The fintech sector experienced an oversold rebound during the early trading session on the 10th, with internet brokers leading the gains. Yinzhi Jie surged over 11%, while Tonghuashun and East Money Information Co.,Ltd. advanced sharply by 7%. Compass and Wealth Trend rose 6%, and Wins also posted a significant increase of 6%.
Among popular ETFs, the largest fintech ETF by size, Huabao Fintech ETF (159851), climbed 3.5% during intraday trading, reclaiming its 20-day moving average. Trading volume expanded compared to the previous session, with real-time turnover exceeding 1.5 billion yuan. Following substantial net inflows of over 100 million shares the previous day, the fund continued to attract more than 40 million shares today.
According to a research report from Dongwu Securities, the fintech sector currently demonstrates multiple favorable factors across policy, market dynamics, technology, and valuation levels, highlighting prominent investment opportunities:
Policy Support: Dual Drivers of Compliance and Investment. Regulatory requirements explicitly mandate that securities firms' IT investments should not be less than 10% of their average net profit or 7% of revenue over the past three years, while also encouraging upgrades to core systems using domestic technologies. Additionally, data from iResearch indicates continuous growth in the fintech market scale, with projected investments by domestic financial institutions reaching 6.515 trillion yuan by 2028.
Market Dynamics: Resurgent Activity Boosts Performance. The average daily trading volume for A-shares in 2025 increased 63% year-over-year to 73 trillion yuan, driving strong earnings growth for consumer-facing companies such as Tonghuashun (attributable net profit +76%) and East Money Information Co.,Ltd. (+26%). Although business-facing segments faced budget constraints, demand for core system replacements remains robust, with leading companies demonstrating resilience.
Technological Advancements: AI and Domestic Innovation Create New Opportunities. Technological empowerment is shifting from cost reduction and efficiency gains to direct revenue generation. For instance, Hang Seng Electronics launched the WarrenQ large model based on DeepSeek, Tonghuashun's "Wen Cai" improved paid conversion rates, and core domestic systems like Vertex A5 have been implemented in over ten securities firms.
Valuation Perspective: The CSI Fintech Theme Index has retreated to near one-year lows, with valuations sufficiently digested. Dongwu Securities stated that the fintech sector currently exhibits low fundamentals and valuations, presenting significant allocation value. With policy support, economic stabilization, and accelerating digital transformation demands among securities firms, the fintech market is gradually entering an upward trajectory.
To capture fintech opportunities from multiple angles, investors may focus on Fintech ETF (159851) and its feeder funds (Class A: 013477, Class C: 013478). The underlying index heavily weights computer and non-bank financial sectors, comprehensively covering internet brokers, financial IT, cross-border payments, AI applications, and other popular themes. Fintech ETF (159851) holds over 10 billion fund shares, ranking first among eight ETFs tracking the same target index.
Data source: Shanghai and Shenzhen Stock Exchanges.
MACD golden cross signals have formed, indicating favorable momentum for these stocks.
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