STAR 50 Index to be Launched
In order to reflect the performance of the securities listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange (SSE STAR Market) in a timely manner and provide the market with investment targets and performance benchmarks, the SSE and the China Securities Index Co., Ltd. will release the historical data of the SSE STAR Market 50 Index (short name: STAR 50) after the market close on July 22, 2020, and officially launch the real-time data of the index on July 23.
Over the year since its launch, the SSE STAR Market has seen the number of the listed companies steadily increasing and the market operating smoothly and orderly, with the companies’ attribute of sci-tech innovation highlighted. As of the end of May, there were a total of 105 companies listed on the SSE STAR Market, with a total market value of RMB1.6 trillion.A number of companies of sci-tech innovation that are in line with national strategies, make breakthroughs in key and core technologies and are highly recognized in the market have been attracted to the SSE STAR Market for listing, and the companies have invested heavily in research and development, which is of great significance for promoting high-quality economic growth. As the first index of the SSE STAR Market, the STAR 50 Index will improve the representation of the performance of the securities listed on the board and provide more investment targets.
The mature experience of the markets at home and abroad has been drawn on in the index construction, with the characteristics and conditions of the SSE STAR Market system taken into full consideration. The base date of the index is December 31, 2019 and the base level is 1,000 points. The index universe includes the stocks listed on the SSE STAR Market and the Chinese Depository Receipts (CDRs) issued by red-chip enterprises listed on the SSE STAR Market. Considering the development and the system characteristics of the SSE STAR Market, at the current stage new stocks will be included in the index universe 6 months after listing, and when the number of the securities that have been listed on the SSE STAR Market for twelve months reaches 100 to 150, the threshold for inclusion will be adjusted to 12 months. In addition, a differentiated schedule for the inclusion of large-cap companies has been set up. After liquidity-based screening, the constituents will be selected based on market cap indicators so as to achieve objective representation of the market. Constituents are weighted according to the amount of tradable shares, and in order to avoid the impact on the index by individual stocks with excessive weight, the upper limit of weight for individual stocks has been set. To adapt to the rapid development stage of the board, typical listed companies will be included in a timely manner, and a regular quarterly adjustment mechanism will be established.
For the methodology of constructing the STAR 50 Index, please refer to the SSE website (www.sse.com.cn) and the website of the China Securities Index Co., Ltd. (www.csindex.com.cn).