**STAR Market Policy and Industry Updates:** On December 5, Moore Threads Technology Co., Ltd. officially debuted on the Shanghai Stock Exchange's STAR Market, becoming China's first full-feature GPU company listed on the A-share market. Seizing the historic opportunity in AI development, Moore Threads will allocate its IPO proceeds primarily to R&D for next-generation self-sufficient AI training-inference integrated chips, graphics chips, and AI SoC chips. These initiatives aim to solidify and expand the company's technological leadership in AI computing power and graphics processing, building a more comprehensive and globally competitive product ecosystem to support intelligent transformation across industries. Moore Threads' successful listing highlights the strong policy and market support for high-tech and hard-tech enterprises under national strategic priorities. (Mentioned stocks are for illustrative purposes only and not investment advice.)
**Analysis:** Since the introduction of the STAR Market's "1+6" policy measures, the Shanghai Stock Exchange has focused on reform, enhancing institutional inclusivity and adaptability to facilitate listings for hard-tech firms and improve capital market functions. As of December 5, 43 IPO applications were accepted this year, significantly surpassing last year's total, alongside 106 refinancing and 34 M&A filings.
Amid rising anti-globalization trends, self-sufficiency demands urgency. The STAR Market, with its distinct hard-tech focus, prioritizes sectors like semiconductor chips, emerging software, biopharma, and smart manufacturing, reflecting China's advanced manufacturing rise. ETFs such as the STAR Semiconductor ETF (588290), STAR Information Technology ETF (588260), and STAR 50 ETF (588280) warrant long-term attention.
**Market Review and Capital Flows:** Last week, the STAR Market rebounded, with gains in semiconductors, IT, biopharma, and new materials. The top five sectors—electronics, biopharma, power equipment, computers, and machinery—accounted for 88.8% of the market's total capitalization. ETF inflows tracked STAR-related indices at RMB 3.04 billion weekly, though year-to-date outflows reached RMB 94.03 billion.
**Sector Insights:** - **Next-Gen IT:** Centered on semiconductors, the sector rebounded. Moore Threads listed at RMB 114.28/share, surging 468% on debut with an RMB 80 billion raise for AI chip R&D. Rival Muxi Technology launched its IPO at RMB 104.66/share, backed by the National AI Industry Investment Fund, signaling scaled financing in domestic GPUs. AI computing demand exceeded expectations, with AWS's Trainium3 chip boosting performance 4x, driving optical module and memory chip needs. Semiconductor equipment sales rose 11% YoY in Q3, benefiting from wafer fab expansions.
- **Advanced Manufacturing:** A key strategic industry, it drives China's manufacturing competitiveness. Domestic demand rebounded, with 20,027 excavators sold in November 2025 and 103,975 exported, fueled by replacement cycles and overseas infrastructure. The 2025–2028 period may see a prolonged, gradual demand surge. Overseas recovery aligns with Fed rate cuts, potentially peaking in 2026. Localization progresses in machine tools and robotics, with Zhijin Robotics announcing its 5,000th general-purpose humanoid robot, marking commercialization strides.
- **Biopharma:** Innovation-driven trends persist, with global competitiveness, overseas expansion, and profitability in focus. Improving fundamentals in R&D pipelines, orders, and earnings are evident. Traditional Chinese medicine and medical devices also show recovery potential.
**HuaAn STAR Market ETFs:** - **STAR IT ETF (588260):** Tracks the STAR Information Technology Index (000682), comprising 50 leading firms in next-gen networks, core electronics, AI, and cloud services. - **STAR 50 ETF (588280):** Reflects the performance of 50 high-liquidity, large-cap STAR Market constituents since its 2020 launch. - **STAR Semiconductor ETF (588290):** Focuses on semiconductor materials, design, manufacturing, and testing.
**Risk Disclosure:** Index compositions and weightings may change. These equity ETFs carry higher risk and return potential, targeting index constituents. Past performance doesn’t guarantee future results. Investors should review fund documents carefully.
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