Today, the electronics sector is leading the market, with net inflows from major funds exceeding 31.7 billion yuan by the time of writing. This sector has attracted the highest amount of capital among the 31 primary Shenwan industries.
In the ETF space, the Huabao Electronics ETF (515260), which aggregates core leaders in the electronics sector, saw its on-exchange price surge by 9.62%. Data shows that this ETF attracted 36.3 million yuan in a single day yesterday. Over the past 60 trading days, it has accumulated a significant inflow of 321 million yuan.
Among its constituent stocks, GigaDevice Semiconductor Inc. and Tongfu Microelectronics Co., Ltd. hit the daily limit up, while Naura Technology Group Co.,Ltd. also reached the limit-up. Topsec Technologies Group Inc. rose over 19%, Changchuan Technology gained more than 18%, with Samsung Group, Advanced Micro-Fabrication Equipment Inc. China, ACM Research (Shanghai), Inc., and Cambricon Technologies Corporation Limited also posting substantial gains.
Market Analysis and Institutional Views
Citic Securities pointed out that short-term shocks may alter trading patterns but cannot change the direction of domestic policy or the long-term trend of the technology industry. The recent decline in overseas markets has digested issues of concentration and leverage, while the A-share market differs structurally in terms of liquidity environment, trading congestion, and driving forces for gains. Compared to overseas markets, A-shares are experiencing a discount that does not fully align with their own risk structure.
Soochow Securities stated that the long-term upward trend of China's technology industry remains unchanged. With substantial capital inflows, institutions and long-term funds believe the current market range offers allocation value, and conditions for a market rebound are gradually maturing. Institutions generally view A-shares as sufficiently resilient, highlighting two key positive factors: widespread mid-term earnings pre-announcements showing significant growth, and the industrial and policy signals released at the 2026 World Artificial Intelligence Conference.
China International Capital Corporation (CICC) believes that A-shares may experience their best earnings period in the past five years this year, with solid half-year reports providing fundamental support. As the market enters the intensive disclosure period for half-year reports in July and August, strong fundamentals are expected to bolster market performance. China Galaxy Securities noted that risks in the technology sector have been significantly released at current levels, recommending focus on advanced packaging, wafer foundry, semiconductor equipment and materials related to capacity expansion, as well as the domestic computing power sector.
Fundamentals and Performance
As of July 20th, among the 50 constituent stocks of the index tracked by the Huabao Electronics ETF (515260), 23 listed companies have disclosed their 2026 interim earnings forecasts. Among these, 13 constituents, including BIWIN Storage Technology Co., Ltd., GigaDevice Semiconductor Inc., and Xiechuang Data, are expected to achieve year-on-year triple-digit growth in net profit attributable to the parent company. Memory chip leader Longsys is projected to achieve a net profit attributable to the parent company of 9.2 to 11 billion yuan for the first half of 2026, representing a year-on-year increase of 62,204% to 74,394%. AI server leader Industrial Fulian is expected to report the highest net profit attributable to the parent company, temporarily leading with up to 24.4 billion yuan.
Key Themes for the Electronics Sector
Price increases, artificial intelligence, and technological self-sufficiency are expected to be dominant themes throughout the year for the electronics sector.
The Huabao Electronics ETF (515260) and its feeder funds (Class A: 012550, Class C: 012551) passively track the Electronic 50 Index, focusing on the semiconductor, electronic components, and consumer electronics industries. It aggregates popular concepts such as PCB, MLCC, glass substrates, memory chips, and semiconductor equipment. Its major holdings include stocks like GigaDevice Semiconductor Inc., Cambricon Technologies Corporation Limited, Naura Technology Group Co.,Ltd., and Luxshare Precision Industry Co., Ltd..
Data indicates that the index tracked by the Huabao Electronics ETF (515260) is deeply linked to global technology leaders. As of the end of June, the weightings of the Apple, NVIDIA, and Google supply chains were 31.00%, 25.55%, and 18.98% respectively, positioning it to potentially benefit from the industrial expansion and technological innovation of these tech giants.
As of the end of June, the Huabao Electronics ETF (515260) had an asset size of 1.109 billion yuan, making it the larger of the two ETFs in the market tracking the same underlying index.
ETF Fee Information
ETFs do not charge sales service fees. Subscription and redemption agency institutions may charge commissions of up to 0.5%, which include relevant fees collected by stock exchanges and registration institutions. On-exchange trading fees are subject to the actual charges by securities companies.
Risk Disclosure
The Huabao Electronics ETF passively tracks the CSI Electronic 50 Index. The base date for this index is December 31, 2008, and it was published on July 22, 2009. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its historical backtest performance does not indicate future index performance. Individual stocks and index constituents mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute any form of investment advice and do not represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses the risk level of the Huabao Electronics ETF as R3 - Medium Risk, suitable for balanced (C3) and above investors. Suitability matching opinions are subject to the sales institution. Any information appearing in this article (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 predictions in this article do not constitute investment advice of any kind to the reader, nor is there any liability for direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment requires caution.
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