During early trading on June 3rd, the semiconductor and chip sector once again demonstrated strength, with gains across optical chips, memory chips, semiconductor materials and equipment, and computing power chips. Source Photonics surged over 16%, hitting a new historical high, while Montage Technology rose over 9%. Shijia Photon advanced more than 7%, and Hua Hong Semiconductor gained over 5%. Cambricon Technologies increased by more than 3%.
The in-market price of the Huabao Shanghai Sci-Tech Innovation Board Chip ETF (589190), which provides comprehensive exposure to the chip industry, climbed over 4% at one point and is currently up 3.44%, reclaiming its 5-day and 20-day moving averages.
AI Infrastructure Investment Outlook
A recent semiconductor industry outlook report from Bank of America indicates that artificial intelligence infrastructure construction is still in its early stages. Global investment in AI infrastructure is projected to potentially expand from the current approximately $1 trillion to between $3 and $4 trillion by 2030. Within this context, AI data centers, memory, semiconductor equipment, and analog chip industries are all poised to encounter new growth opportunities.
Analyzing Market Dynamics
Analysis suggests that despite recent market fluctuations, the underlying technology boom and industry trends remain intact. Leading companies with solid earnings support are expected to continue benefiting and could serve as key anchors to navigate the current period of high volatility. Industrial Securities advises maintaining focus on the most certain growth areas within the AI sector. For the domestic semiconductor supply chain, as the direction with the most significant potential for improving fundamentals over the medium to long term, strong consensus remains.
Targeting the Chip 'Super Cycle'
For investors positioning for the chip industry's 'super cycle', high-beta instruments are a preferred choice. Public information shows that the Huabao Shanghai Sci-Tech Innovation Board Chip ETF (589190) and its feeder funds (Class A 021224, Class C 021225) passively track the SSE Sci-Tech Innovation Board Chip Index. While providing balanced and comprehensive exposure across the chip industry chain, the fund allocates over 90% of its weight to core segments like integrated circuits and semiconductor equipment, reflecting its high concentration in hard technology and strong offensive characteristics.
Data source: Shanghai and Shenzhen Stock Exchanges, etc.
ETF fee note: When subscribing for or redeeming fund units, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees levied by stock exchanges and registration institutions. Feeder fund fee note: For the Huabao SSE Sci-Tech Innovation Board Chip ETF Feeder Fund A, the front-end subscription fee is 0.5% for amounts below RMB 1 million, 0.2% for amounts between RMB 1 million (inclusive) and RMB 2 million, and a flat RMB 1,000 per transaction for amounts of RMB 2 million (inclusive) and above. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days (inclusive) or more. The Huabao SSE Sci-Tech Innovation Board Chip ETF Feeder Fund C does not charge a subscription fee. Its redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days (inclusive) or more, with a sales service fee of 0.2%.
Risk Disclosure: The Huabao Sci-Tech Innovation Board Chip ETF passively tracks the SSE Sci-Tech Innovation Board Chip Index. The index base date is December 31, 2019, and its release date was June 13, 2022. This product is issued and managed by Huabao Fund. Distributing institutions do not bear responsibility for the product's investment, redemption, or risk management. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement, and other legal fund documents to understand the fund's risk-return characteristics and select a product appropriate for their own risk tolerance. The fund manager assesses this fund's risk rating as R4 - Medium-High Risk, suitable for investors with a suitability rating of C4 or above. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Past fund performance does not indicate future results. Funds carry risks, and investment requires caution. Sales agencies (including the fund manager's direct sales channels and other sales agencies) assess this fund's risk based on relevant laws and regulations. Investors should promptly pay attention to the suitability opinion issued by the fund manager. Suitability opinions from different sales agencies may not be entirely consistent. The fund product risk rating results issued by fund sales agencies shall not be lower than the risk rating result made by the fund manager. Differences may exist between the fund's risk-return characteristics as described in the fund contract and its risk level rating due to different considerations. Investors should understand the fund's risk-return profile and make investment decisions based on their own investment objectives, horizon, experience, and risk tolerance, bearing the associated risks independently. The China Securities Regulatory Commission's registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks, and investment requires caution.
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