On July 29, the market rebounded from intraday lows, with all three major indices closing higher in afternoon trading. The Shenzhen Component Index and the ChiNext Index both rose by over 1%. Riding the market upturn, the GEM 50 ETF Huaan (159949) climbed 1.58% to 1.604 yuan, recording a turnover rate of 15.85% and a trading volume of 38.68 billion yuan, ranking first among similar ETFs in its category.
In terms of capital flows, the GEM 50 ETF Huaan (159949) continues to attract investor interest. Over the past 5 trading days, net capital inflows reached 31.3 billion yuan; over the past 10 trading days, net inflows totaled 65.9 billion yuan; and over the past 60 trading days, net inflows stood at 47.6 billion yuan. As of July 28, 2026, the ETF's circulating scale hit 243.73 billion yuan.
On the news front, the National Intellectual Property Administration announced at a press conference hosted by the State Council Information Office that innovation momentum in key sectors of the Chinese economy is strengthening. As of the end of June, valid invention patents in new-generation information technology fields, including artificial intelligence, internet, cloud computing, and big data, accounted for 16.5% of the total. The accelerated accumulation of patents in cutting-edge tracks is fueling the creation of new economic growth points. The layout of trademarks and brands in key industries is also being continuously improved, providing solid support for the branding development of related sectors.
Guotai Fund believes that the market's capital floor may have been confirmed, with market stabilization forces and listed company share buybacks releasing positive signals. Current extreme trading structures are gradually being digested, and the end of July could be an opportune time for reallocation. In terms of asset allocation, the firm continues its "style rebalancing" approach initiated in late June: the AI hardware theme remains the mainstay, with a preference for leaders with strong demand certainty. There is also a moderate tilt toward sectors where institutional holdings were previously low or reduced but where fundamentals have improved, such as lithium batteries, innovative drugs, non-bank financials, and the export chain.
Private equity mogul Ge Weidong once again emphasized his confidence in AI on his social media feed: "I believe it's not over. After all, it's the pursuit of the path closest to God. Who would stop? Whoever stops will face a dimensionality reduction attack next! This is something the top AI talent in Silicon Valley and China understand best."
The GEM 50 ETF Huaan (159949) serves as a convenient tool for investors with a long-term bullish outlook on China's technology growth sector. As of July 28, 2026, the product has delivered a three-year return of 67.53%, outperforming its benchmark, and ranks 197th out of 1,783 similar products. Investors can trade the ETF directly through a stock account, or participate via its feeder funds (Class A: 160422; Class C: 160424; Class I: 022654; Class Y: 022976). In terms of operation, a strategy of regular fixed investment or phased allocation is recommended to smooth out short-term volatility, along with close monitoring of the underlying stocks' earnings performance and related policy progress.
Risk Warning: Fund investments carry risks, and caution is advised. The GEM 50 ETF is a high-risk, high-expected-return product whose net value performance is closely linked to the ChiNext market. Investors should carefully read the fund's legal documents and make prudent decisions. A MACD golden cross signal has formed, indicating these stocks are showing strong upward momentum!
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