Surge in Sci-Tech Board: HKEX's Southern Sci-Tech 50 Soars 200%
A-share market is closed, and funds are laying out in advance through Hong Kong stock ETFs during the "Golden Week."
Today (October 2nd), the STAR 50 ETF listed on the Hong Kong Stock Exchange - Nanfang STAR Market 50 surged, with the intraday increase once expanding to 200%, and it closed up by 32.46%.
During the trading, the manager of the STAR Market 50 ETF, Nanfang Dongying Asset Management Co., Ltd., issued a risk warning announcement, reminding shareholders of the sub-fund (i.e., Nanfang Dongying STAR Market 50 Index ETF) of the risks associated with market trading, including but not limited to significant premiums in secondary market prices.
The announcement shows that as of September 30, 2024, the net asset value per share of the sub-fund was 7.4243 RMB. Nanfang Dongying stated in the announcement that shareholders should act cautiously when trading A-share ETFs, especially when the mainland securities market is closed during the National Day holiday.
Nanfang Dongying STAR Market 50 Index ETF (03109.HK) began trading on February 10, 2021, marking the first ETF tracking the STAR Market 50 Index listed on the Hong Kong Stock Exchange.
Advertisement
It is understood that there are currently many products pegged to the STAR 50 Index. Domestic fund products of the STAR 50 Index have covered various types, including ETFs, enhanced ETFs, OTC index funds, and linked funds, with the number of domestic fund products reaching 26. At the same time, STAR 50 Index products have been successively listed on exchanges in 7 countries and regions, including the United States, the United Kingdom, Japan, and Hong Kong, China, becoming one of the A-share indices with the most overseas products.
According to data from the Shanghai Stock Exchange, as of June 14, 2024, the scale of domestic and overseas products of the STAR 50 Index exceeded 130 billion yuan, making it the fourth-largest broad-based index in China.
The top ten weighted stocks of the STAR 50 Index include SMIC, Higon Information, Kingsoft Office, SinoMicro, Megvii, Cambricon, Transsion Holdings, United Imaging, Roborock, and Jinko Energy, etc. The combined weight of the top five constituent stocks of the STAR 50 is 34.4%, and the combined weight of the top ten constituent stocks is 52.57%.
To better guide funds to support the development of hard technology and enhance the service level of the capital market for China's core and key technological innovations, in addition to the STAR 50 Index, indices and related ETF products targeting the STAR Market are continuously expanding.
On August 20th of this year, the STAR 200 was officially launched, focusing on stocks with smaller market value and good liquidity. Together with the STAR 50 and STAR 100 indices, they form the Shanghai Stock Exchange's STAR Market scale index series. The total market value of the samples accounts for about 88% of the total market value of the listed companies on the STAR Market, enhancing the coverage of the STAR Market scale series index for the STAR Market and providing investors with more diversified benchmark references and investment tools.At the same time, this year, the Shanghai Stock Exchange (SSE) and the China Index Company have also launched a series of thematic indices for the STAR Market, including healthcare, artificial intelligence, chip design, and semiconductor materials and equipment, further enhancing the coverage of the STAR Market indices in the sub-segments of new productive forces and providing investors with more diversified investment analysis tools.
With the continuous expansion of the STAR Market indices, the corresponding ETF products will also increase accordingly.
Since the release of the "Science and Technology Innovation Board Eight Articles" on June 19th this year, several STAR Market ETF products, including the STAR Market New Energy and STAR Market Industrial Machinery, have been approved; in July, the GF Science and Technology Innovation 100 Enhanced ETF and the E Fund Science and Technology Innovation 100 Enhanced ETF were successively listed; the Bosera STAR Market Chip ETF, ICBC Credit Suisse STAR Market Biomedical ETF, and Penghua STAR Market New Energy ETF were issued; on September 6th, the first product tracking the SSE STAR Market 200 Index - Huatai-PineBridge SSE STAR Market 200 ETF was officially approved.
Market analysis believes that the continuous enrichment of STAR Market index varieties has enriched investors' investment channels and also reduced investment thresholds and risks.
At the same time, the mutual connection between the ETFs of the mainland and Hong Kong markets is also continuing to advance.
At the beginning of this year, according to the updated list of mutual connection on the Hong Kong Stock Exchange's official website, 11 new mutual connection ETF targets were added to the Shanghai-Shenzhen Stock Connect, including STAR Market-related ETFs and thematic ETFs such as artificial intelligence.
In July this year, the mutual connection of ETFs expanded significantly again, with a total of 91 products from the Shanghai, Shenzhen, and Hong Kong stock exchanges being newly included.