The Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. have unveiled plans to launch the STAR Market Composite Index and its price return counterpart on January 20, 2025. This marks a significant evolution for China's high-tech stock market, as the new indices promise to provide investors with fresh, more comprehensive tools to track the performance of this rapidly growing sector.

• Market Representation: The STAR Market Composite Index will include all eligible securities from the STAR Market, giving a panoramic view of the market's overall performance. This is a sharp contrast to narrower indices like the STAR 50, which focus on the largest and most established players.

• Comprehensive Coverage: With a market capitalization weighting, the Composite Index covers nearly 97% of the STAR Market, providing a more inclusive and accurate benchmark for investors. Whether you're eyeing fast-growing small caps or well-established large firms, this index gives a full spectrum of the market's pulse.

• Sector Diversity: Unlike the STAR 50, which has a particular focus on semiconductors, the Composite Index encompasses a wider range of industries, from biotechnology to clean energy to advanced manufacturing. This broad sectoral representation makes it an invaluable tool for those seeking diversified exposure to China's innovation-driven economy.

• A Broader View for Investors: By the end of 2024, the STAR Market had 581 companies listed, with a total market capitalization exceeding 6.34 trillion yuan (approximately USD 880 billion). As one of China's fastest-growing financial markets, the STAR Market has become an essential player in global technology investments. The Composite Index will serve as the essential guide for anyone looking to track the market as a whole.

As the STAR Market continues to evolve, international investors are increasingly looking for efficient ways to navigate its expanding universe. With the STAR Market Composite Index, global business professionals can now gain insights into the entire market ecosystem, not just the largest players. For those with a keen eye on China's burgeoning technology sectors—especially in areas like AI, biotech, and green tech—this index offers a more dynamic and comprehensive view.

The STAR Market is positioned as a prime destination for investors seeking exposure to cutting-edge industries. As China continues its push to lead in global technology innovation, the STAR Market stands as a key entry point for international investors wanting to capitalize on this trend. By offering a holistic market gauge, the Composite Index empowers investors to make more informed, strategic decisions in a market brimming with growth potential.

This move signals an important shift in China's financial markets: the transition from a focus on a few large companies to a more balanced and inclusive approach. The STAR Market Composite Index joins an ever-growing suite of indices, reflecting China's deeper integration with global markets and its increasing attractiveness as an investment destination.

As the number of listed companies continues to rise, and with 581 companies already listed as of the end of 2024, the STAR Market is solidifying its position as a crucial part of China's tech-driven economy.

Moreover, the scale of index products tied to the STAR Market has surged. As of the end of 2024, the total scale of domestic and international products tracking STAR Market indices exceeded 2800 billion yuan, with the STAR 50 tracking products alone accounting for over 75% of this total. This growth reflects increasing investor demand for diversified index products, reinforcing the importance of indices like the Composite Index in guiding investment decisions.