As the Lunar New Year commenced, a remarkable development captured the attention of the global AI community: DeepseeKThis innovation has ignited a fervor for investments in technology stocks, showcasing not only the potential of China's technology sector but also hinting at the future trajectory of the entire industryMany emerging tech firms are now poised to contribute significantly to the indices, garnering increased investment interest from the secondary market.

In tandem with this surge, the STAR Market index system is undergoing continuous refinementOn January 8, the Shanghai Stock Exchange and the China Securities Index Company announced the official launch of the Shanghai Securities STAR Market Comprehensive Index, or STAR Index, scheduled for January 20. This index is characterized by a well-balanced distribution across various sectors, offering a richer and more comprehensive representation of the STAR Market.

The STAR Index emerges as a key composite index representing the STAR Market, created to attract investor attention with its unique charmAs the wave of technology investment rolls in, Bosera Asset Management has been proactive in enhancing its layout within the STAR Market.

Seizing technology investment opportunities has never been easier.

Since its inception in July 2019, the STAR Market has maintained a smooth operation and exemplifies its role as a "testbed" for reform, forging ahead as the primary platform for nurturing new types of productivityAs of the end of 2024, the number of listed companies on the STAR Market reached an impressive 581, with a total market capitalization exceeding 6.34 trillion yuan

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Furthermore, the range of indices related to the STAR Market has also expanded significantly.

According to announcements, the STAR Index ETF by Bosera (589903) has been officially approved as of January 22, and is set for public sale starting February 17.

The STAR Index comprises securities from STAR Market-listed companies that meet specific criteria established by the Shanghai Stock ExchangeNotably, the index accounts for the dividends paid, providing a more accurate reflection of the overall performance of these securities.

As a crucial index for the STAR Market, the STAR Index is designed to complement existing indices, such as the STAR 50 Index, offering a multifaceted view of the market's operationsFrom its positioning, the STAR Index aims to serve as a composite index, with a market capitalization coverage close to 97%, and over 560 recent sample listings.

As of December 31, 2024, the STAR Index features a diverse range of securities encompassing large, medium, and small capsThe average sample market value is 11.3 billion yuan, with the median at 5.1 billion yuan, closely aligning with the overall market in the STAR sectionIn terms of industry distribution, the leading sectors include electronics, biomedicine, electric equipment, machinery, computers, and defense, which together represent over 90% of the index, with electronics alone accounting for 44.5%.

From a fundamental perspective, the average gross profit margin on the STAR Market exceeds 30%, outperforming the broader market indicesBetween 2020 and 2023, the proportion of R&D expenditure relative to revenue consistently approached 10%, significantly higher than in other indices, suggesting superior growth potential and sustainability.

Currently, the STAR Market is positioned at a lower profitability level, with P/E valuations near the median

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However, in terms of P/B ratios, the market stands in a historically undervalued zone, indicating some room for appreciation.

A dedicated professional index team ensures robust performance.

The STAR Market is strategically aligned as a hub for "hard tech," focusing on cutting-edge technology, significant economic areas, and national prioritiesIt caters to high-tech companies and emerging enterprises that adhere to national strategies and aim to overcome critical technological barriers with strong market recognitionInvesting in the STAR Market essentially translates to investing in the future of hardcore technology companies.

With a commitment to an innovation-driven development strategy, the STAR Market persists in showcasing its advantages in gathering companies at the forefront of tech innovationThe number of companies and their collective market value have steadily increased, attracting leading firms renowned for substantial size, robust research capabilities, and profitable operationsSector allocation remains focused on centrepieces of new-generation information technology, embodying emerging "hard tech" industries, thus enhancing brand value and accelerating the integration between capital markets and hard technology in a trend of mutual support and growth.

In recent years, Bosera Asset Management has been riding the wave of technology investments, significantly increasing its engagement with the STAR MarketThe firm’s product line now comprehensively covers most STAR Market indices, including Bosera STAR AI ETF (588790), STAR Entrepreneurial 50 ETF (588390), STAR New Materials ETF (588010), STAR 50 Index Fund (Class A 018145/Class C 018146), STAR 100 Index ETF (588030) and their corresponding connection funds (Class A 019857/Class C 019858), as well as Bosera Semiconductor ETF (588990), broadening the toolkit for investing in technology innovation and high-quality development.

Bosera Asset Management has garnered substantial experience in index investment since it established its index and quantitative investment team in 2009. The team comprises 19 fund managers and researchers, including six doctors, eleven master's graduates, and two bachelor's holders

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This diverse professional background, coupled with solid programming skills among research personnel, ensures a comprehensive approach to investment.

The index and quantitative investment team operates under a unified investment-research management system, segmented into three investment groups focusing on ETFs, index enhancements, and active quant tradingThey are further divided into more than ten research groups that cover a wide range of assets and strategies, including stocks (including Hong Kong stocks), bonds (including convertible bonds), funds (including quantitative private placements), commodities, and financial derivatives.

As of December 31, 2024, Bosera Asset Management boasts a total of 103 ETFs and index funds, with a cumulative scale amounting to an impressive 191.4 billion yuan.

In addition, Bosera has developed a dedicated index brand named "Bosera Genius Family," which encompasses a wide range of products, including core broad-based, thematic/industry indices, Smart-Beta, commodity indices, bond indices, and cross-border indicesThis initiative aims to provide investors with distinctive, nuanced index investment tools to meet diverse asset allocation needs, facilitating the capture of opportunities in the era of indexed investing.

In recent years, technology themes have emerged as a central narrative for secondary market investmentsWith DeepseeK energizing the fervor for technology investments, it is highly probable that technology investment will continue to play a pivotal role in investment strategiesThe Bosera STAR Index ETF (589903) stands ready to empower investors to seamlessly align with the STAR Market, enabling them to capitalize on the burgeoning opportunities in hard technology investment.

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