Shanghai Securities News｜First Batch of STAR Market Composite Index ETFs Submitted to Support Development of New Quality Productive Forces

Translated from Shanghai Securities News—www.cnstock.com

(Shanghai Securities News, www.cnstock.com) (Reporter He Xinyi) On January 8, Shanghai Stock Exchange and China Securities Index Co., Ltd. announced the release schedule for the SSE STAR Market Composite Index (STAR Market Composite Index) and its price index. The reporter noted that 12 fund management companies have recently submitted their STAR Market Composite Index ETFs, continuously directing funds to support advancing core technologies.

The STAR Market Composite Index includes all eligible listed company securities from the SSE STAR Market (STAR Market) to represent the market's overall performance. As a key core index of the STAR Market, the STAR Market Composite Index offers a distinct focus and complements the existing STAR Market Broad-based Index, capturing different aspects of the STAR Market's operations.

By the end of 2024, the STAR Market had expanded to 581 listed companies, with a total market cap approaching 6.34 trillion yuan. The free-floating market cap reached 3.14 trillion yuan, and aggregated revenue totaled 1.4 trillion yuan. As the number and scale of companies listed on the STAR Market continue to grow steadily, investor interest in these companies is increasing. The STAR 50, STAR 100, and STAR 200 indexes together comprise 350 constituents, covering about three-fifths of securities on the STAR Market. However, over 200 small and medium-sized enterprises in rapid growth phases remain uncovered by the broad-based index system.

The STAR Market Composite Index is designed as a comprehensive index for the STAR Market. Recently, the index's sample size exceeded 560, with market cap coverage approaching 97%. It includes large-cap, mid-cap, and small-cap securities, weighted by total market cap. The index mainly aims to represent the overall performance of the STAR Market. In comparison to the existing STAR Market Broad-based Index, the STAR Market Composite Index offers broader coverage and enhanced representation, providing a valuable tool for observing the market's development more comprehensively.

Since the launch of the first batch of STAR Market 50 ETFs in September 2020, the overall scale of STAR Market index products has expanded significantly, with a notable increase in the diversity of offerings. By the end of 2024, the total scale of STAR Market index products, both domestically and internationally, 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.

Industry insiders believe that as China's economy transitions to a stage of high-quality development, the share of emerging industries in both the real economy and capital market is on the rise. The launch of STAR Market Composite Index ETFs is expected to attract additional capital inflows, effectively supporting the development of new quality productive forces. This will address residents' wealth management needs and facilitate reform in the investment sector of the capital market.

From Shanghai Securities News—www.cnstock.com

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