In early trading on July 3rd, communication stocks including optical modules and switches were active. Ruijie Networks Co.,Ltd. (SHE: 301165) briefly hit the daily limit-up in pre-market trading and is currently up over 14%. Eoptolink Technology Inc.,Ltd. (SHE: 300502) rebounded 6%, while shares of Liante Technology, Taichenguang, Zhaolong Hulian, and others rose more than 3%.
Among popular ETFs, the ChiNext Artificial Intelligence ETF (159363), which focuses on optical module and CPO (Co-Packaged Optics) companies, saw its on-market price rebound over 2%, with real-time turnover exceeding 500 million yuan. The fund experienced a net subscription of 40 million units during the session.
Positive Earnings News Sparks Activity
On the evening of July 2nd, Ruijie Networks Co.,Ltd. released its first-half performance forecast, projecting net profit attributable to shareholders for the first half of 2026 to be between 310 million and 430 million yuan, representing a year-on-year increase of 46.27% to 102.90%. The company attributed the significant growth in its data center switch business for internet clients as the core driver for the improved operating performance during the period.
Analysts Foresee Continued Growth
Previously, GF Securities stated in a research report that it expects the performance of leading optical module companies and their upstream suppliers to show steady sequential growth in the second quarter. On the demand side, factors such as overseas computing power expansion, network architecture upgrades, and product generation improvements are converging, with 800G products continuing to ship and 1.6T products accelerating in volume. On the supply side, shortages of core materials like PICs, DSPs, laser chips, and PCBs are expected to ease quarter by quarter, with some materials potentially seeing comprehensive improvement in the second half of the year. Overall, the optical module industry chain's earnings growth in Q2 appears promising.
Key Dates and Investment Strategy
Cao Xuchen, fund manager of the ChiNext Artificial Intelligence ETF (159363), highlighted two upcoming time points for close attention. From a fundamental perspective, the quarterly reports of cloud service providers from July 28th to 30th will validate demand trends and capital expenditure plans. On the sentiment front, the listing of SK Hynix ADRs on July 10th could act as a catalyst for market anticipation. The strategy prioritizes large-cap, fundamentally solid core industry leaders, with the key consideration being to enhance holding patience, which may lead to a higher probability of success in the next market upswing.
ETF Composition and Performance
The ChiNext Artificial Intelligence ETF (159363) and its off-exchange feeder funds (Class A: 023407, Class C: 023408) focus on leading optical module and CPO companies. The underlying index has a combined weighting of approximately 40% in Zhongji Innolight Co.,Ltd. (SHE: 300308), Eoptolink Technology Inc.,Ltd. (SHE: 300502), and Suzhou Tfc Optical Communication Co.,Ltd. (SHE: 300394), positioning it as a core representative of AI computing power. Additionally, the latest size of the ChiNext Artificial Intelligence ETF (159363) exceeds 7.3 billion yuan, with an average daily turnover over the past six months surpassing 900 million yuan, leading comparable ETFs tracking the same index in both size and liquidity.
Investment Considerations
Investors should be aware of applicable fees. For the ETF, subscription or redemption agents may charge a commission of up to 0.5%. On-market trading fees are subject to the rates charged by securities firms, and no service fees are levied. For the feeder funds, Class C shares of the ChiNext AI ETF feeder fund do not charge a subscription fee. A redemption fee of 1.5% applies for holdings under 7 days, and 0% for 7 days or more, with a 0.3% service fee. For Class A shares, subscription fees are 1% for amounts below 1 million yuan, 0.6% for 1-2 million yuan, and a flat 1000 yuan per transaction for 2 million yuan or more. The same redemption fee schedule applies as for Class C, and no service fee is charged.
Risk Disclosure
The ChiNext Artificial Intelligence ETF (159363) passively tracks the ChiNext Artificial Intelligence Index, which has a base date of December 28, 2018, and was published on July 11, 2024. The performance of the index's historical backtest does not indicate its future performance. Constituent stocks mentioned are for illustrative purposes only; descriptions of individual stocks are not investment advice of any form and do not represent the holdings or trading intentions of any fund managed by the asset manager. According to the fund manager's assessment, the ChiNext Artificial Intelligence ETF (159363) carries a risk rating of R4 (Medium-High Risk) and is suitable for investors with an Aggressive (C4) or higher risk profile. Suitability matching opinions should be based on the sales institution's assessment. Any information presented is for reference only, and investors are responsible for their own investment decisions. The views, analysis, and forecasts herein do not constitute investment advice of any kind, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment involves risks. Past performance of a fund does not guarantee its future results, and the performance of other funds managed by the same manager does not constitute a guarantee of the fund's performance. Invest with caution.
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