traditional entrepreneurship with new technologies, industries, business models, and modes of innovation. It is anchored by nine strategic emerging industries, covering high-tech enterprises with outstanding innovation capabilities in key areas such as advanced manufacturing, the digital economy, and green low-carbon development.

So, what are the differences and characteristics between the ChiNext Index and the ChiNext MidCap 200 Index? What is their investment value? This article will provide a detailed analysis.

Market Capitalization Stratification: Large-Cap vs. Mid-Small-Cap

According to Wind data, as of March 29, 2024, the average market capitalization of the ChiNext Index constituents was 47.4 billion yuan, leaning toward a large-cap style. In contrast, the ChiNext MidCap 200 Index had an average market capitalization of 9.2 billion yuan, reflecting a mid-small-cap style, creating a clear stratification in market capitalization.

The ChiNext Index selects the top 100 stocks on the ChiNext Board with the largest market capitalization and high liquidity. As of March 29, stocks with a market capitalization above 50 billion yuan accounted for nearly 60% of the index's weight, while those above 100 billion yuan collectively represented over 50%.

On the other hand, the ChiNext MidCap 200 Index primarily covers mid-small-cap stocks. Its selection excludes constituents of the ChiNext Index and instead picks 200 stocks with moderate market capitalization and good liquidity, forming a complementary relationship with the ChiNext Index. As of March 29, the ChiNext MidCap 200 Index had no constituents with a market capitalization exceeding 50 billion yuan, with over 92% of its weight concentrated in small-cap stocks below 20 billion yuan.

Key Industry Comparison: New Energy vs. Computers

In terms of sector distribution, both the ChiNext Index and the ChiNext MidCap 200 Index focus on emerging industries but differ in their emphasis.

The ChiNext Index heavily covers companies in the new energy sector, such as photovoltaics and batteries. The largest sector by weight is electrical equipment, accounting for 33%. The second and third largest sectors are pharmaceuticals and biotechnology (18%) and electronics (9%), respectively.

For the ChiNext MidCap 200 Index, the computer sector holds the largest weight, at nearly 20%, followed by electronics (17%) and pharmaceuticals and biotechnology (15%), resulting in a relatively balanced sector distribution.

The differences between the two indices are also evident in their top 10 constituents. CATL, the largest constituent of the ChiNext Index, alone accounts for over 18% of its weight, while other top holdings like Sungrow Power and Eve Energy belong to the new energy sector (batteries, photovoltaics, etc.). In contrast, 8 of the top 10 constituents of the ChiNext MidCap 200 Index are from TMT sectors such as computers, electronics, and media.

Overall, the ChiNext Index and the ChiNext MidCap 200 Index complement each other, differing in constituent market capitalization, sector distribution, and top holdings. Investors should carefully consider their risk tolerance based on their investment objectives, time horizon, experience, and financial situation. By understanding the fundamental characteristics and valuation levels of these indices, they can make rational decisions to allocate to one or both indices.