---
title: "Market fluctuations, the Science and Technology Innovation Index outperforms international benchmarks, Chinese technology assets inject stability into the global market"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/281830071.md"
description: "In the midst of market fluctuations, the Science and Technology Innovation Board Composite Index has outperformed international technology indices, rising 1.25% since the beginning of the year, making it the only index in A-shares to increase. Compared to the 1.75% decline during the US-Israel conflict, the Science and Technology Innovation Board Composite Index has shown significant stability. Industry insiders believe that the stability of Chinese technology assets stems from long-term strategic planning and policy support, which will become an important direction for global capital allocation in the future, helping investors achieve stable goals"
datetime: "2026-04-07T05:01:08.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/281830071.md)
  - [en](https://longbridge.com/en/news/281830071.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/281830071.md)
---

# Market fluctuations, the Science and Technology Innovation Index outperforms international benchmarks, Chinese technology assets inject stability into the global market

China Economic Reporter Sun Ruxiang and Xia Xin reported from Beijing

On April 7, the Science and Technology Innovation Index opened up 0.21%; as of 10 a.m., it reported 1657.11 points, up 1.56%. Since the beginning of the year, the Science and Technology Innovation Index has risen 1.25%, making it the only index among the four major A-share indices to show an increase.

Moreover, compared to international technology indices, the Science and Technology Innovation Index has also demonstrated significant stability during the Israel-Palestine conflict. For example, in the third phase of the conflict, the Nasdaq 100 and the Nasdaq Index fell by 5.02% and 5.17%, respectively, while the Science and Technology Innovation Index only dropped by 1.75%, significantly outperforming U.S. tech stocks.

Industry insiders stated that the exceptional stability of Chinese tech assets during external shocks such as the Israel-Palestine conflict in 2026 is not a short-term phenomenon, but rather an inevitable result of China's long-term strategic layout, independent upgrades in the tech industry, and deepening reforms in the capital market. During the 14th Five-Year Plan period, the stability, growth potential, and safety of Chinese tech assets will be further strengthened. In the process of restructuring global asset allocation, Chinese tech assets will become an indispensable allocation direction for global funds due to their unique stability advantages, continuously injecting stability into global assets and helping global investors achieve long-term and stable allocation goals.

**Three Core Indicators of Chinese Tech Assets Lead During Geopolitical Conflicts**

"Chinese tech assets, represented by the Science and Technology Innovation Index, have shown significant stability, growth potential, and safety amid recent global market fluctuations," said Yu Yao, an assistant professor at the School of Economics and Management at Beijing Jiaotong University, to the China Business Journal.

"Since the onset of geopolitical conflicts in 2026, stock markets in Europe, the U.S., and Japan have experienced increased volatility, while the Chinese tech sector has shown smaller fluctuations, shallower pullbacks, and faster recoveries, demonstrating strong resilience against risks. This stability stems from the domestic industrial chain being self-controllable, driven by domestic demand, and supported by a systematic policy framework, making it less susceptible to overseas sentiment transmission," Yu stated.

"Chinese tech assets have charted a relatively independent and stable trend, becoming a 'safe haven' in the global tech sector," said Lu Zhe, chief economist and co-director of the research institute at Soochow Securities, in a recent research report. From the phased performance during the Israel-Palestine conflict, the advantages of Chinese tech assets have been evident throughout the entire process.

On the first trading day after the outbreak of war, European markets weakened across the board, with Germany's DAX falling 2.56%, France's CAC40 down 2.17%, and the STOXX Europe 600 index down 2.67%. Japan's Nikkei 225 dropped 1.35%, and market panic spread rapidly. During the same period, the Shanghai Composite Index rose 0.47%, the ChiNext Index fell 0.49%, and the Science and Technology Innovation Index dropped 1.20%. Overall, A-shares showed significantly lower volatility compared to overseas markets; although the tech sector experienced slight adjustments, there was no irrational selling, and the capital support remained strong.

In the first phase of the conflict (from March 2 to March 10), geopolitical risks continued to escalate, and global assets entered a risk-averse mode. The Nikkei 225 fell a cumulative 7.82%, the STOXX Europe 600 index dropped 5.67%, France's CAC40 fell 6.10%, and Germany's DAX decreased by 5.20%, leading overseas markets into deep adjustments In contrast to the Chinese market, the Shanghai Composite Index fell by 0.95%, and the Science and Technology Innovation Board Composite Index dropped by 3.15%, with the pullback being much lower than that of major indices in Europe, America, and Japan, reflecting strong resilience against shocks.

