Global Times｜First batch of STAR Market Composite Index ETFs launched to support development of new quality productive forces
A total of 12 fund management firms on Monday started the issuance of STAR Market Composite Index exchange-traded funds (ETFs) and STAR Market Composite Price Return Index ETFs, continuously directing funds into the market to support core technologies while meeting growing investor demand for richer tools representing the market's performance.
Huatai-PineBridge Investments announced the issuance of related ETFs on Monday. "The release of the STAR Market Composite Index marks a milestone in the historical process of the board's maturity and growth," said Tan Hongxiang, fund manager of the product at Huatai-PineBridge Investments.
In addition, 11 other fund firms including E Fund Management Co, China Asset Management and CCB Principal Asset Management Co also announced the issuance of ETF products on Monday.
With a steady increase in the number of listed companies, investor demand for indices that represent the overall performance of listed companies is growing, and the index system of the STAR market has become increasingly comprehensive in recent years, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Monday.
The launch of STAR Market Composite Index ETFs is expected to attract additional capital inflows, effectively supporting the development of new quality productive forces, he said.
On January 8, the Shanghai Stock Exchange and China Securities Index Co announced that they would launch two new indices on China's Nasdaq-style Science and Technology Innovation Board, known as the STAR market.
The STAR Market Composite Index consists of all eligible securities and aims to measure the overall market performance. The other index is the STAR Market Composite Price Return Index, which aims to measure the overall market price return performance of listed companies, according to the Shanghai Stock Exchange.
Official data showed that the number of companies listed on the STAR market reached 581 as of the end of 2024, with a total market capitalization exceeding 6.34 trillion yuan.
Since the launch of the first batch of STAR Market 50 ETFs in September 2020, the overall scale of index products has expanded significantly, with a notable increase in the diversity of offerings.
As of the end of 2024, the total scale of STAR Market index products had surpassed 250 billion yuan. These products have effectively directed financial support toward the development of core technologies, thereby strengthening the capital market's role in enhancing China's capacity for critical technological innovation, the Securities Times reported.
"In the future, the STAR market is expected to usher in new development opportunities, showcasing greater investment value," Tan said, stressing favorable conditions including China's remarkable increase in technological innovation capability, deepening reform of China's sci-tech system, "hard tech" attributes of companies listed on the board and the industrialization of new quality productive forces.