Today, the A-share market opened higher and continued to rise. The Shanghai Composite Index briefly approached 4,000 points, closing up 1.18% at 3,996.94. The Shenzhen Component Index gained 1.51%, ending at 13,489.40. Total turnover across the two markets reached 2.34 trillion yuan. Market breadth was positive, with over 3,300 stocks advancing. Memory chip stocks surged, while consumer electronics and CPO concepts outperformed. Media and real estate sectors bucked the trend, declining.
//// Hong Kong stocks closed 1.05% higher, with the Hang Seng Tech Index rising 1.83%. Previously impacted by overseas uncertainties, Hong Kong’s market—especially the tech sector—saw significant corrections. With easing U.S.-China trade tensions and a global shift toward monetary easing, Hong Kong stocks may regain upward momentum. The "15th Five-Year Plan" emphasizes "new quality productive forces," with technological innovation as a core driver. Amid rising external uncertainties, China’s push for self-reliance in tech is intensifying. Companies like Alibaba, Tencent, and Meituan, with strong business models and shareholder returns, are well-positioned in AI-driven growth. Upcoming Q3 earnings reports could spark sentiment-driven rallies if results exceed expectations. Valuations also favor Hong Kong stocks. The Hang Seng Tech Index trades at a TTM P/E of 23.79x, near historical lows, making it attractive versus global peers. Investors may consider the Hang Seng Tech ETF (513020) for exposure to high-growth, innovation-driven assets.
//// As U.S.-China trade talks progress and Fed rate-cut expectations strengthen, A-shares may refocus on domestic narratives. The "15th Five-Year Plan" supports long-term market confidence, emphasizing economic growth and a unified national market. With Q3 earnings season approaching, a "policy + earnings" dual catalyst could emerge. The CSI A500 Index, blending value and growth styles, is well-positioned for tech and industrial upgrades, with 45.8% exposure to "new quality productive forces" (TMT, new energy, defense, healthcare, autos). Its ESG focus and inclusion in Stock Connect enhance appeal to foreign investors. Options like the CSI A500 Enhanced ETF (159226) or CSI A500 ETF (159338) offer balanced exposure.
//// Today, computing-related ETFs led gains: Communication ETF (515880) rose 4.86%, Semiconductor Equipment ETF (159516) climbed 3.99%, and ChiNext AI ETF (159388) added 3.70%. Policy tailwinds include the "15th Five-Year Plan" prioritizing tech self-sufficiency. AI infrastructure demand is surging, with North American cloud providers planning a 40% YoY capex increase to $370 billion in 2025, benefiting optical modules and data centers. Domestic GPU production is also accelerating. Investors may monitor Communication ETF (515880), Semiconductor Equipment ETF (159516), and ChiNext AI ETF (159388) for dips.
//// Nonferrous Metals ETF (159881) rose 2.74%, extending last week’s rally. Macro sentiment improved as softer U.S. CPI data reinforced Fed rate-cut bets, while positive U.S.-China trade talks lifted cyclical assets. Copper fundamentals are strong: supply disruptions (e.g., Chile’s El Teniente, Congo’s Kamoa-Kakula) may reduce 2025 output by 220k tons, while demand from EVs, AI data centers, and grid investments grows. Copper prices are poised for sustained gains. Investors could track Nonferrous Metals ETF (159881) and Mining ETF (561330), both up over 2.5% today.
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