Understanding China ’Nasdaq’ - ChiNext Index
The $ChiNext(399006)$ , operated by the Shenzhen Stock Exchange, is designed to support innovative and fast-growing companies. It focuses on industries such as technology, healthcare, advanced manufacturing, and other innovation-driven sectors, similar to how Nasdaq supports growth enterprises.
The index composition highlights this focus: industrials (35.23%), information technology (25.27%), and healthcare (11.76%) form the core of its exposure. As of 7 July 2025, the ChiNext Index trades at a price-to-book (P/B) ratio of 3.86, which is higher than HSTECH (2.57), STI (1.3), and CSI 300 (1.6), reflecting higher growth expectations for its listed companies.
The top 10 constituents of the ChiNext Index account for a significant portion of its performance:
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Contemporary Amperex Technology Co Ltd (CATL) – 20.8%
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East Money Information Co Ltd – 8.3%
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Shenzhen Inovance Technology Co Ltd – 4.0%
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Shenzhen Mindray Bio-Medical Electronics Co Ltd – 3.9%
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Wens Foodstuff Group Co Ltd – 2.9%
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Sungrow Power Supply Co Ltd – 2.8%
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Zhongji Innolight Co Ltd – 2.6%
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Eoptolink Technology Inc Ltd – 2.5%
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EVE Energy Co Ltd – 1.8%
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Aier Eye Hospital Group Co Ltd – 1.7%
This concentration in high-growth and innovation-driven companies makes ChiNext a barometer for China’s emerging industries and innovative economic drivers.
Investors using cash or SRS can look at $AmovaEFund ChiNext S$(CXT.SI)$.
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This stock was identified based on a signal generated by the TAD System https://bit.ly/tawpro.
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