Core Viewpoint - The manager of Lobo Fund, Han Yuchen, expresses optimism about the medium to long-term performance of the A-share technology market, highlighting the Shanghai Stock Exchange Science and Technology Innovation Board Composite Price Index as a potentially valuable index for investment [1]. Group 1: Index Characteristics - The index includes nearly all eligible listed companies on the Science and Technology Innovation Board, achieving a market capitalization coverage of nearly 100%, which allows it to comprehensively reflect the overall performance of these companies [1]. - The constituent stocks of the index are highly focused on "hard technology" industries, primarily in electronics (especially semiconductors), pharmaceuticals, machinery, and computers, showcasing high R&D intensity and significant innovation capabilities [1]. - The Science and Technology Innovation Board was established to support technological innovation and deepen capital market reforms, receiving various policy supports that create a favorable environment for corporate development [1]. - The index includes a balanced distribution of large, medium, and small-cap companies, reflecting the innovative growth characteristics of the Science and Technology Innovation Board [1]. Group 2: Quantitative Enhancement Potential - The feasibility of using the index for quantitative enhancement is high, as its individual stocks, styles, and industry distribution are relatively diversified and balanced, providing a broad selection pool for stock picking [2]. - This diversified distribution is beneficial for quantitative models to leverage Alpha generation capabilities [2].

Group 1 - The A-share market's three major indices closed mixed, with the Shanghai Stock Exchange STAR Market Composite Price Index down by 0.66% to 1412.82 points, with a trading volume of 217.557 billion yuan [1] - The STAR Market Composite Price Index has increased by 16.08% in the past month, 24.45% in the past three months, and 31.01% year-to-date [1] - The index consists of securities from eligible STAR Market listed companies and reflects the overall performance of these companies, with a base date of December 31, 2019, set at 1000.0 points [1] Group 2 - The top ten weighted stocks in the STAR Market Composite Price Index include Cambrian Biologics (5.18%), Haiguang Information (4.44%), and SMIC (2.25%) among others [1] - The index's holdings are entirely composed of stocks listed on the Shanghai Stock Exchange, with a 100% market share [1] Group 3 - In terms of industry composition, the STAR Market's sample holdings are dominated by Information Technology (50.46%), followed by Industrial (23.76%), and Healthcare (17.06%) [2] - The index includes stocks that have been listed for at least three months for the top ten by average total market capitalization, while others are included after one year [2] - Stocks under risk warning are removed from the index starting the next trading day after the second Friday of the month following the warning, while those that have their warnings lifted are included from the next trading day after the second Friday of the month following the removal [2]

Group 1 - The A-share market's three major indices closed mixed, with the Shanghai Stock Exchange Sci-Tech Innovation Board Composite Price Index down 0.33% at 1175.06 points, with a trading volume of 102.415 billion [1] - The Sci-Tech Innovation Board Composite Price Index has increased by 3.76% in the past month, 2.20% in the past three months, and 8.60% year-to-date [1] - The index consists of securities from eligible companies listed on the Sci-Tech Innovation Board, reflecting the overall performance of these companies, with a base date of December 31, 2019, and a base point of 1000.0 [1] Group 2 - The top ten weighted stocks in the Sci-Tech Innovation Board Composite Price Index include Haiguang Information (4.65%), Cambrian (3.38%), SMIC (2.53%), Kingsoft Office (1.86%), and others [1] - The index's holdings are entirely composed of stocks from the Shanghai Stock Exchange, with a 100% share [1] - The industry composition of the index shows that Information Technology accounts for 49.35%, Industry for 24.48%, and Healthcare for 17.77%, among others [2]