The semiconductor sector is experiencing a powerful rebound today. The on-market price of the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190), which provides comprehensive exposure to the chip industry, has risen by 2.84%. Advanced Micro-Fabrication Equipment Inc. China gained over 4%, while BIWIN Storage Technology Co., Ltd. and Montage Technology Co., Ltd. both advanced more than 3%. Hygon Information Technology Co., Ltd. rose over 2%, and Cambricon Technologies Corporation Limited increased by more than 1%. Following a two-day pullback influenced by external markets, over 40 million yuan flowed into the sector via this ETF.
Overnight, U.S. chip stocks saw a technical recovery, with the Philadelphia Semiconductor Index surging 5.61%. Micron Technology led the gains, rising 9.9%, while industry leaders like NVIDIA and Broadcom Inc. also moved higher.
NVIDIA CEO Jensen Huang commented that SK Hynix's plan to double its wafer capacity by 2030 is insufficient. SK Group Chairman Chey Tae-won stated on June 2nd that SK Hynix aims to double its wafer capacity within five years, suggesting the memory chip supply bottleneck may persist until 2030. This follows an announcement the previous day regarding a multi-year technical collaboration between NVIDIA and SK Hynix to jointly develop memory for computing platforms like the NVIDIA Vera Rubin AI supercomputer and NVIDIA Vera CPU, and to apply AI technology to semiconductor chip design and manufacturing.
Analysis from China Merchants Securities suggests the recent short-term market correction was merely a liquidity shock, not a sign of an AI bubble bursting. From a medium-term perspective, a shift in market style or leadership is not imminent. As the market enters the mid-year earnings reporting window in late June, technology sectors with strong earnings visibility and the highest growth momentum are expected to maintain their outperformance.
Key Considerations for Investors
For investors seeking exposure to the chip industry's potential 'super cycle', high-beta instruments like the 20% price-limit stocks offer a targeted approach. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) and its feeder funds (Class A: 021224, Class C: 021225) passively track the SSE STAR Market Chip Index. While providing balanced, full-chain exposure to the semiconductor industry, the fund maintains a high concentration (over 90% weight) in core segments like integrated circuits and semiconductor equipment, reflecting its high hard-tech content and strong offensive characteristics.
Important Fund Information
Investors should note that subscription and redemption agents may charge a commission of up to 0.5% for fund share transactions, which includes relevant fees levied by stock exchanges and registration institutions. For the feeder funds: Class A shares carry a front-end load subscription fee (0.5% for amounts below 1 million yuan, 0.2% for 1-2 million yuan, and a flat 1000 yuan for 2 million yuan and above). Redemption fees are 1.5% for holdings under 7 days and 0% for 7 days or more. Class C shares have no subscription fee. Their redemption fee is also 1.5% for holdings under 7 days and 0% for 7 days or more, with a 0.2% annual service charge.
Risk Disclosure
The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND passively tracks the SSE STAR Market Chip Index (base date: Dec 31, 2019; launch date: June 13, 2022). The fund is issued and managed by Huabao Fund. Distributors are not responsible for the product's investment, performance, or risk management. Investors must carefully read the fund's legal documents, including the Fund Contract, Prospectus, and Key Facts Statement, to understand its risk-return profile and select a product matching 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 future results. Past performance is not indicative of future returns. Fund investments carry risks; capital is at risk. Distributors provide their own risk assessments based on relevant laws; investors should note the fund manager's suitability opinion. Distributor risk ratings may differ and cannot be lower than the fund manager's rating. The risk-return characteristics described in the fund contract and the risk rating may differ due to varying assessment criteria. Investors should understand the fund's risks and returns, and make investment decisions based on their own objectives, time horizon, experience, and risk tolerance. The China Securities Regulatory Commission's registration of this fund does not indicate a judgment or guarantee of its investment value, market prospects, or returns.
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