On Friday (October 30), the market continued its consolidation, with all major A-share indices closing in the red. The hard-tech broad-based index covering high-growth leaders from both the ChiNext and STAR Markets — the Huabao Dual-Creative 50 ETF (588330) — saw its tracked index pull back along with the broader market, ultimately closing down 5.12%. The index has now fallen back to its August level from last year, highlighting attractive allocation value.
In fact, over the past 20-plus trading days, capital has maintained consistently high attention on this product. Among constituent stocks, power equipment leaders bucked the trend with active trading — Lead Intelligent led gains with a rise of over 4%, while EVE Energy, Yitang Co, CATL, Mindray Medical, and Baili Tianheng each gained more than 1%. The remaining 44 stocks declined, with optical module leader Eoptolink leading losses at a drop of 14%, T&S Communications falling over 8%, and Zhongji Innolight declining nearly 5%.
Facing Volatility Head-On! What Is the Market Adjusting For Recently?
The global AI narrative is undergoing a stress test. Revenue growth at frontier model companies OpenAI and Anthropic has decelerated at the margin, and funding costs and equipment depreciation pressures at some highly leveraged cloud providers are becoming more visible. Market confidence in whether AI capital expenditure can continue to expand has consequently weakened, risk appetite has retreated, and multiple markets have adjusted in sync.
At the same time, the mutual reinforcement of high debt and high interest rates in the US and Europe is undermining the stability of global interest rate benchmarks and the financing system. For the A-share market, this is an unavoidable external disturbance.
Key Individual Stocks in Focus
As of now, all three optical module giants have disclosed their third-quarter earnings reports. Specifically:
1. Zhongji Innolight: Q3 revenue of 27.769 billion yuan (up 171.8% year-on-year), net profit attributable to parent of 8.587 billion yuan (up 173.7% year-on-year), continuing to hit new highs on a sequential basis. Non-GAAP profit exceeded GAAP net profit, and orders have basically covered through 2027. This represents the fastest growth and the most solid earnings quality among the three.
2. Eoptolink: Q3 revenue and net profit attributable to parent both grew strongly year-on-year (revenue of 10.940 billion yuan, up 80.3% year-on-year; net profit attributable to parent of 3.843 billion yuan, up 61.2% year-on-year), but declined sequentially (-13.0%/-19.1%), breaking the record of consecutive sequential revenue growth since Q1 2023. The company explained that flooding in Thailand disrupted shipments and customs clearance at the end of September, pushing some revenue recognition into early October. This is more of a "correction in pace and expectations" rather than a "fundamental breakdown."
3. T&S Communications: Q3 revenue of 1.923 billion yuan (up 31.5% year-on-year), net profit attributable to parent of 879 million yuan (up 55.3% year-on-year), with gross margin hitting a new high (65.0%) and revenue accelerating sequentially, demonstrating solid operational quality.
In summary, third-quarter results confirm that the volume-price structure of AI optical modules continues to improve — none of the three saw gross margin deterioration, order visibility extends to 2027-2028, and CPO/NPO are entering the delivery phase. The industry trend has not been disproven. The current decline stems more from disturbances in the overseas AI narrative (negative free cash flow at Google, disappointing Samsung semiconductor earnings expectations), compounded by concentrated turnover of crowded high-level positions in A-shares and style rebalancing.
Tianfeng Securities pointed out that the market has entered the bottom range of this round of adjustment. This decline is mainly driven by valuation contraction rather than a disproven industry trend. From an odds perspective, the allocation value of tech growth has improved, and if a rebound occurs, the STAR Market and ChiNext directions are favored.
At the valuation level, the tracked index of Huabao Dual-Creative 50 ETF (588330) currently has a PE (TTM) of 33.74x, below the median of 40.69x, sitting at a relatively low 26.09% percentile since listing. The valuation pullback is significant, and for tech leaders with continuously materializing earnings, long-term value is becoming increasingly prominent.
Data shows that since hitting a historical high on July 1, as of October 29, the hard-tech broad-based indices (STAR Market ChiNext 50, STAR 50, ChiNext 50) have all corrected by more than 44%. However, during this period, ETFs tracking these three indices across the entire market received a combined net capital inflow of up to 172.6 billion yuan, exhibiting a "buy more as prices fall" characteristic. Market volatility has not deterred capital; instead, it has attracted real money in support.
Undeterred by Rotation — A One-Click Bundle of China's Top Tech
The hard-tech broad-based Huabao Dual-Creative 50 ETF (588330) and its off-exchange feeder funds (Class A: 013317, Class C: 013318) select 50 strategic emerging industry companies with larger market capitalizations from the STAR Market and ChiNext, fully allocating to new quality productive forces. Optical modules account for 31%, semiconductors 43%, and batteries 11%. Its heavyweight holdings include tech leaders such as Eoptolink, Zhongji Innolight, CATL, and Cambricon. With a 20% price limit, the ETF offers low-threshold entry to capture the breakout power of the dual-creative track. Additionally, the ETF qualifies for margin trading and short selling plus connectivity, making it an efficient one-click tool for allocating to new quality productive forces.
Note: The on-exchange short name of Huabao Dual-Creative 50 ETF (588330) was previously Dual-Creative Leaders ETF. Note: The optical module content comparison index is the Optical Module (CPO) Index. Semiconductor and battery weightings are classified per Shenwan Level 2 industries. Source: Shanghai and Shenzhen Stock Exchanges, etc., as of October 29, 2026.
Institutional view reference source: Tianfeng Securities' report titled "Advancing the Bull: Second Half Offensive — 2026 Autumn Strategy Report" published on August 21. ETF fee-related disclosure: ETFs do not charge sales service fees; subscription and redemption agents may charge commissions at a rate not exceeding 0.5%, which includes related fees charged by stock exchanges and registration institutions. On-exchange trading fees are subject to actual charges by securities companies. Feeder fund fee disclosure: Huabao CSI STAR Market ChiNext 50 ETF Initiating Feeder Fund (Class A) subscription fee is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1% for below 1 million yuan. Redemption fee is 1.5% for holding periods within 7 days, 0.1% for 7 days (inclusive) to 30 days, and 0% for 30 days (inclusive) or more. No sales service fee is charged. Huabao CSI STAR Market ChiNext 50 ETF Initiating Feeder Fund (Class C) does not charge subscription fees; redemption fee is 1.5% for holding periods within 7 days and 0% for 7 days (inclusive) or more; sales service fee is 0.3%.
Risk disclosure: Huabao Dual-Creative 50 ETF passively tracks the CSI STAR Market ChiNext 50 Index, whose base date is December 31, 2019, and was launched on June 1, 2021. Index constituent composition is adjusted in due course according to the index compilation rules, and its backtested historical performance does not predict future index performance. Index constituent stocks mentioned in this article are for illustrative purposes only. Individual stock descriptions do not constitute investment advice of any form and do not represent the holdings or trading activities of any fund under the manager. The fund manager assesses the risk level of Huabao Dual-Creative 50 ETF as R4 — medium-high risk, suitable for aggressive (C4) and above investors. Suitability matching opinions should be based on the sales institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any investment decisions they make independently. Additionally, any views, analyses, and forecasts in this article do not constitute investment advice of any form to readers, nor shall they bear any responsibility for direct or indirect losses arising from the use of this content. Fund investment involves risks; past performance of funds does not represent future performance; the performance of other funds managed by the fund manager does not guarantee fund performance. Fund investment requires caution. MACD golden cross signals have formed — these stocks are performing well!
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