China remains the world’s second-largest economy. Investors who want diversification beyond the US-centric growth story will appreciate exposure to the Chinese markets. After all, China continues to offer exposure to industries that do not move in line with major US tech cycles.
That said, it’s natural for investors to feel uneasy about China stocks, especially considering their exposure to regulatory changes and global political tensions. A simple solution is to rely on China ETFs that allow access to major Chinese indices.
This is where China A-shares come in. As China’s domestic equity market continues to mature, A-share indices have become one of the most direct ways for foreign investors to gain exposure to the country’s long-term economic engine.
The A500 Index is the latest entrant, having been officially launched only in September 2024. Designed to represent a broader slice of China’s market that goes beyond the usual mega-cap names, the A500 tracks 500 large-cap Chinese companies across diverse sectors.
Investing in the A500 is going to be easier with the new CSOP CSAM CSI A500 ETF that will start trading on 20 Jan 2026. But does this ETF deserve a spot in your portfolio?
Read on as we compare key broad China indices, explore the pros and cons of the new CSOP CSAM CSI A500 ETF, and more.
What is the CSI A500 index?
The A500 Index is a broad-based China A-share benchmark designed to reflect the depth and diversity of the China market. On top of market capitalisation, the A500 index also considers ESG scores and Stock Connect screening in its constituent selection process.
The A500 index goes beyond the largest state-owned enterprises. It includes a wider mix of large, mid, and emerging companies across sectors such as advanced manufacturing, healthcare, consumer, and technology. This offers investors a more comprehensive view of China’s domestic economy and its evolving growth drivers rather than relying on a small group of mega-cap names.
To learn more, you can read Alvin’s dive into the mechanics of the A500 index.
Best China A-share index: A500 vs A50 vs CSI 300
If you’ve been investing in the China markets, you’d already be familiar with two other popular A-share indices:
- China A50 Index: tracks the 50 largest and most established companies
- China CSI 300: tracks leading stocks listed on Shanghai and Shenzhen exchanges
Here are the key differences between these three broad China market indices:
| A500 | A50 | CSI 300 | |
| Number of Constituents | 500 | 50 | 300 |
| What it tracks | 500 companies across diverse sectors, providing representative exposure to the A-share market. | Top 50 representative industry leaders across various sectors. | Top 300 stocks trading on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. |
| Top 3 sectors | Industrials (22.68%)Information Technology (18.18%) Raw Materials(13.3%) | Banks (22.22%)Food, Beverage, and Tobacco (13.83%)Industrial Goods and Services (10.86%) | Information Technology (23.95%)Financials (22.3%)Industrials (16.85%) |
| ETFs (available via Singapore Stock Exchange) | CSOP CSAM CSI A500 INDEX ETF (SUN)Due to start trading on 20 Jan 2026 | UOBAM FTSE China A50 Index ETF (JK8) | Xtrackers CSI300 Swap UCITS ETF 1D (KT4) |
Now that we understand the key differences, you’re probably wondering which index performed the best.
Here’s a comparison of their performance since Oct 2024:
As you can tell, all three A-share indices move similarly; however, the A500 seems to be doing relatively better in recent months. While this could be a result of the inclusion of higher-quality, smaller-cap stocks, it could also be due to recent market conditions. Whether the A500 would continue to outperform similar indices remains to be seen.
Which China A-share Index is best for you?
A50: For investors seeking large-cap stability
If you are looking for exposure to China’s biggest and most established companies, the A50 index would be right up your alley. While its narrow focus makes it easier to understand, you should keep in mind that returns can be heavily influenced by a small number of mega-cap stocks.
Consider the A50 index in your portfolio if you:
- prefer blue-chip exposure
- are comfortable with a higher concentration risk
CSI 300: For investors looking for core China equity exposure
The CSI 300 offers a middle ground between concentration and diversification. By covering large and mid-cap leaders across Shanghai and Shenzhen, it is a suitable vehicle as a core holding in the China markets.
Consider the CSI 300 index in your portfolio if you:
- want broader, more diversified exposure to the China market
- are looking for a core China allocation
A500: For investors looking for diversified growth exposure
The A500 is designed to capture a broader slice of China’s economy, including emerging leaders alongside established firms. Its wider coverage and lower concentration may appeal to investors who believe in China’s long-term structural growth but want to reduce reliance on a handful of state-owned enterprises.
Consider the A500 index in your portfolio if you:
- want a diversified solution to investing in the China markets
- want exposure to current leaders and future growth companies
Although the A500 index was launched in September 2024, unless you are comfortable trading via Stock Connect, it was quite difficult for foreign investors to gain access to it.
But this is about to change with CSOP’s new A500 index ETF.
How to invest in China A500 in Singapore?
The new CSOP CSAM CSI A500 INDEX ETF’s initial offer period runs from 9 January to 14 January 2026, and the new ETF will be listed on SGX on 20 January 2026, with the counter, SUN.
Key information you need to know about the upcoming CSOP CSAM CSI A500 ETF
| Name | CSOP CSAM CSI A500 ETF |
| Ticker | SUN |
| Underlying Index | CSI A500 Index |
| Underlying Currency | Renminbi (RMB) |
| Trading Currency on SGX | Singapore Dollars (SGD) |
| Management Fee | 0.89% per annum at the point of writing |
| Additional Fees | Custodian Fee: 0.1%Other Fees (Director fees, admin, accounting, etc): 0.1% |
| Dividend Distribution Frequency | Annually |
Pros and Cons of investing in the CSOP CSAM CSI A500 ETF
As with any investment, the CSOP CSAM CSI A500 ETF has its share of pros and cons. Here are some you should consider before you invest.
Advantages of the CSOP CSAM CSI A500 ETF
- Broad China A-share exposure via a single investment: Own a diversified portfolio of 500 China A-share companies across Shanghai and Shenzhen through a single instrument.
- Simple access via SGX: With the ETF being listed on the Singapore Exchange, you can gain China A-share exposure in SGD, just like how you’d buy any Singapore stocks via your existing broker accounts.
- Trusted issuer: CSOP Asset Management is an established ETF provider regulated in Singapore.
Disadvantages of the CSOP CSAM CSI A500 ETF
- Expense ratio: The fund charges an annual management fee of 0.89% p.a. at the point of writing. This may be a major consideration for cost-conscious investors, especially since MSCI China ETFs have lower expense ratios of 0.2 – 0.59%.
- Tracking & replication spread: Like all passively managed ETFs, there can be tracking error, where the ETF’s returns diverge from the index it follows due to fees, market mechanics, and trading costs.
Conclusion
The CSOP CSAM CSI A500 Index ETF provides Singapore investors with a simple way to access the broad A500 index via SGX. The A500 index offers a diversified portfolio useful for investors seeking long-term participation in China’s economy.
However, like all China stock investments, it is not immune to regulatory risks or impacts from global political tensions. Investing in an ETF also comes with potential tracking error and a modest management fee. You should weigh these alongside your portfolio goals before investing.
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