On the evening of November 21, the China Securities Regulatory Commission (CSRC) website disclosed that several hard tech funds, including the Tianhong SSE STAR Market Chip Design Theme ETF, have been officially approved.

Industry insiders indicated that these products closely align with national strategies and industrial policies, guiding capital to invest in high-quality listed companies within hard tech fields such as artificial intelligence, chips, and chip design. This is significant for leveraging the capital market's function of serving the real economy and supporting the development of strategic emerging industries, providing investors with a new investment tool to deploy in the hard tech market via ETFs.

It is worth noting that the Tianhong SSE STAR Market Chip Design Theme ETF tracks the SSE STAR Market Chip Design Theme Index. This index selects securities of listed companies on the STAR Market whose businesses involve the chip design sector as index samples to reflect the overall performance of these securities. It was officially launched by the Shanghai Stock Exchange and China Securities Index Co., Ltd. on July 26, 2024.

In terms of index performance, since the beginning of the year, the SSE STAR Market Chip Design Theme Index has accumulated a gain of 45%, outperforming the Shanghai Composite Index by 30.59 percentage points.

In the view of institutions, listed companies related to STAR Market chip design have prominent advantages. First, strong industry representativeness. They aggregate excellent enterprises in the chip design sector on the STAR Market, comprehensively reflecting the overall development trend. Second, strong technical capabilities. The vast majority of these companies possess advanced technology and patents in the field of chip design, creating a high competitive barrier. Third, ample growth potential. STAR Market companies are typically in a rapid development stage with significant future growth space. With profit improvements and valuation repairs, the semiconductor and chip sectors are expected to deliver more impressive performance in the future.

The approval of the Tianhong SSE STAR Market Chip Design Theme ETF is beneficial in two ways: on one hand, it helps provide investors with better tools for investing in hard tech listed companies; on the other hand, it helps enhance the agglomeration and demonstration effects of related advanced industries, injecting vitality into the development of listed companies and guiding resources to further tilt towards hard tech companies. This product is another important layout by Tianhong on the STAR Market this year, following the STAR Market Composite Index.