Recently, several smaller A50 and A500 index funds have convened shareholder meetings, with the main proposals all related to fund operations.

It has been noted that the shareholder meetings for the Bank of China CSI A500 Index Enhanced Fund and the Huian CSI A500 Index Fund, convened to deliberate on proposals for continued operation, both ended in failure. Meanwhile, the New China CSI A50 ETF convened a shareholder meeting to directly amend the termination clause in its fund contract.

Furthermore, the Guolian CSI A50 Link Fund and the Galaxy CSI A500 ETF Link Fund are also set to hold shareholder meetings to deliberate on proposals concerning the funds' continued operation.

A Series of Shareholder Meetings On May 21, the Bank of China CSI A500 Index Enhanced Fund and the Huian CSI A500 Index Fund announced the outcomes of their recent shareholder meetings. The meetings for both funds were deemed unsuccessful.

Specifically, the valid voting shares for the Bank of China CSI A500 Index Enhanced Fund's shareholder meeting totaled 5,818.69 shares, representing only 0.0268% of the total 21.7 million shares on the record date, far below the required threshold of one-half.

For the Huian CSI A500 Index Fund's shareholder meeting, the valid voting shares totaled 21,700 shares, representing 0.08% of the total 26.93 million shares on the record date, also significantly below the one-half requirement.

The proposals deliberated at these meetings were related to the funds' continued operation, but the results indicate that neither was successfully passed. However, even though the meetings failed, it does not currently affect the continued operation of these two funds.

Apart from these two funds, the New China CSI A50 ETF recently held a shareholder meeting to deliberate on amending the fund contract's termination clause.

The original clause stated: "If the number of fund shareholders remains below 200 or the fund's net asset value falls below 50 million yuan for 50 consecutive business days, the fund manager shall terminate the fund contract without the need to convene a shareholder meeting for deliberation."

The amended clause now reads: "If the number of fund shareholders remains below 200 or the fund's net asset value falls below 50 million yuan for 60 consecutive business days, the fund manager shall report to the China Securities Regulatory Commission within 10 business days and propose a solution, such as continued operation, a change in operation mode, a merger with another fund, or termination of the fund contract, and shall convene a shareholder meeting within 6 months."

Clearly, after the amendment, if a fund's size encounters the aforementioned conditions, it will not face immediate liquidation. Instead, it will require a shareholder vote. However, regardless of the success of the shareholder meeting, the fund's continued operation will not be affected in the short term.

A Significant Gap in Scale In addition to these funds that have already held shareholder meetings, it is noted that several other funds related to the A50 and A500 indices are either currently holding or are about to hold meetings.

For example, the voting period for the Galaxy CSI A500 ETF Link Fund's shareholder meeting runs from May 22, 2026, to 5:00 PM on June 22, 2026. Similarly, the voting period for the Guolian CSI A50 Link Fund's shareholder meeting runs from May 25, 2026, to 5:00 PM on June 23, 2026.

It is worth noting that the shareholder meetings for these two funds also deliberate on matters related to the funds' continued operation.

Wind data shows that, as of now, there are over 150 index funds and link funds related to the A500 index. The scale disparity among these funds is vast, with five funds exceeding 10 billion yuan in assets, while more than one-tenth of the products have assets below 50 million yuan.

There are also dozens of index funds and link funds related to the A50 index, with over ten having assets below 50 million yuan.

In the current environment where the Matthew effect is prominent in index funds, leading products continue to attract inflows due to their scale advantages, lower fees, and better liquidity. In contrast, smaller tail-end funds not only face higher operational costs but also long-term risks of liquidation.

The recent actions by several fund companies to "ensure operation" by amending contract clauses and deliberating on continued operation proposals reflect the increasingly fierce competition in the broad-based index fund arena. Product survival of the fittest may accelerate further in the future. When selecting related index funds, investors should prioritize leading varieties with sufficient scale and good liquidity to avoid the potential operational and liquidation risks associated with small and micro funds.