Where to begin
On August 5, all three major A-share indices closed higher, with the STAR 50 Index surging 4.78% and the semiconductor sector leading the market's strong rally. The sector's strength drove related core indices significantly higher, placing them among the top gainers across the entire market. Specifically, the STAR Semiconductor Materials and Equipment Theme Index rose 9.68% in a single day, the CSI Semiconductor Materials and Equipment Theme Index climbed 9.53%, and the CSI Semiconductor Industry Index gained 8.42%.
Semiconductor-related ETFs surged in tandem, with several products approaching their daily price limit. For example, the GF Semiconductor Equipment ETF gained 9.88% on the day. The ChinaAMC Semiconductor Equipment ETF, the Penghua STAR Semiconductor Equipment ETF, and the ChinaAMC STAR Semiconductor ETF all rose over 9.7%. Products such as the E Fund Semiconductor Equipment ETF, the Wanjia Semiconductor Equipment ETF, and the Huatai-PineBridge STAR Semiconductor Equipment ETF recorded gains exceeding 9%.
Trading activity for cross-border semiconductor ETFs was also robust. The Huatai-PineBridge China-South Korea Semiconductor ETF saw its full-day trading volume reach 23.7 billion yuan, marking the third highest volume in the product's history. The record high was 25.9 billion yuan on July 29, 2026, followed by a second high of 24 billion yuan on July 21, 2026. This ETF tracks the CSI Korea Exchange China-South Korea Semiconductor Index, with its top two holdings being Samsung Electronics and SK Hynix.
In overseas markets on August 5, South Korea's KOSPI Index closed 3.76% higher. SK Hynix gained 5.77%, and Samsung Electronics rose 2.5%. According to media reports, US export controls on China have inadvertently created opportunities for Chinese equipment suppliers. Samsung and SK Hynix are reportedly evaluating the introduction of chip-making equipment from Advanced Micro-Fabrication Equipment Inc. (AMEC) into their Chinese factories to hedge against the risk of tightening US restrictions.
Why focus on just two major semiconductor equipment indices
An analysis from GTJA Fund pointed out that in the short term, the semiconductor equipment sector is driven by memory expansion, while in the medium to long term, the focus is on self-reliance and control. Regarding memory expansion, current memory chip prices are at historical highs. The original equipment manufacturers (OEMs) that expand capacity first will capture the most profit. Semiconductor equipment companies are analogous to 'shovel sellers' during a gold rush, offering high certainty. Additionally, against the backdrop of a global shortage, domestic semiconductor equipment has developed an export logic.
Currently, two indices focusing on the upstream 'shovel seller' track are attracting significant attention: the STAR Semiconductor Materials and Equipment Theme Index and the CSI Semiconductor Materials and Equipment Theme Index. Both indices invest in the semiconductor materials and equipment sector, but they have distinct differences in sample space and weighting rules, catering to different investor allocation needs. The STAR Semiconductor Materials and Equipment Theme Index restricts its sample pool to stocks listed on the STAR Market, with a maximum component weight of 10%, making it more focused on hard-tech companies on the STAR board. In contrast, the CSI Semiconductor Materials and Equipment Theme Index covers the entire A-share market, allowing a maximum component weight of 15%, which enables it to include leading companies from all sectors of the market. In terms of constituent stocks, the two indices share many overlapping names: Hwatsing Technology Co., Ltd., Advanced Micro-Fabrication Equipment Inc. (AMEC), Skyverse Technology, Piotech Inc., Huafeng Test & Control Technology Co., Ltd., Advanced Micro-Fabrication Equipment Inc. (AMEC), Sien (Qingdao) Integrated Circuit Co., Ltd., and China Shipbuilding Industry Group Power Co., Ltd. are all among the top ten holdings of both indices. Their differences are equally prominent. The STAR Index includes Anji Microelectronics Technology (Shanghai) Co., Ltd., National Silicon Industry Group, and ACM Research (Shanghai) Inc. Meanwhile, the CSI Index also includes non-STAR board leaders such as NAURA Technology Group Co., Ltd., Changchuan Technology Co., Ltd., and Konfoong Materials International Co., Ltd. Specific information on ETFs tracking these two indices is as follows.
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