"Star Market Daily" reported on October 12th (Reporter: Guo Hui) that ETF products tracking the STAR50 have for the first time held over 5% of the domestic shares of Semiconductor Manufacturing International Corporation.

Semiconductor Manufacturing International Corporation announced after trading on October 11th that E Fund Management Co., Ltd., under E Fund, increased its shareholding in Semiconductor Manufacturing International Corporation by about 9.61 million shares. After the increase, it holds a total of 0.1087 billion domestic shares, accounting for 5.47% of its domestic total share capital and 1.36% of the total share capital.

It is understood that E Fund STAR50 ETF is an ETF listed and traded on the Shanghai Stock Exchange, closely tracking the underlying index, the STAR50 Component Index, aiming to minimize tracking deviation and tracking error as investment objectives.

The fund mainly adopts full replication, that is, constructing a fund stock investment portfolio according to the composition and weight of the underlying index, and adjusting it according to changes in the composition and weight of the underlying index. Semiconductor Manufacturing International Corporation announced that it is a constituent stock of the STAR50 Index, and the fund's holding or change in holdings of the company's stocks is based on the fund's investment strategy.

E Fund STAR50 ETF's increase in holding of Semiconductor Manufacturing International Corporation reflects the recent significant increase in market cap of Semiconductor Manufacturing International Corporation, driving up the weight of this constituent stock in the STAR50 and related ETF products. It is also related to the increasing popularity among market investors of allocating STAR Market assets through ETFs.

According to the latest data from the Shanghai Stock Exchange, the total scale of the latest Star Market index products has approached 300 billion yuan, with the total scale of the Star 50 index products surpassing the 200 billion yuan mark, a growth rate of over 50% compared to the beginning of the year, ranking second among domestic stock indexes (second only to the CSI 300 index).

From October 8th to October 11th, a total of four trading days, the net inflow of funds for the E Fund Star 50 ETF reached 11.524 billion yuan.

Yang Delong, chief economist of Foresea Open Source Fund, told the star Market Daily that the Star Market ETF has shown significant flexibility recently, attracting more subscriptions, reaching a new high scale, reflecting a strong willingness of investors to enter the market; at the same time, the size of ETF product allocations and the market value of the tracked index components are related. If individual stock prices rise significantly, the proportion of corresponding allocations in ETF products will also increase.

The star Market Daily noted that the historical holdings of ChinaAMC Shanghai A50 ETF by E Fund Star 50 ETF have been increasing each quarter.

ETF products are becoming an important channel for investors to allocate holdings in companies like Semiconductor Manufacturing International Corporation. As of the end of the first half of this year, among the top ten shareholders of Semiconductor Manufacturing International Corporation, four institutional shareholders are ETF funds, including Huaxia ChinaAMC Securities Star 50 Component ETF, E Fund Star 50 ETF, Huaxia National Semiconductor Chip ETF, and Huaxia SSE 50 ETF.

Since the beginning of this year, as the Shanghai Stock Exchange implemented the 'Eight Measures for the STAR Market', it has been continuously building the STAR Market index system and its investment market, initially establishing a system covering scale, themes, strategies, and other types of STAR Market indexes. Market views believe that the STAR Market index varieties continue to enrich, expanding investors' investment channels, while also reducing investment thresholds and risks.