The Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. announced that they will officially launch the SSE STAR Market Composite Index (hereinafter referred to as the "STAR Composite Index") and its price index, the SSE STAR Market Composite Price Index, on January 20, 2025. The STAR Composite Index selects all listed companies on the STAR Market that meet the required criteria as sample securities for the index, reflecting the overall performance of the STAR Market.
Since its launch in July 2019, the STAR Market has operated smoothly, fully demonstrating the function of the STAR Market as a “testing ground” for reforms and continuously establishing itself as the “main battlefield” for nurturing new productive forces. By the end of 2024, the number of listed companies on the STAR Market had reached 581, with a total market value exceeding 6.34 trillion yuan. As the number of listed companies steadily increases, investor demand for an index that represents the overall performance of STAR Market-listed companies has been growing. Against this backdrop, the SSE and China Securities Index Co., Ltd. have developed the STAR Composite Index to provide a more comprehensive and richer representation of the STAR Market.
What is the SSE STAR Market Composite Index?
The STAR Composite Index is a core index of the STAR Market. It complements the SSE STAR Market 50 Index (hereinafter referred to as the "STAR 50 Index"), with each index focusing on different aspects and jointly representing the performance of the STAR Market. From an index positioning perspective, the STAR Composite Index is a comprehensive index, covering nearly 97% of the market value, mainly serving as a broad representation of the STAR Market and also possessing certain investment functionality. The STAR 50 Index is a constituent index that selects representative securities from the STAR Market, with a market value coverage of 45%, and mainly serves an investment function.
In terms of market capitalization distribution, the STAR Composite Index includes a wide range of securities, from large, mid, to small-cap stocks. The average and median market capitalization of the sample are 11.3 billion yuan and 5.1 billion yuan, respectively, which is roughly in line with the overall market of the STAR Market. In contrast, the STAR 50 Index focuses on large-cap leading securities in the STAR Market, with the average and median market capitalization reaching 67.4 billion yuan and 37 billion yuan, respectively.
From an industry distribution perspective, the STAR Composite Index has a relatively balanced sector distribution, with semiconductor, power equipment, machinery manufacturing, and pharmaceuticals among the industries with the highest number and weight. The semiconductor sector alone accounts for 38%. The STAR 50 Index, however, has a more focused industry distribution, with semiconductors making up 62% of the index.
In recent years, the SSE and China Securities Index Co., Ltd. have continued to improve the STAR Market index system, in line with strategic goals such as achieving high-level technological self-reliance. The "toolbox" for investment has been continually expanded. As of now, 26 STAR Market indices have been launched, creating a system of indices covering various types such as size, theme, and strategy. The tracking scale of related products, both domestic and international, has reached approximately 250 billion yuan. This system has effectively guided funds to support the development of "hard technology" and enhanced the capital market’s service capacity to improve China’s key core technological innovation capabilities. The launch of the STAR Composite Index will further complement and improve the STAR Market index system, enrich the diversity of broad-based index systems, and enhance the influence and competitiveness of domestic indices. It will play an important role in attracting new capital to the market and supporting key technological innovation.
