On November 8, 2002, China's first open-end index fund —— the Hua An 180 Index Enhanced Fund (which has now been changed to the Hua An MSCI China A Share Index Enhanced Securities Investment Fund) was officially established, and the concept of indexed investment began to be introduced into China's capital market. Index funds belong to passive funds, which can be specifically divided into index replication funds and index enhanced funds. The former completely replicates the corresponding index portfolio, and its rise and fall will basically be in sync with the index, while the latter achieves long-term stable growth of the fund assets through the organic combination of indexed investment and active investment.