New component index on STAR Market to be released

A new component index will be released on the 11th trading day after the number of listed stocks and depository receipts reaches 30 on the sci-tech innovation board (STAR Market), according to the Shanghai Stock Exchange (SSE) and China Securities Index Company Limited.

STAR Market, China’s Nasdaq-style tech board, will begin trading on July 22, with the first batch of 25 tech companies to be listed.

The new index, the SSE STAR Market 50 component index, can reflect the overall price performance of listed companies on the new board, reflect the market structure and changes, and enrich the SSE index system, said the SSE in a statement.

At present, internationally influential indexes are primarily component indexes, which can not only serve as a yardstick to measure the overall performance of the market, but also a tool for asset allocation, investment and risk management, the statement said.

Listed companies on STAR Market mainly focus on high-tech and strategic emerging industries, including information, biomedicine and high-end equipment, with intensive research and development input, it said.

Most of the listed companies are developing rapidly, in line with the direction of the national strategy and economic restructuring, it added.

The index is conducive to the formation of a demonstration effect of the most influential leading companies, the SSE statement said.