On April 21, as of 9:41 AM, the artificial intelligence (AI) sector experienced a decline, with the ChiNext AI Index falling by 2.35%. Among the constituent stocks, segments related to computing power such as CPO optical modules weakened significantly. Ruijie Networks led the drop with a decline of 10.31%, followed by Tongniu Information down 5.78%, and Glodon decreasing by 5.73%. Tianfu Communication fell more than 3%.
For popular ETFs, the ChiNext AI ETF HuaBao (159363), which has over 45% exposure to optical modules, saw its on-market price drop over 2%. Real-time turnover exceeded 3.5 billion yuan, with net subscriptions surpassing 30 million units.
In the optical communications sector, according to a CCTV report, several domestic optical fiber manufacturers reported substantial growth in production and sales during the first quarter. Prices for certain product specifications surged by as much as 650%, with order backlogs extending into the first quarter of 2027. Kaiyuan Securities believes that amid the large-scale deployment of AI applications and a sharp increase in token usage, the construction of AI infrastructure will continue, and demand for computing power is expected to remain strong. Key segments of the computing power industry chain, such as optical communications, continue to face capacity constraints among leading manufacturers.
Institutions suggest that valuations for leading optical module companies may still have room to rise. GF Securities noted that while recent valuations of leading optical module firms have seen some recovery, their projected 2027 price-to-earnings ratios remain relatively low. Historically, valuation benchmarks for top optical module companies have typically ranged from 15 to 20 times forward P/E ratios. The firm remains optimistic about the sustainability of the current optical module uptrend, particularly emphasizing the competitive barriers, material sourcing capabilities, and long-term product strategies of leading companies, which could support further valuation increases.
For investors looking to capture opportunities in both optical module CPO and AI applications, it is advisable to focus on the ChiNext AI ETF HuaBao (159363) and its corresponding off-market share classes (Class A: 023407; Class C: 023408). The underlying index allocates approximately 70% of its holdings to computing power—including leading optical module and CPO companies—and about 30% to AI applications, offering exposure not only to core computing power but also to representative AI application players.
ETF fee details: When subscribing for or redeeming fund shares, subscription and redemption agents may charge a commission of up to 0.5%. On-market trading fees are subject to the rates set by securities firms, and no sales service fees are applied.
Linked fund fee details: The ChiNext AI ETF Series Link Fund Class C does not charge a subscription fee. A redemption fee of 1.5% applies for holdings under seven days, and no fee for seven days or more. A sales service fee of 0.3% is charged. For Class A, subscription fees are 1% for amounts below 1 million yuan, 0.6% for 1–2 million yuan, and a flat fee of 1,000 yuan per transaction for amounts above 2 million yuan. The redemption fee structure is the same as for Class C, and no sales service fee is charged.
Risk disclosure: The ChiNext AI ETF HuaBao passively tracks the ChiNext AI Index, which has a base date of December 28, 2018, and was launched on July 11, 2024. The index's annual performance from 2021 to 2025 was 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively. The composition of the index is adjusted according to its rules, and past performance does not indicate future results. Constituent stocks mentioned are for illustrative purposes only and do not constitute investment advice or reflect the holdings or trading activities of the fund manager. The fund manager assesses this fund as R4—medium to high risk, suitable for aggressive (C4) and above investors. Suitability assessments should be confirmed with selling institutions. All information provided is for reference only, and investors are responsible for their own investment decisions. Views, analyses, and forecasts do not constitute investment advice, and no liability is accepted for 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 ensure this fund’s performance. Invest with caution.
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