A major ETF provider with over a trillion yuan in equity ETF assets, China Asset Management (Huabao), has officially launched the Huabao ChiNext Composite Index Enhanced Fund today (May 11th). The fund's designated portfolio manager is Wang Zheng, Assistant General Manager of the Quantitative Investment Department at Huabao Fund. Under his management, the Huabao CSI 300 Enhanced Fund A has achieved an annualized return of 7.64% since its inception. (Past performance of a fund does not predict its future results, and the performance of other funds managed by the same manager does not guarantee the performance of this fund. Investors should exercise caution.)

To implement the China Securities Regulatory Commission's (CSRC) "Opinions on Deepening ChiNext Reform to Better Serve the Development of New Quality Productive Forces," the Shenzhen Stock Exchange officially released the first batch of four supporting business rules on April 24th. These include the revised "ChiNext Stock Listing Rules," "Trading Rules," and "Implementation Rules for the Issuance and Underwriting of Initial Public Offerings." The ChiNext Composite Index, which focuses on serving the development of new quality productive forces, also reached a new historical high that same month.

**Technology + Balance: High Tech Content and More Balanced Sector Distribution** The underlying index for the Huabao ChiNext Composite Index Enhanced Fund is the ChiNext Composite Index. This index reflects the overall performance of China's ChiNext market and includes all listed company stocks that meet basic requirements, totaling 1,353 constituent stocks (as of April 30, 2026). It offers broader coverage and stronger representation compared to the ChiNext Index and the ChiNext 50 Index.

The index's sector distribution is primarily concentrated in emerging industries such as power equipment, electronics, communications, pharmaceuticals and biotechnology, and computers, indicating high technological content. Additionally, over 20% of its constituents are specialized, sophisticated, and innovative enterprises, a proportion significantly higher than other broad-based indices. Compared to the ChiNext Index and the ChiNext 50 Index, its sector and individual stock distribution are more balanced.

After 16 years of development, the Shenzhen Stock Exchange's ChiNext board has become one of the world's most dynamic stock markets. It has nurtured and grown a large number of high-quality technology companies, demonstrating significant advantages in the cluster development of key areas such as artificial intelligence, advanced manufacturing, the digital economy, and green, low-carbon initiatives. This has strongly promoted China's innovative economic development and industrial restructuring. Currently, high-tech enterprises account for approximately 90% of ChiNext-listed companies, with nearly 70% belonging to strategic emerging industries.

On April 10th, the CSRC formally issued the "Opinions on Deepening ChiNext Reform to Better Serve the Development of New Quality Productive Forces." These opinions cover reform measures across eight areas, including market positioning, listing standards, review mechanisms, financing and M&A, investor-side reforms, and comprehensive process supervision. This reform will further enhance the attractiveness and competitiveness of the ChiNext board, driving a greater concentration of factor resources towards new quality productive forces.

**Elasticity + Returns: High Volatility and Strong Long-Term Performance** The ChiNext Composite Index is characterized by high elasticity, which can add stronger offensive capabilities to an investment portfolio. Since its base date (May 31, 2010), the ChiNext Composite Index has achieved a cumulative gain of 340%, with an annualized return of 10.06% and a Sharpe Ratio of 0.44. It has demonstrated favorable excess returns relative to both the CSI 300 and CSI 500 indices.

Wang Zheng, the designated portfolio manager for the Huabao ChiNext Composite Index Enhanced Fund, also manages the "ChiNext Composite Enhanced ETF Huabao (159292)." He brings 11 years of investment management experience. The quantitative investment team at Huabao Fund, which he is part of, has been dedicated to researching quantitative investment strategies since 2005. Over 20 years of accumulation have resulted in a series of quantitative research achievements with local characteristics, continuously evolving and improving through productization. Since January 2020, Wang Zheng has co-managed two funds, the Huabao CSI 300 Enhanced Fund and the Huabao Quantitative Hedge Fund, with Xu Liming, General Manager of the Quantitative Investment Department at Huabao Fund, demonstrating rich quantitative investment experience.

According to Wang Zheng, the quantitative multi-factor stock selection model used for the investment management of the Huabao ChiNext Composite Index Enhanced Fund and the "ChiNext Composite Enhanced ETF Huabao" primarily considers fundamental factors such as valuation, growth, profitability quality, market expectations, and institutional holdings, as well as technical factors like price-volume and fund flows. The model determines the optimized weight of each factor with the goal of achieving the level and stability of excess returns, selecting higher-scoring stocks within each sector to construct the equity portfolio. The fund aims to effectively track the ChiNext Composite Index while striving to achieve excess returns beyond its performance benchmark.