During the second and third phases of the conflict (from March 10 to March 30), the market gradually digested geopolitical shocks, but overseas technology stocks continued to weaken, with the Nasdaq 100 and the Nasdaq Index plummeting by 5.02% and 5.17% respectively in the third phase, while the S&P 500 fell by 3.60%, with adjustment pressure continuing to be released. In contrast, Chinese technology assets stabilized first, with the Science and Technology Innovation Board Composite Index declining by only 1.75% in the third phase, significantly outperforming U.S. technology stocks; the ChiNext Index even achieved a 4.47% increase in the second phase, demonstrating characteristics of an independent market.

"From an overall cycle performance perspective, the cumulative decline, maximum drawdown, and volatility of Chinese technology assets during the conflict period all outperform similar global assets, fully validating their stability advantage," said Lu Zhe.

In fact, not only is the stability advantage evident, but Yu Yao believes that in terms of growth, Chinese technology companies are rapidly expanding and achieving technological breakthroughs in strategic emerging fields such as the digital economy, new energy, and artificial intelligence. In recent years, China has made significant progress in "choke point" technology fields such as integrated circuits, industrial software, and high-end manufacturing, promoting both industrial scaling and technological commercialization, which provides strong momentum for future performance growth of technology companies. The constituent stocks of the Science and Technology Innovation Board Composite Index have high growth expectations, allowing them to form an independent growth trend within the global technology sector.

From a safety perspective, China's capital market is gradually establishing a more complete and localized valuation system and regulatory framework, effectively reducing systemic market risks. Regulatory authorities are creating a more predictable institutional environment for the long-term development of technology companies by optimizing supporting systems for mergers and acquisitions, financing channels, and equity incentives. "Compared to some overseas markets that are in a phase of accumulating liquidity and valuation bubble risks, the valuation system of Chinese technology assets places greater emphasis on fundamentals and long-term value, demonstrating a higher margin of safety," Yu Yao stated.

**Continuously Injecting Stability into Global Allocation**

Looking ahead, Yu Yao believes that in the context of an unstable global economic recovery and ongoing geopolitical uncertainties, the scarcity of stability will become even more pronounced. Chinese technology assets, with their industrial autonomy, strategic support, and long-term growth potential, are expected to continue attracting global allocation funds. "As the competitiveness of China's technology industry improves and global pricing power gradually strengthens, the technology assets represented by the Science and Technology Innovation Board Composite Index are expected to occupy a more important position in global asset allocation, achieving a long-term trend of stability with upward momentum," Yu Yao said.

Lu Zhe also pointed out that the current global asset market is experiencing increased volatility, and the stability of traditional assets is declining, leading to an urgent demand from investors for low-volatility, high-growth, and high-certainty assets. For global investors, allocating Chinese technology assets not only allows them to capture the long-term dividends of China's technology industry upgrade but also leverages their stability advantage to diversify the risks of global asset portfolios and enhance the portfolio's resilience to volatility. "Under multiple shocks such as geopolitical conflicts, economic cycles, and liquidity changes, Chinese technology assets will continue to play a stabilizing role, providing robust support for global asset portfolios," Lu Zhe stated In this process, the Science and Technology Innovation Board Composite Index, as one of the four core broad-based indices of A-shares, provides an important tool for domestic and foreign investors to observe and share the dividends of China's new productive forces development.

Zhang Yulong, Chief Analyst of New Stock Strategy at CITIC Construction Investment Securities, believes that the Science and Technology Innovation Board Composite Index is highly concentrated in strategic emerging industries such as the new generation of information technology, biomedicine, and high-end equipment manufacturing, with a weight exceeding 90%, accurately reflecting China's industrial layout for technological self-reliance and strength. The constituent companies generally have high R&D investment, abundant patent reserves, and significant growth potential. The overall revenue and net profit of the sector are expected to maintain rapid growth by 2025, with continuous improvement in profit quality. The index's performance is highly synchronized with industrial trends, becoming an important barometer for the capital market to understand China's technological rise, driven by key themes such as semiconductor localization, explosive demand for artificial intelligence computing power, and accelerated commercialization of innovative drugs.

On the investment side, the Science and Technology Innovation Board Composite Index has upgraded from an "observation indicator" to an important asset allocation tool. Currently, a complete product line has been formed around this index, including ETFs, linked funds, and enhanced products, with a total scale reaching hundreds of billions, providing investors with a convenient channel to "quickly allocate to the Science and Technology Innovation Board."

"In the future, with continuous institutional innovation and the enrichment of index products, the Science and Technology Innovation Board Composite Index is expected to become an important bridge connecting domestic and foreign capital with China's technological innovation, showcasing the strength and potential of China's 'hard technology' in the global capital market," said Zhang Yulong.

(Editor: Xia Xin, Review: Li Huimin, Proofreading: Zhai Jun)

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