On May 25th, the chip sector on the STAR Market regained momentum. Leading constituent Cambricon Technologies Corporation Limited surged over 11%, with its share price reaching a new all-time high of 1,435 yuan. Dongxin Semiconductor, which plans a Hong Kong listing for an "A+H" structure, jumped over 17%. Semiconductor Manufacturing International Corporation rose more than 6%, Hua Hong Semiconductor gained over 5%, and Hygon Information Technology also advanced. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND, which provides comprehensive exposure to the chip industry, saw its intraday price climb as much as 3% and is currently up 2.2%. Amid recent increased sector volatility, capital has been actively deployed. Data from the Shanghai Stock Exchange shows the fund has attracted over 40 million yuan in net inflows over the past three consecutive days.
Supportive policy tailwinds are blowing again. On May 22nd, a spokesperson for China's National Development and Reform Commission stated the need to promote the deep integration of artificial intelligence across all sectors of the economy and society. They emphasized guiding domestic large AI models to intensify their adaptation to domestically produced computing power chips, ensuring independent and controllable development, positive growth, and long-term stability while maintaining a rapid pace.
Kaiyuan Securities noted that this guidance to intensify the adaptation of domestic large models to domestic computing chips elevates the coordinated development of "domestic large models" and "domestic computing chips" to a clear policy directive. Major domestic cloud service providers like Alibaba and Tencent have indicated plans to increase capital expenditures, reflecting strong downstream demand. Furthermore, as the supply of domestic chips gradually increases, the computing power supply situation is expected to improve, presenting new opportunities for domestic computing power.
GF Securities highlighted the accelerated construction of an independent, controllable ecosystem for "domestic computing power + domestic models." According to data from the National Data Administration, as of the end of March, the daily token consumption of China's AI large models has reached 140 trillion. The rapid growth in domestic token usage stems from the continuous iteration of domestic model capabilities and reflects their high-frequency application in various scenarios such as coding, intelligent agents, and video generation. Considering the trend of domestic large models increasingly adapting to domestic computing chips, domestic AI chips are expected to see increased volume alongside the growth of domestic AI model tokens.
For exposure to the chip industry's "super cycle," consider high-beta options. Public information shows that the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND and its feeder funds passively track the SSE STAR Market Chip Index. While providing balanced and comprehensive exposure across the chip industry chain, the fund allocates over 90% of its weight to core areas like integrated circuits and semiconductor equipment, offering high exposure to hard technology with strong offensive potential.
Data source: Shanghai and Shenzhen Stock Exchanges, etc.
ETF fee note: When investors subscribe for or redeem fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions. Feeder fund fee note: For the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND FEEDER FUND A, the front-end subscription fee is 0.5% for amounts below 1 million yuan, 0.2% for amounts between 1 million yuan (inclusive) and 2 million yuan, and a flat fee of 1,000 yuan per transaction for amounts of 2 million yuan (inclusive) and above. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days (inclusive) or more. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND FEEDER FUND C does not charge a subscription fee. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days (inclusive) or more. A sales service fee of 0.2% applies.
Risk Disclosure: The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND passively tracks the SSE STAR Market Chip Index. The index base date is December 31, 2019, and its release date was June 13, 2022. This product is issued and managed by Huabao Fund. Distributing institutions do not bear responsibility for the product's investment, redemption, or risk management. Investors should carefully read the Fund Contract, Prospectus, Fund Product Summary, and other legal documents to understand the fund's risk-return characteristics and choose a product suitable for their own risk tolerance. The fund manager assesses this fund's risk rating as R4 (Medium-High Risk), suitable for investors with a suitability rating of C4 or above. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance of the fund is not indicative of its future results. Funds carry risks, and investment requires caution. Sales institutions (including the fund manager's direct sales channels and other distributors) evaluate the fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions may differ among sales institutions, and the risk rating results provided by fund sales institutions for the fund product shall not be lower than the risk rating results determined by the fund manager. The description of the fund's risk-return characteristics in the fund contract and its risk rating may differ due to different considerations. Investors should understand the fund's risk-return profile and choose fund products prudently based on their own investment objectives, horizon, experience, and risk tolerance, bearing the associated risks themselves. The China Securities Regulatory Commission's registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks, and investment requires caution.
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