SHANGHAI, Jan 3 Reuters Chinese money managers are rushing to create funds tracking the newlylaunched CSI A50 Index, which analysts say is a better reflection of China39;s economic landscape and government priorities than the country39;s stock benchmarks.

China39;s benchmark bluechip CSI300 Index slumped 11 in 2023 as the world39;s secondworst performer after Hong Kong39;s Hang Seng Index. The Shanghai Composite Index, another closelywatched gauge, also fell sharply.

Compared with CSI300 and SSEC, the CSI A50 Index, consisting of 50 sector leaders, is more balanced in industry allocation, wrote Yin Zhongli, a researcher at the Chinese Academy of Social Sciences.

It39;s imperative for China to construct an authoritative index to better reflect its economic development.

Since CSI A5039;s launched on Tuesday, at least seven mutual fund companies, including Fullgoal Fund Management Co and E Fund Management have already applied to launch funds tracking the new index, according to regulatory filings.

Compared with current benchmarks, CSI A50 has less weighting in the financial sector, and leans more toward healthcare and new energy companies. Its top constituents include Kweichow Moutai Co, Jiangsu Hengrui Medicine Co and battery maker Contemporary Amperex Technology Co .

The index construction better reflects Beijing39;s intention to channel more money into innovation, advanced manufacturing and green technology, said Du Zhengzheng, an analyst at China Development Bank…