Core Viewpoint - The expansion of risk management tools in the STAR Market is expected to accelerate with the implementation of the "1+6" policy measures by the China Securities Regulatory Commission (CSRC) [1] Group 1: Policy and Regulatory Developments - The CSRC has issued opinions to enhance the inclusiveness and adaptability of the STAR Market, focusing on the introduction of more STAR Market ETF options and futures options [1] - The emphasis on expanding risk management tools is a key aspect of the STAR Market reform, aimed at attracting long-term capital [1][3] Group 2: Current Financial Instruments - The launch of the STAR 50 ETF options on June 5, 2023, marked the introduction of the first on-exchange options product based on the STAR 50 Index, which includes both call and put options [2] - The STAR 50 ETF options have seen significant trading activity, with a cumulative trading volume of 153 million contracts for the Huaxia STAR 50 ETF options and 78 million contracts for the E Fund STAR 50 ETF options as of 2024 [2] Group 3: Market Dynamics and Future Trends - The introduction of STAR 50 ETF options has improved market pricing efficiency and attracted more investors, thereby enhancing the liquidity of the underlying ETF market [3] - The STAR Market has developed a multi-tiered index system, with a total of 88 STAR Market ETFs and a total scale exceeding 250 billion yuan as of mid-June 2025 [3] - There is a growing need for more derivative products to meet the risk hedging demands of various sectors, as the existing STAR 50 ETF options have limited coverage [3][4] Group 4: Recommendations for Future Products - Analysts suggest prioritizing the launch of STAR 50 index futures and options to meet institutional hedging needs, as well as considering options for STAR 100 and STAR 200 indices to cover mid-cap and small-cap tech stocks [4] - The development of industry-specific derivatives, such as semiconductor and AI ETF options, is recommended to mitigate sector volatility risks [4] - Future expansion of derivative products is expected to enhance the risk management framework of the STAR Market, attracting more market makers and institutional investors, thereby improving market liquidity and pricing efficiency [5]