Due to potential disturbances from US-Iran geopolitical events, sentiment in the technology sector has faced short-term pressure. On March 2nd, the Sci-Tech Innovation AI ETF (589520), which focuses on the domestic AI industry chain, saw its market price fluctuate below the previous close, currently down 0.85%. However, it remains above all key moving averages and is attempting a third consecutive day of gains.
Among its constituents, China Aerospace Digital Mapping led gains by rising over 10%, followed by Transwarp Technology, which increased more than 6%. Fudan Microelectronics Group rose over 2%, while Wayside Technology and Lattice Semiconductor also traded in positive territory. In contrast, the remaining 25 stocks declined, with Anlogic Technology and Haitian Ruisheng leading losses by falling over 4%, thereby weighing on the index performance.
BOC Securities specifically highlighted a historic inflection point in token usage for domestic large language models. During the week of February 16th to 22nd, weekly token calls for Chinese models reached 5.16 trillion, surpassing the 2.94 trillion tokens for US models for the first time. Among the top five platforms by call volume, four were from Chinese manufacturers. Driven by both "performance going global" and "price competitiveness going global," domestic large models are expected to sustain growth. Against the backdrop of restricted supply of overseas computing chips, cloud service providers may increasingly favor deploying more cost-effective domestic computing clusters. Although short-term sentiment in the tech sector may be impacted by US-Iran geopolitical events, the long-term investment rationale remains intact, and the domestic computing chain still offers attractive value.
As a beacon of domestic substitution and sci-tech innovation self-reliance, the Huabao Sci-Tech Innovation AI ETF (589520) and its feeder funds (Feeder A: 024560, Feeder C: 024561) concentrate on the domestic AI industry chain. Its constituents include leading domestic GPU companies such as Cambricon, top domestic ASIC firms like VeriSilicon, and AI application leaders such as Kingsoft Office. The semiconductor sector accounts for nearly half of the portfolio weight, providing strong growth potential, while the software sector comprises over 30%, positioning it to benefit from potential catch-up rallies in AI applications. Furthermore, this ETF is a margin trading security, making it an efficient tool for gaining exposure to the domestic computing power theme.
ETF fee information: The Huabao Sci-Tech Innovation AI ETF does not charge a sales service fee. Subscription and redemption agents may charge a commission of up to 0.5%, which includes relevant fees collected by stock exchanges and registration institutions. Trading fees for on-market transactions are subject to the rates set by securities firms.
Feeder fund fee information: For the Huabao SSE Sci-Tech Innovation Board AI ETF Feeder Fund (Class A), the subscription fee is 1,000 RMB per transaction for subscriptions of 2 million RMB or more, 0.6% for subscriptions between 1 million RMB and 2 million RMB, and 1% for subscriptions below 1 million RMB. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more. No sales service fee is charged. For the Huabao SSE Sci-Tech Innovation Board AI ETF Feeder Fund (Class C), there is no subscription fee. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more. A sales service fee of 0.3% applies.
Risk disclosure: The Huabao Sci-Tech Innovation AI ETF passively tracks the SSE Sci-Tech Innovation Board Artificial Intelligence Index. The index base date is December 30, 2022, and it was launched on July 25, 2024. The index's annual gains/losses for 2023 and 2024 were 12.68% and 32.36%, respectively. The index constituents are adjusted according to its compilation rules, and its backtested historical performance is not indicative of future results. Individual stocks and index constituents mentioned are for illustrative purposes only; descriptions are not investment advice and do not represent the holdings or trading activities of any fund managed by the fund manager. The fund manager assesses the risk rating of the Huabao Sci-Tech Innovation AI ETF as R4 (Medium-High Risk), suitable for aggressive (C4) and higher risk-profile investors. Suitability assessments should be confirmed with the selling institution. All information presented is for reference only, and investors are solely responsible for their investment decisions. Furthermore, any views, analyses, or forecasts do not constitute investment advice to readers, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results, and the performance of other funds managed by the fund manager does not assure the performance of this fund. Invest with caution.
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