CHINAFUND｜SSE STAR Market ETFs Boom as Total AUM Tops 250 Billion Yuan!

[Introduction] SSE held a symposium to discuss the investment aspects marking the first anniversary of the "STAR Market Eight Measures."

Wu Jun, reporter of CHINAFUND

On June 11, the Shanghai Stock Exchange (SSE) held a symposium to discuss the investment aspects marking the first anniversary of the "STAR Market Eight Measures." Representatives from funds and institutional investors, including insurance companies, securities firms, banks, and bank wealth management subsidiaries, attended the event to explore the development of indexed investments in the STAR Market. They also focused on the "Ecological Construction of Long-term Funds for Long-term Investment and High-quality Development of ETFs." Additionally, participants offered suggestions for further deepening the reform of the STAR Market and promoting the high-quality development of the Shanghai ETF market.

Data shows that since the release of the Eight Measures, 13 STAR Market indices have been introduced and 51 STAR Market ETFs have been listed, nearly doubling in number, resulting in an almost 60% total increase in the scale of STAR Market ETFs.

80 STAR Market ETFs have been listed,

with a total scale exceeding 250 billion yuan.

At the symposium, representatives of institutional investors noted that the momentum for index-based investments is accelerating. STAR Market ETFs are increasingly regarded as pivotal channels for investor participation in the market, consistently drawing investments toward hard tech companies.

Currently, the STAR Market includes 29 indices, with 80 ETFs listed and a total scale exceeding 250 billion yuan. The STAR Market constitutes the highest proportion of index-based investments in A-shares, accounting for 8.3% of the market's overall free float market value.

Representatives noted that the STAR Market has established a range of broad-based indices, including the 50 Index, 100 Index, 200 Index, and Composite Index, as well as industry-specific themes such as new-generation information technology, biomedicine, chips, and artificial intelligence. It also features a strategic index product system, such as STAR Growth. This structure makes it easier for investors to engage with the STAR Market and encourages sustained participation from long-term funds, particularly those from the insurance and banking sectors.

Data shows that the overall scale of broad-based ETFs on the STAR Market has exceeded 200 billion yuan. Following the release of the Eight Measures, the launch of the 200 Index ETF and the Composite Index ETF has further diversified market options. Broad-based ETFs on the STAR Market now include investments aligned with the 50, 100, 200, and Composite Indices, creating a comprehensive product chain that meets varying investment demands across large-, medium-, small-cap, and overall market strategies.

Following the release of the Eight Measures, 13 STAR Market indices, including the Guoxin STAR State-owned Enterprises and the Composite Index, have been successively launched. Additionally, 51 STAR Market ETFs have been listed, nearly doubling the number prior to these measures. The overall scale of STAR Market ETFs has risen by approximately 60%. Coverage of new quality productive forces continues to expand, providing the market with a broader spectrum of STAR Market investment tools.

Indices such as those focused on artificial intelligence, new energy, chip design, semiconductor materials and equipment, and industrial machinery are all ETF products launched for the first time following the release of the Eight Measures.

Relevant measures of the Eight Measures have been implemented,

enhancing supportive mechanisms for the STAR Market ETFs.

Representatives expressed views that the Eight Measures—through improving trading mechanisms like enriching index types, diversifying ETF categories, and optimizing standardized registration mechanisms for broad-based index products—have been progressively implemented. This is viewed as significantly enhancing the capital market's function in coordinating investment and financing activities.

They further discussed topics such as the STAR Market index, product development, and the optimization of the investment ecosystem.

Institutional investor representatives also expressed high expectations for optimizing the supportive mechanisms associated with STAR Market ETFs. According to a relevant official from the SSE, efforts are underway to integrate STAR Market ETFs into the fund trading platform for transfers. Additionally, research is being conducted on optimizing the market maker and after-hours fixed-price trading mechanisms, while actively channeling increased private investment into key state-supported areas, like new quality productive forces , to address investors' asset allocation requirements.

A relevant SSE official stated plans to meticulously implement policies such as the Implementation Plan for Promoting the Entry of Medium- and Long-Term Funds into the Market, the Action Plan for Promoting High-Quality Development of Index-based Investment in the Capital Market, and the Action Plan for Promoting High-Quality Development of Public Funds. SSE will actively pursue deeper reforms in the STAR Market, enhance communication with all market stakeholders, respond promptly to market concerns, pool efforts to elevate the quality and resilience of the index-based investment ecosystem, and drive the capital market's sustainable and stable development.

The above information is provided for reference purposes only and does not constitute investment advice.