In the field of index investing, Huabao Fund has successfully built a diversified ETF matrix covering areas such as the "AI Industry Chain," "Cyclicals," "Consumer," "Pharmaceuticals," "High Dividend," and "Mainstream Broad-based Indices." According to data from the Shanghai and Shenzhen Stock Exchanges, as of May 7, 2026, Huabao Fund's equity ETF assets under management reached 131.996 billion yuan, firmly ranking within the top ten in the industry. In recent years, based on over two decades of in-depth research and systematic accumulation in the field of index-enhanced investing, Huabao Fund has strategically launched products including the Huabao Rare Metals Index Enhanced Fund, CSI A500 Index Enhanced Fund, STAR Market Composite Index Enhanced Fund, STAR Market Enhanced ETF Huabao, ChiNext Composite Enhanced ETF Huabao, and CSI 300 Enhanced ETF Huabao. The launch of the Huabao ChiNext Composite Index Enhanced Fund provides investors with another quality option to participate in the wealth creation opportunities arising from the development of new quality productive forces.

**Special Reminder:** Recent market volatility may be significant, and short-term price movements do not predict future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.

**ETF Fee Information:** When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions. For fee rates of over-the-counter funds, please refer to the fund's legal documents.

**Data Sources:** Fund periodic reports, Wind, CNI Index Company; relevant performance data has been verified by the custodian bank. The similar funds managed by Wang Zheng are the Huabao CSI 300 Enhanced Fund and the Huabao CSI Rare Metals Index Enhanced Fund. The Huabao CSI 300 Enhanced Fund A (003876) was established on December 9, 2016. Its successive fund managers have been Xu Liming (since December 9, 2016) and Wang Zheng (since January 2, 2020). Since its establishment on December 9, 2016, and until March 31, 2026 (after transitioning to the CSI 300 Enhanced ETF Huabao Feeder Fund from January 9, 2026), the fund achieved a cumulative return of 98.48% and an annualized return of 7.64%. The underlying index for the CSI 300 Enhanced ETF Huabao Feeder Fund A is the CSI 300 Index. Its annual net value growth rates and the growth rates of its performance benchmark for 2021-2025 were: -1.92%, -22.86%, -8.94%, 16.05%, 20.45% and -3.44%, -19.40%, -9.47%, 15.72%, 18.52%, respectively. The Huabao CSI Rare Metals Index Enhanced Fund A was established on December 15, 2021. Its successive fund managers have been Xu Liming (December 15, 2021 - November 14, 2023), Zhuang Haoliang (December 15, 2021 - August 23, 2025), and Wang Zheng (since August 23, 2025). Its performance benchmark is the CSI Rare Metals Theme Index Return × 95% + RMB Bank Demand Deposit Interest Rate (after tax) × 5%. Its annual net value growth rates and the growth rates of its performance benchmark for 2022-2025 were: -25.94%, -23.10%, -2.52%, 88.55% and -24.59%, -23.53%, -6.00%, 83.88%, respectively.

**Risk Disclosure:** The underlying index for the Huabao ChiNext Composite Index Enhanced Fund is the ChiNext Composite Index. Its base date is May 31, 2010, and it was published on August 20, 2010. Its annual gains for 2021-2025 were: 17.93%, -26.77%, -5.41%, 9.63%, 40.40%, respectively. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its back-tested historical performance does not predict the index's future performance. This product is issued and managed by Huabao Fund. Distributing institutions do not assume responsibility for the product's investment, redemption, or risk management. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Key Facts Statement," and other fund legal documents to understand the fund's risk-return characteristics and choose a product suitable for their own risk tolerance.

The fund manager assesses the risk level of the Huabao ChiNext Composite Index Enhanced Fund, Huabao STAR Market Composite Index Enhanced Fund, STAR Market Enhanced ETF Huabao, and ChiNext Composite Enhanced ETF Huabao as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. The fund manager assesses the risk level of the Huabao Rare Metals Index Enhanced Fund, Huabao CSI A500 Index Enhanced Fund, and CSI 300 Enhanced ETF Huabao as R3 - Medium Risk, suitable for Balanced (C3) and above investors. The fund manager assesses the risk level of the Huabao Quantitative Hedge Fund as R2 - Low to Medium Risk, suitable for Conservative (C2) and above investors. Suitability matching opinions are subject to the sales institution. Sales institutions (including the fund manager's direct sales channels and other sales institutions) evaluate the risk of this fund according to relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions from different sales institutions may not necessarily be consistent, and the fund product risk rating results issued by fund sales institutions shall not be lower than the risk rating results determined by the fund manager. The description of the fund's risk-return characteristics in the fund contract and its risk rating may differ due to different considerations. Investors should understand the fund's risk-return profile and, based on their own investment objectives, time horizon, investment experience, and risk tolerance, prudently select fund products and bear the risks themselves. The CSRC's registration of the aforementioned funds does not indicate a substantive judgment or guarantee of their investment value, market prospects, or returns. Past performance of a fund does not predict its future results, and the performance of other funds managed by the same manager does not guarantee the performance of this fund. Fund investment involves risks.