A-shares fluctuate and rebound, with small-cap stocks leading the gains

Ask AI · How does style rebalancing drive a value re-rating for mid- and small-cap stocks?

On April 7, China’s A-share market showed a choppy rebound. The overall market’s style allocation was notably differentiated. Mid- and small-cap broad-market indices led across the board, becoming the core driving force behind this round of market activity. By the close, the CSI 2000 Index rose 1.4%, the ChiNext Mid-cap 200 Index increased 1.0%, the CSI 1000 Index rose 0.9%, the CSI 500 Index rose 0.5%, and the STAR Market 100 Index gained 0.2%. The upside elasticity of growth-related mid- and small-cap names stood out, and the market’s risk-on “money-making” effect continued to recover.

On the institutional view, CICC’s report titled 《A-share Q2 2026 Strategy: Style Rebalancing and Mid- and Small-Cap Value Re-Rating》 clearly指出 that the current A-share market is in a style rebalancing phase characterized by large-cap valuation repair and mid- and small-cap earnings delivery. As the Q1 earnings disclosure period approaches, mid- and small-cap companies are expected to see sustained inflows of capital and a value re-rating, supported by high optimism in their subdivided segments, high earnings growth rates, and advantages in valuation-for-value.

From the perspective of index characteristics and investment layout (data source: Wind, as of April 7, 2026):

CSI 2000 Index (CSI 2000 ETF, E Fund 159532): Up 1.4% today, with a trailing price-to-earnings ratio of 150.5x, published on August 7, 2023. The index is made up of 2,000 stocks with smaller scale and better liquidity than the constituents of the CSI 1000, focusing on A-share micro-cap stocks. It fully covers 11 first-level industry categories, with the strongest growth attributes.

CSI 1000 Index (CSI 1000 ETF, E Fund 159633): Up 0.9% today, with a trailing price-to-earnings ratio of 46.2x, with a valuation percentile of 63.8% since 2014. The index consists of 1,000 stocks with a smaller scale and better liquidity than the CSI 800 constituents, broadly reflecting the overall performance of A-share mid- and small-cap companies.

CSI 500 Index (CSI 500 ETF, E Fund 510580): Up 0.5% today, with a trailing price-to-earnings ratio of 34.3x, with a valuation percentile of 65.0% since 2007. The index is composed of 500 stocks after excluding the Shanghai-Shenzhen 300 and the top 300 by total market capitalization, and it fully covers 11 first-level industry categories.

STAR 100 Index (STAR 100 ETF, E Fund 588210): Up 0.2% today, with a trailing price-to-earnings ratio of 122.4x, published on August 7, 2023. The index consists of 100 stocks on the STAR Market with medium market caps and relatively good liquidity, focusing on mid- and small-sized STAR Market enterprises. Hard-tech industries such as electronics, power equipment, and biopharmaceuticals together account for more than 75%.

ChiNext Mid-cap 200 Index (ChiNext 200 ETF, E Fund 159572): Up 1.0% today, with a trailing price-to-earnings ratio of 96.3x, published on November 15, 2023. The index consists of 200 stocks on the ChiNext with medium market caps and relatively good liquidity. It reflects the overall performance of representative mid-cap companies on the ChiNext, with the information technology sector accounting for more than 40%.

All of E Fund’s mid- and small-cap broad-market ETF lineup adopts a low-fee strategy of 0.2% per year (management fee + custody fee). E Fund’s CSI 2000 ETF (159532) tracks the CSI 2000 Index.

Risk warning: Funds involve risk; invest with caution.