Methodology of STAR 100 Index and STAR 200 Index to be Revised to Build a More Mature STAR Market

As the SSE STAR Market continues to mature, the SSE and the China Securities Index Co., Ltd. (CSI) have recently announced revisions to the methodology of the STAR 100 Index and the STAR 200 Index. The change aims to better reflect the overall performance of the STAR Market's listed companies and to further standardize the methodology for broad-based indexes of the STAR Market. The new methodology will take effect on March 17, 2025.

The STAR 100 Index and the STAR 200 Index were released in August 2023 and August 2024 respectively, reflecting the overall performance of securities of mid-cap STAR Market-listed companies, for the former, and securities of relatively small-cap STAR Market-listed companies, for the latter. Both are part of the STAR Market size index series, which also contain the STAR Market Composite Index and the STAR 50 Index.

Due to limited number of listed companies in early days of the STAR Market, to enhance the index representativeness and timely incorporate newly listed companies, the STAR 50, STAR 100 and STAR 200 Indexes set a threshold of "6 months after listing" for new securities eligible for inclusion. Through development in the past five years, the STAR Market now boasts a growing company base featuring more "core technology" enterprises and a more mature board profile, playing a good role as an "experimental field" for registration-based issuance reform. The STAR 50 Index has adopted "12 months after listing" threshold for new stock inclusion, while retaining the quick inclusion rule for stocks with large market value. The STAR Composite Index, released in January this year, also stipulates that securities whose daily average market value since listing ranks other than top 10 of the STAR Market shall be included into the index 12 months after listing.

In order to further align the methodology of the STAR broad-based indexes, the STAR 100 index and STAR 200 index will be revised, mainly by changing the time requirement for new share inclusion to "12 months after listing". The rest of the methodology remains unchanged.

To ensure smooth application of the revision and follow the principle of investability, after fully consulting market institutions, the new revision will take effect in a phased manner that treats new and existing constituents differently. New constituents will be screened based on the criterion that their listing time exceeds 12 months. For existing constituents whose listing time is close to 12 months, the time requirement could be relaxed to a certain extent, so as to avoid unnecessary moves in and out of the indexes.

In recent years, under the unified leadership of China Securities Regulatory Commission, the SSE and CSI have stayed focused on implementing high-level scientific and technological self-strengthening and other national strategies, taking on the leading task of enriching the SSE STAR Market Index system to contribute to the development of science and technology finance. This revision to the STAR 100 Index and the STAR 200 Index will further align the rules of the STAR Index system, enhance the investability of indexes, and give greater play to the STAR broad-based index products in attracting new capital to the market and serving key technological innovation.