On February 17, a significant milestone was achieved with the launch of the first batch of 13 Science and Technology Innovation Board Comprehensive Index ETFsThis marked the first substantial expansion of broad-based ETFs in the Year of the Snake, signaling a robust initiation for the yearThe pace at which these ETFs entered the market was remarkably swift, following just 40 days after the announcement of the Shanghai Stock Exchange Comprehensive Index—also known as the "Sci-Tech Comprehensive Index"—which was officially released on January 20.

The expeditious rollout of these ETFs reflects the high expectations of investors and market participants toward this new composite indexIn the interim period from January 20 to February 12, the Sci-Tech Comprehensive Index experienced a notable growth of 8.89%, demonstrating its significant role as a "comprehensive representative" of the Sci-Tech Board marketThis positive trend has heightened anticipation among fund companies and investors for products linked to this index.

Interestingly, on the very first day of availability, some products witnessed a remarkable demand surge, colloquially known as “daylight” subscriptionsFor instance, according to a statement from CICC Fund, their new ETF, which was initially designated to collect funds from February 17 to February 21, had amassed subscriptions exceeding the maximum fund-raising cap of 2 billion shares (equivalent to 2 billion yuan) by the launch dateTo protect investors’ interests, the company promptly concluded the fundraising earlier than scheduled.

In terms of potential market impact, the formation of these 13 Sci-Tech Composite Index ETFs is anticipated to introduce up to 26 billion yuan in incremental funds into the A-share marketThis influx of capital cannot be underestimated given the current momentum.

The release of these 13 ETFs was executed by a consortium of 13 public fund institutions, including significant players such as EFund, Huaxia, Southern, Tianhong, Bosera, and Harvest Funds, among others

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Notably, eight of these institutions possess assets under management exceeding 1 trillion yuan, highlighting a solid interest from major players in the public fund sector.

Moving into the specifics, all but one of the 13 products received approval on January 22. A majority of institutions reported for the Sci-Tech Comprehensive Index ETFs, whereas a few focused on the Sci-Tech Pricing Index ETFsThe inclusion of Penghua's Sci-Tech Comprehensive Index ETF, which was approved later on February 9, in the synchronized launch affirmed a strategic alignment of product offerings.

The issuance limits were set at 2 billion yuan for each of the 13 products, with the offering periods ranging from five to twelve daysWhen fully expected amounts are calculated, these 13 broad-based ETFs could provide a total of 26 billion yuan, indicating a substantial boost in capital to the A-share market, fostering optimism among investors.

Interestingly, Bosera Fund indicated their comprehensive coverage of the majority of the index products linked to the Sci-Tech Board, such as the Sci-Tech Artificial Intelligence ETF and the Sci-Tech Entrepreneurship 50 ETFThey remain committed to enhancing their presence within the technology sector.

In a further testament to the enthusiasm within this market segment, a second batch of ETFs is scheduled to roll out shortly thereafterSix more public fund institutions, including Jiashi and Guotai, indicated plans for additional offerings, with GUOTAI ASSET MANAGEMENT CO., LTD. announcing the launch of their new Sci-Tech Comprehensive Index ETF on February 24, a mere week after the first batch.

How does one assess the value of the Science and Technology Comprehensive Index? Before the index was formally released, the Shanghai Stock Exchange had meticulously delineated its positioning compared to other indices like the Sci-Tech 50. The Sci-Tech Comprehensive Index aims to serve as an encompassing measure of the Sci-Tech Board, boasting a market capitalization coverage of nearly 97%, representing a broad spectrum of companies across the board

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On the other hand, the Sci-Tech 50 mainly targets larger companies, with a significantly lower market capitalization coverage of 45%.

According to market data, the composition of the Sci-Tech Comprehensive Index reflects a diverse mix of large, mid, and small-cap stocks, with an average market capitalization closely aligned with that of the overall Sci-Tech BoardThis index is critical as awareness of China’s technological asset value continues to surge, especially since the introduction of powerful technologies like DeepSeek, which gained tremendous popularity globally over the past holiday period, keeping the technological sector in sharp focusThe Sci-Tech 50 Index boasted 8.61% growth from February 5 to February 17.

The Sci-Tech Comprehensive has undeniably met expectations, recording an 8.31% rise since its introduction on January 20. This widespread interest coincides with calls for re-evaluating the worth of China's technological assetsBosera Fund highlights that this index is vital for understanding the overall market dynamics within the Sci-Tech Board, as its constituents boast well-distributed industry sectors, thus providing investors with a clearer perspective.

Furthermore, Penghua Fund maintains that the expansion of the ETF market in the Sci-Tech Board, complemented by policy enhancements and innovative options products, indicates a meaningful opportunity for additional capital inflow.

As of now, the total market capitalization of listed companies on the Sci-Tech Board has exceeded an extraordinary 6.82 trillion yuan, a clear sign of robust sectoral growthThe Shanghai Stock Exchange has laid the groundwork by establishing 26 different indices to represent a wide array of strategic themes and sizes within the Sci-Tech arena, effectively guiding funds to support the development of "hard technologies" and enhancing the capital market's contribution to bolstering China’s core technological innovations.

In highlighting the unique characteristics of the Sci-Tech Comprehensive Index, analysts have pointed out its notable allocation towards R&D expenditures

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