Capital flows are driven by logic and consistently seek optimal destinations. Throughout this year, market hotspots have rotated frequently, yet the primary direction of capital allocation has remained clear and focused. Wind data reveals that as of September 11, 2025, compared to the end of 2024, five indices have experienced explosive growth in their tracking ETF assets under management, surging over 900% and breaking through the 100 billion yuan threshold, establishing themselves as the definitive primary targets for incremental capital this year.
These five indices are highly representative, encompassing popular technology indices such as STAR AI and Robot Industry, as well as Hong Kong Stock Connect Innovation Drugs, alongside cyclical undervalued indices including Non-bank Financials and Chemicals. They not only structurally cover both high-growth and stable undervalued characteristics but also demonstrate exceptional attractiveness in terms of capital flows.
**STAR AI: PEG in Reasonable Territory**
The STAR AI Index focuses on leading artificial intelligence companies within the STAR Market, covering core segments including AI chips, algorithms, big data, and cloud computing. The 30 constituent stocks primarily consist of technology innovation enterprises with high R&D investment and strong technological barriers, such as Cambricon and SenseTime. From a valuation perspective, although the sector's overall PE ratio is at historical highs, considering high growth expectations and scarcity, most PEG ratios remain within reasonable ranges. As of September 11, the STAR AI Index's expected 2025 PEG stands at 0.99, indicating that sector growth and valuation are essentially matched. With accelerating domestic AI industrialization and continued policy support, related enterprises are expected to maintain high revenue and profit growth. Long-term, artificial intelligence as the core of a new technological revolution offers vast growth potential.
**Robot Industry: Dual-Driven by Policy and Technology**
The Robot Industry Index covers industrial robots, service robots, core components, and system integration segments. Representative companies include Estun and Siasun Robot, spanning the entire industrial chain from upstream servo systems to downstream intelligent manufacturing, with 50 constituent stocks. Current sector valuations are also at historical highs, reflecting strong market expectations for future growth in the robotics industry. Industry consensus expects the robotics sector to experience an "intelligence explosion" in 2025-2026, with policies explicitly supporting "Robot+" application scenario expansion and accelerated commercialization. Under dual policy and technological drivers, the index's investment potential is viewed favorably.
**Hong Kong Stock Connect Innovation Drugs: Valuations Remain at Low Levels**
This index comprises innovative pharmaceutical companies accessible through Hong Kong Stock Connect, including biopharmaceuticals, gene therapy, and CXO subsectors, encompassing 29 constituent stocks. Representative companies such as WuXi Biologics and Innovent Biologics mostly possess international R&D capabilities and pipeline reserves. The Hong Kong innovation drug sector has undergone two years of deep adjustment, with current valuations at historical lows and high safety margins. As of September 11, the trailing twelve-month PE ratio sits at the historical 29th percentile. With the Federal Reserve's rate-cutting cycle beginning and improving overseas liquidity, the innovation drug sector is poised for valuation recovery. Additionally, optimization of domestic medical insurance negotiation rules and frequent overseas licensing deals indicate industry fundamentals are bottoming out, with long-term potential worth anticipating.
**Hong Kong Stock Connect Non-bank Financials: PE Ratio Below 10x**
The Hong Kong Stock Connect Non-bank Index primarily covers non-bank financial institutions in the Hong Kong market, including insurance, securities, and asset management companies, such as AIA Group and Hong Kong Exchanges, comprising 36 constituent stocks. These enterprises demonstrate strong earnings stability and higher dividend yields, exhibiting typical low-valuation, high-dividend characteristics. As of September 11, the index's PE ratio stands at only 9.86x, with significantly attractive dividend yields. Against the backdrop of overall Hong Kong market recovery and continued southbound capital inflows, the non-bank sector combines both defensive qualities and elasticity. With deepening capital market reforms and advancement of policies such as Cross-boundary Wealth Management Connect, the sector is expected to experience dual appreciation in both performance and valuation.
**Specialized Chemicals: Benefiting from Anti-Involution Policies**
The Specialized Chemicals Index focuses on high-end specialized segments within the chemical industry, including new materials, fine chemicals, and new energy materials, featuring companies like Wanhua Chemical and Hualu Hengsheng among 50 constituent stocks. Most constituent stocks possess technical advantages and supply chain influence. The sector's current valuation remains at historically low levels, with PB ratio at the 42nd historical percentile. Anti-involution policies encourage chemical enterprises to transform toward high-end operations, developing advanced chemical materials and electronic chemicals. The constituent stocks of the CSI Specialized Chemical Industry Thematic Index include enterprises with advantages in high-end chemical fields, positioned to benefit from policy guidance by capturing higher value-added products and profit margins in premium segments, thereby driving index appreciation.
This year, the market has exhibited distinct structural characteristics: capital simultaneously pursues high-growth technology sectors while favoring low-valuation, high-dividend defensive varieties. These five indices precisely represent these two major directions, becoming the highest-consensus allocation choices among investors.
Regarding year-end market performance, most institutions maintain optimistic outlooks. Recent reports indicate that from a fund investment perspective, balanced style allocation is recommended, emphasizing investment opportunities in quality undervalued assets. Market dynamics are transitioning from "single standout performance" toward "multi-point flourishing," with sector rotation becoming more balanced, supporting long-term slow bull market logic.