The market was mixed in the morning session, with the STAR 50 Index experiencing accelerated fluctuations and falling nearly 1%, breaking below the 10-day moving average during the session. From a weekly perspective, the index is currently in a pullback phase after a breakout. It is recommended to monitor whether the index can stabilize at the 1360 level.

CSC Financial believes that the technology sector also faces issues related to significant previous gains. Since the end of June, the ChiNext Index and the STAR 50 Index have risen by more than or close to 60%, accumulating certain high-level risks and profit-taking pressure. In response to recent disruptions in the technology sector and Sino-U.S. relations, a neutral approach is recommended in the short term, with vigilance against liquidity risks, while maintaining a long-term focus on the technology theme.

The STAR 50 ETF (588000) tracks the STAR 50 Index. The index's holdings include 68.77% in the electronics sector and 4.99% in the computer sector, totaling 73.76%, which aligns closely with the development directions of cutting-edge industries such as artificial intelligence and robotics. It also covers multiple sub-sectors such as medical devices, software development, and photovoltaic equipment, reflecting a high concentration of hard technology. From its current position, the STAR 50 Index remains near its base point. Referring to the historical trend of the ChiNext Board, its future growth potential is promising. Investors optimistic about the long-term development prospects of China's hard technology are advised to continue paying attention.

Related ETF: STAR 50 ETF (588000).