Hard-tech enterprises on the STAR Market are delivering an impressive round of half-year results. As of August 19, the 88 listed companies that have disclosed their 2026 interim reports generated combined revenue of RMB 204.3 billion and net profits of RMB 18.9 billion, surging 32% and 154% year-on-year respectively.

On Friday, August 21, HuaBao Fund, a major player managing hundreds of billions in equity assets, officially listed the STAR 200 ETF HuaBao (589460) on the Shanghai Stock Exchange. Investors can now trade the fund as easily as buying and selling individual stocks.

STAR 200: One-Stop Access to Small-Cap, Growth, and Hard-Tech Opportunities

From hard-tech tracks to industrial restructuring, the STAR Market, now in its seventh year, is accelerating the development of new quality productive forces and cementing its role as a key pillar of China's capital markets. The STAR 200 is the representative index for small and mid-cap stocks on the board. Constituent stocks with market caps below RMB 10 billion account for the largest share at 49.18%, while those between RMB 10 billion and 50 billion represent 50.82%. The average market cap stands at RMB 13.22 billion, with a median of RMB 9.545 billion. The STAR 200 serves as a clear complement to the STAR 50 and STAR 100 indices, which focus on large-cap and mid-cap leaders respectively (Source: Wind, as of June 30, 2026).

Constituents of the STAR 200 span 13 Shenwan first-level industries, with electronics leading at 36.84% of market cap, followed by machinery and equipment (17.54%), pharmaceuticals and biotech (15.24%), and power equipment (10.86%). Compared to the STAR 100 and STAR 50, the STAR 200 offers a more balanced industry distribution, reducing the risk of over-concentration in any single sector (Source: Wind, as of June 30, 2026).

Additionally, the STAR 200 boasts a pronounced hard-tech profile, with strategic holdings centered on next-generation information technology, biotech, and high-end equipment manufacturing.

Strong Historical Performance: Higher Beta Since the September Rally

Since its base date, the STAR 200 has gained 98.94%, outperforming the ChiNext and CSI 300 indices over the same period. More notably, since the market rebound on September 24, 2024, the STAR 200 has climbed 262.56%, beating the STAR 100 (+255.53%) and STAR 50 (+243.35%) (Source: Wind, as of June 30, 2026).

Worth highlighting is that the STAR 200's R&D intensity (R&D expenses as a share of revenue) surpasses not only the STAR 100 and STAR 50 but also other major broad-based indices like the CSI 300 and ChiNext. In fact, 48.56% of STAR 200 constituents have R&D intensity exceeding 80%, well above the STAR 100's 38.21% and STAR 50's 19.46%. This strong technological orientation is poised to underpin robust future earnings growth, giving the index considerable upside potential (Source: Wind, 2026 Q1 corporate reports).

The debut of the STAR 200 ETF HuaBao (589460) on Friday, August 21, offers investors an efficient gateway to capture the high-growth dividends of small-cap hard-tech firms on the STAR Market.

Please note that recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should make rational decisions based on their own capital position and risk tolerance, with close attention to position sizing and risk management.

Regarding ETF fees: on-exchange trading costs are subject to actual charges by securities firms. When subscribing or redeeming fund units, agents may charge commissions up to 0.3%. For full fee details, refer to the fund's legal documents.

Risk Disclosure: The STAR 200 ETF HuaBao passively tracks the STAR 200 Index, with a base date of December 30, 2022, and a release date of August 20, 2024. The fund is issued and managed by HuaBao Fund, and distributors are not responsible for product investment or redemption obligations. Investors should carefully review the Fund Contract, Prospectus, and Fund Product Fact Sheet to understand the risk-return profile and select products suited to their own risk tolerance. The fund is rated R4 (medium-high risk) by the manager, suitable for aggressive (C4) and above investors. Actual risk ratings at distributors may vary. Sales institutions evaluate the fund's risk per applicable regulations, and investors should monitor the manager's suitability opinions, which may differ across institutions; however, distributor risk ratings cannot be lower than the manager's rating. The risk-return characteristics and risk ratings in the Fund Contract may differ due to varying factors. Investors should understand the fund's risk-return profile, consider their investment objectives, horizon, experience, and risk tolerance, and bear their own risks. Registration with the China Securities Regulatory Commission does not imply endorsement of the fund's investment value, market prospects, or returns. Performance of other funds managed by the manager does not guarantee this fund's results. Past performance is not indicative of future returns. Funds involve risk; invest with caution.