On Wednesday, July 15th, the A-share market experienced volatile adjustments, with high-flying AI and hard technology stocks declining, while oversold sectors mounted a broad counterattack. The fintech sector saw widespread gains, with Yinxin Technology surging by the 20% daily limit, Gu'ao Technology rising over 12%, Wins Securities and Yinzhijie climbing more than 5%, Tonghuashun advancing over 3%, and East Money Information gaining more than 2%.
Regarding popular ETFs, after probing a new recent low the previous day, the largest ETF by scale tracking its benchmark, Fintech ETF Huabao (159851), fluctuated higher, closing up 2.07% in the secondary market. Funds have seen net inflows on 9 of the past 10 trading days, accumulating a net increase of approximately 183 million yuan.
Key Drivers for the Rebound
Synthesizing market information, the fintech sector's rebound today may be catalyzed by three primary factors.
Firstly, a rotation from high to low valuations. As high-flying sectors like AI correct, the oversold fintech sector naturally becomes a destination for capital rotating from high to low, with the rebound based on fund rebalancing activity.
Secondly, sentiment spillover from brokerages and valuation repair. The brokerage sector has recently strengthened, boosted by factors like mergers and acquisitions and earnings delivery. As a high-beta segment, fintech has followed suit, gaining valuation premiums as market sentiment diffuses into the sector.
Thirdly, accelerated inflows into broad-based ETFs, promising incremental liquidity. Broad-based ETFs are seeing renewed acceleration in inflows, and market trading activity is trending towards greater liveliness. This provides room for earnings elasticity for internet brokers and financial IT companies, with C-end momentum improving and B-end demand gradually being unleashed.
Analyst Perspective on Sector Prospects
It has been noted that the fintech sector is benefiting from multiple catalysts, with industry prosperity continuing its upward trend. Leading companies such as Tonghuashun, East Money Information, and Compass all reported significant year-on-year growth in both revenue and profit for the first quarter of 2026, reflecting robust downstream demand. Supported by both policy tailwinds and improving market sentiment, the financial IT sector may possess solid allocation value, with related leading stocks expected to continue benefiting.
Valuation Analysis
Regarding valuation, as of July 15, 2026, the fintech index has retreated over 41% from its high on August 25, 2025, indicating relatively sufficient technical adjustment. The index's dynamic price-to-earnings ratio stands at 45, at the 15th percentile of the past three years. Valuation levels have declined to near three-year historical lows. Against the backdrop of expectations for fundamental recovery and high liquidity, the sector's high-elasticity attributes may enhance its cost-performance ratio for allocation.
ETF Profile and Performance
Fintech ETF Huabao (159851) and its feeder funds (Class A: 013477, Class C: 013478) track an index heavily weighted in computer and non-bank financial sectors. It covers popular themes such as internet brokerage, financial IT, cross-border payments, and AI applications, combining attributes of financial cycles and tech growth. As of June 30th, the fund size of Fintech ETF (159851) exceeded 6.4 billion yuan, ranking first among the 8 ETFs tracking the same underlying index.
Investors should note that when subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission not exceeding 0.5%. Trading fees in the secondary market are subject to the rates charged by securities firms, with no sales service fee levied.
For the feeder funds, the subscription fee for Huabao CSI Fintech Theme ETF Feeder Fund A is 1.00% for amounts below 1 million yuan, 0.60% for 1 million (inclusive) to 2 million yuan, and a flat 1000 yuan per transaction for amounts of 2 million yuan (inclusive) and above. The redemption fee is 1.50% within 7 days, 0.50% for 7 days (inclusive) to 30 days, and 0.00% for 30 days (inclusive) and above; no sales service fee is charged. Huabao CSI Fintech Theme ETF Feeder Fund C charges no subscription fee; the redemption fee is 1.50% within 7 days and 0.00% for 7 days (inclusive) and above; the sales service fee is 0.30% per annum.
Fintech ETF passively tracks the CSI Fintech Theme Index. The base date for this index is June 30, 2014, and its release date is June 22, 2017. The index constituents are adjusted according to its compilation rules, and its back-tested historical performance does not indicate future index performance. The index constituents mentioned are for illustrative purposes only; descriptions of individual stocks do not constitute investment advice in any form nor represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses the risk rating of this fund as R3 - Medium Risk, suitable for Balanced (C3) and above investors. Any information appearing herein (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to readers, nor shall they bear any responsibility for direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Caution is advised in fund investment.
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