Beijing Stock Exchange 50 Index, a gauge of early-stage innovative companies listed in the capital, has outperformed its larger and tech-heavy peer by 12 percentage points this quarter. On Monday, the index rose 3.1%, with gains from an October low of over 19%. This measure has been a bright spot in China’s equities market, despite a broader slump.

The strong rebound on the Beijing board can be attributed to several factors. Firstly, the exchange allows for a wider fluctuation range of 30% for its constituents in either direction compared to a span of as much as 20% for the Shanghai and Shenzhen gauges. Secondly, investors have shown light positioning in these companies and regulators are considering including eligible securities into the CSI cross-market index system, which is serving as catalysts for growth in this area of the market.

The largest exchange-traded funds tracking the index have assets of around 228.8 million yuan ($31.9 million), indicating that investors are showing interest in these companies. The Beijing exchange was launched two years ago with the aim of helping small firms raise funds and making China’s financial markets more multifaceted. With its focus on early-stage innovation, it has become an attractive option for investors looking to tap into China’s growing technological sector.