The digital economy is reshaping production, lifestyles, and governance models, emerging as a key force in reallocating global resources, restructuring economic frameworks, and altering the competitive landscape. Advancing the digital economy represents a strategic choice to seize the opportunities of the new technological revolution and industrial transformation. Software serves as the soul of next-generation information technology, the foundation for digital economic growth, and a critical pillar in building a manufacturing powerhouse, a cyber power, and a digital China. The core of digital industrialization lies in software industry upgrades, the implementation of industrial digitalization depends on software empowerment, and the digital transformation across all sectors hinges on software as the central driver.
Overview of the Index
Index Name: CSI All Share Software Development Index
Index Code: 932094.CSI
Index Introduction: The CSI All Share Software Development Index aims to comprehensively reflect the overall performance of listed companies involved in the software development industry within the A-share market.
Base Date: December 31, 2021
Launch Date: March 29, 2023
Issuing Institution: CSI Index Company
High Purity Focus
The CSI All Share Software Development Index features a highly concentrated industry allocation, with 100% of its weight in software development-related fields. Specifically, the software development segment accounts for 72.35%, and the IT services segment accounts for 25.94%, totaling over 98% combined. This structure enhances the sector's purity, strengthens its beta characteristics, and closely aligns with the industry benefits of software upgrades and AI application development.
Distinctive Small and Mid-Cap Growth Profile
From a market capitalization perspective, the CSI All Share Software Development Index is centered on a small-cap style. The average total market value of its constituent stocks is 14.4 billion yuan, with a median of only 7.1 billion yuan. Stocks with a market value below 20 billion yuan collectively account for about 83% of the index. This small-cap growth orientation tends to offer greater upside elasticity during bull markets, making it well-positioned to capture growth opportunities in the software niche segments.
Balanced and Diversified Weight Distribution
The top ten constituent stocks of the CSI All Share Software Development Index have a combined weight of approximately 41.9%, reflecting a balanced and diversified weight structure. The maximum weight of any single stock is capped at 10%, mitigating concentration risk. This setup combines the growth returns of niche leaders with the stability of a diversified portfolio, focusing on core areas such as AI applications, cloud computing, and the domestic IT innovation industry. It simultaneously covers high-growth sectors like fintech, the HarmonyOS ecosystem, and cybersecurity, potentially benefiting from the dual growth dividends of AI technological transformation and the deepening of domestic IT substitution.
Valuation at a Low Point
Following recent market adjustments, the index's valuation has fallen to a relatively low level. As of June 30, 2026, the current price-to-earnings ratio (PE TTM) of the CSI All Share Software Development Index stands at 166.94 times, placing it in the 22.22nd percentile of its range over the past three years. This low valuation position offers a significant margin of safety, suggesting potentially limited short-term volatility risk. Furthermore, from the perspective of current industry fundamentals, the accelerated commercialization of AI applications and the deepening of domestic IT substitution are expected to drive upward momentum in industry profit expectations. The alignment between valuation and fundamentals is continuously improving, indicating substantial room for recovery. The current period may present an important window for long-term investment in the software industry.
Software is the core foundation of the digital economy and a key area of focus for achieving technological self-reliance. It has been designated as a priority development direction in the 15th Five-Year Plan, suggesting long-term strategic certainty for industry growth. As a high-growth core sector within the national economy, the CSI All Share Software Development Index, with its high-purity focus and distinctive small and mid-cap growth profile, offers a valuable tool for investors looking to allocate capital to the software industry.