The STAR 50 Index has been adjusting for quite some time, and on March 20, it fell again by 1.55%, reaching a new low for the year. Why has the STAR 50 Index dropped in this round? Let's first take a look at its background.
The STAR 50 is composed of 50 stocks with large market capitalization and good liquidity from the STAR Market, with the semiconductor industry accounting for nearly 70%. The top ten weighted stocks include Haiguang Information, SMIC, Cambricon, Lattice Semiconductor, Zhongwei Company, and Chipone Technology, among other &#34;hard tech&#34; leaders.
In simple terms, this highly concentrated industry distribution determines that its performance is deeply tied to the semiconductor sector. In the past month, geopolitical factors have fluctuated repeatedly, causing the semiconductor and other tech sectors to weaken, making it difficult for the STAR 50 to stand alone.
However, conversely, the STAR 50 is also the core carrier of the policy dividends and future development opportunities of the semiconductor industry. SMIC holds advanced process intellectual property rights, Zhongwei Company has achieved a global top-tier position in etching equipment, Cambricon possesses self-developed cloud AI chips, and companies like Lattice Semiconductor and Haiguang Information are also leaders in their respective niche fields.
In the context of the explosive demand for AI computing power, the long-term value of these companies will not be altered by short-term adjustments.
So the question arises, has the STAR 50 hit the bottom? From the index level, it has reached a new low for the year. However, it coincides with the disclosure period for annual and quarterly reports. Whether the STAR 50 can stop falling and stabilize depends crucially on whether the tech leaders can deliver performance results that support their stock prices. If the quarterly reports can keep up, then the current valuation can be filled by future growth, successfully exchanging &#34;time&#34; for &#34;space.&#34;
The STAR 50 ETF by E Fund (588080, connecting funds A/C/Y: 011608/011609/022895) closely tracks this index, with the latest scale nearing 40 billion yuan. The product has achieved an excess return of about 1% relative to the index over the past year, ranking first among similar ETFs with a scale of over 5 billion, with a tracking error of only 0.02% during the same period.
Risk Warning: Funds carry risks; investment requires caution

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The STAR 50 Index fell again by 1.55% on March 20, reaching a new low for the year. This index consists of 50 stocks with large market capitalization and good liquidity, mainly concentrated in the semiconductor industry. Despite being affected by geopolitical factors in the short term, leading to fluctuations and weakness in the technology sector, the STAR 50 remains the core carrier of policy dividends for the semiconductor industry. Whether it can stop falling and stabilize in the future depends on the performance of leading technology companies

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