During the morning session on July 22nd, leading technology stocks continued their strong performance. Following a significant 9% surge yesterday, the Huabao Technology ETF (515000), which combines attributes of "hard tech beta + high-quality leader alpha," rose over 1.5% in the secondary market, reclaiming its 60-day moving average. Over the past three days, funds have accumulated net purchases totaling 220 million yuan.
Among its popular constituent stocks, the switch leader Ziguang Co., Ltd. (SZ: 000938), the advanced packaging leader Tongfu Microelectronics Co., Ltd. (SZ: 002156), and the computing power chip leader Rockchip Electronics Co., Ltd. (SH: 603893) all hit their daily limit-up. The IDC leader Xiechuang Data (SZ: 300857) surged over 10%, the communications equipment leader ZTE Corporation (SZ: 000063) gained over 8%, and the optical module leader Accelink Technologies Co., Ltd. (SZ: 002281) rose over 7%.
Catalysts and Market Sentiment
On the news front, Wall Street analysts have been vocal in advising that investors should maintain their holdings in AI hardware stocks despite market volatility. After several days of deliberation, Wall Street analysts now largely agree that the recently launched Chinese AI model, Kimi K3, will further drive demand for memory chips.
Bank of America recently noted that the latest open-source model releases, including the Chinese model Kimi K3 launched on July 16th, further validate their bullish thesis on memory chips. The API pricing for Chinese open-source large models is highly competitive; in contrast, Western model prices are 5 to 350 times higher. However, this reflects more on business model choices rather than a significant reduction in hardware costs.
The Chief Investment Officer for the Americas at UBS stated that the recent bear market entry of chip stocks does not reflect underlying oversupply concerns. They are also not worried about hyperscale cloud providers cutting AI capital expenditures, even if profits are not immediately visible and AI chip costs continue to rise. New AI models like Kimi K3 will bring more growth opportunities for AI hardware manufacturers, as competition is stimulating higher demand for chips.
J.P. Morgan also believes the recent decline in chip stocks is not the start of a prolonged downturn but rather a consolidation phase for the next upward move. The bank recently pointed out that the stock prices of chip companies have increasingly diverged from their fundamentals, while technical indicators also show "oversold" conditions, recommending an increase in holdings during the summer. The bank further anticipates that AI-driven tight supply and demand for DRAM will persist until 2028, with the Q2 earnings season acting as a catalyst for the next rally.
Focus on Leading Technology
For exposure to the technology bull market, focus on leaders! The Huabao Technology ETF (515000) and its feeder funds (Feeder A: 007873, Feeder C: 007874) select 50 large-scale, high-market-share, strong-growth, and high-R&D-investment listed companies from technology sectors such as electronics, computers, communications, and biotechnology within the Shanghai and Shenzhen markets. This portfolio represents the core assets of A-share technology leaders, combining the attributes of "hard tech beta" and "high-quality leader excess alpha."
Looking at its CSI secondary industry distribution, the CSI Technology Leaders Index has approximately 90% weight concentrated in three key directions: semiconductors, electronics, and communication equipment & technical services, indicating high purity. This means the index holdings are almost entirely focused on core technology areas, aligning closely with current market themes like the AI computing chain, semiconductor localization, and optical communication. Its top ten constituent stocks gather leaders from various sub-sectors such as optical modules, semiconductor equipment, memory chips, PCBs, and innovative drugs.
In terms of performance, the Huabao Technology ETF (515000) has seen its secondary market price frequently reach new highs this year, with its underlying index showing strong performance and its allocation value becoming increasingly prominent. As of June 30, 2026, the Technology Leaders Index has accumulated a gain of 153% over the past year, significantly outperforming popular tech indices like the Sci-Tech Innovation 50 over the same period. It can be considered a "Broad-Based Tech Pro Max" version, serving as a high-quality tool for investing in the technology theme.
Important Disclosures and Risk Information
The Huabao Technology ETF passively tracks the CSI Technology Leaders Index. The base date for this index is June 29, 2012, and it was launched on March 20, 2019. The annual historical returns for the CSI Technology Leaders Index from 2021 to 2025 were: -3.92%, -34.84%, 0.81%, 11.50%, and 51.54% respectively. The corresponding annualized volatility for the index during those years was 21.46%, 26.5%, 19.83%, 36.36%, and 27.34% respectively. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its back-tested historical performance does not indicate future index performance.
Data source: Shanghai and Shenzhen Stock Exchanges, etc. Note: "The first domestic" refers to the first ETF tracking the CSI Technology Leaders Index.
ETF Fund Fee Description: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission not exceeding 0.5%. Secondary market trading fees are subject to the actual charges levied by securities firms; no sales service fee is charged.
Feeder Fund Fee Description: For Huabao Technology ETF Feeder A, the subscription fee is 1.00% for amounts below 1 million yuan, 0.60% for amounts between 1 million yuan (inclusive) and 2 million yuan, and a flat 1000 yuan per transaction for amounts of 2 million yuan (inclusive) and above. The redemption fee is 1.50% for holdings under 7 days, 0.50% for holdings between 7 days (inclusive) and 180 days, and 0.00% for holdings of 180 days (inclusive) and above. No sales service fee is charged. Huabao Technology ETF Feeder C charges no subscription fee. Its redemption fee is 1.50% for holdings under 7 days and 0.00% for holdings of 7 days (inclusive) and above. The sales service fee is 0.40% per annum. ETF subscription/redemption agents may charge a commission not exceeding 0.5%. Secondary market trading fees are subject to the actual charges levied by securities firms.
Risk Warning: The Huabao Technology ETF passively tracks the CSI Technology Leaders Index. The base date for this index is June 29, 2012, and it was launched on March 20, 2019. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its back-tested historical performance does not indicate future index performance. The constituent stocks 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 information or trading trends of any fund managed by the fund manager. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for Balanced (C3) and above investors. All 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 must be 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 shall they bear any responsibility for any direct or indirect losses arising from the use of this article's 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.
Comments