On the afternoon of February 12, the HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC (589520), which has a ByteDance industry chain weighting exceeding 29%, continued its upward trajectory. Its intraday gain reached 3.57%, and it is currently up 3.42%, having reclaimed its 20-day moving average during the session. As of now, it has recovered all major moving averages.
Among its constituent stocks, Ucloud Technology Co.,Ltd. (688158) hit the 20% daily limit up. Actions Technology Co., Ltd. surged over 15%, while VeriSilicon Microelectronics (Shanghai) Co., Ltd. rose more than 9%. Stocks such as Wasion Holdings Co., Ltd., StarRocks Corporation, Shanghai Fudan Microelectronics Group Company Limited, and Beijing Haiteng Tianjiao Technology Co., Ltd. also followed with gains.
The market movement is driven by news that ByteDance's Volcano Engine has tentatively scheduled a series of major upgrade releases for its Doubao large model on February 14. This model launch will involve Doubao Large Model 2.0, the audio-video creation model Seedance 2.0, and the image creation model Seedream 5.0 Preview. With this upgrade, Doubao Large Model 2.0 will be officially released, featuring significant improvements in both foundational model capabilities and enterprise-level Agent functionalities.
Notably, ByteDance's previously launched Seedance 2.0 video generation model has gained immense popularity online. Furthermore, Doubao plans to distribute over 100,000 tech gifts and cash red envelopes to a national audience during the live broadcast of the 2026 China Central Television Spring Festival Gala on New Year's Eve. As a leading domestic AI player, ByteDance maintains deep collaborations with constituent companies of the benchmark index tracked by the HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC (589520). As of the end of January 2026, ByteDance's industry chain weighting within the index stood at 29.42%.
Analysts from Guolian Minsheng Securities expressed continued optimism regarding AI investment opportunities, citing four key factors validating the sector's high growth prospects: 1) Increased capital expenditure from major tech giants; 2) AI assistants like Clawdbot demonstrating AI's evolution from conversational tools to proactive executors, with promising prospects for edge AI products; 3) Persistent supply-demand tightness in computing infrastructure, driving upstream cost inflation, cloud service price hikes, rising H100 leasing costs, and a potential continuation of price increases in the storage sector; and 4) AI has entered a phase of application deployment, accelerating demand, and synchronized industry chain growth, warranting a broadly positive outlook on the AI industry trend.
The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC (589520) and its feeder funds focus heavily on the domestic AI industry chain. Its constituents include leading domestic GPU developers, top domestic ASIC firms, and prominent AI application companies. The semiconductor sector accounts for nearly half of the index's weight, providing strong offensive potential, while the software sector, with a weighting exceeding 30%, is well-positioned to benefit from potential catch-up rallies in AI applications. Additionally, this ETF is a margin trading security, offering an efficient tool for gaining exposure to domestic computing power.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
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