On the final trading day before the Dragon Boat Festival holiday (June 18th), the ChiNext Index surged over 2% on heavy volume, setting a new all-time high! The price of the hard-tech broad-based ETF covering leading growth stocks from both ChiNext and the STAR Market, the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (588330), surged 3.67% intraday, refreshing its high point since its listing in July 2021. The combined trading volume for the Shanghai, Shenzhen, and Beijing exchanges reached 3.33 trillion yuan, an increase of 217.9 billion yuan from the previous day.
In the market, semiconductor leaders hit new highs in batches. Cambricon Technologies Corporation Limited surged 14%, aiming for the "trillion-yuan market cap club." The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190), which comprehensively invests in the chip industry, saw its intraday price rise strongly by 4.46%, consecutively setting new highs since its listing! Over 33.1 billion yuan in main capital continued to flow into the electronics sector, with Foxconn Industrial Internet Co.,Ltd., Cambricon Technologies Corporation Limited, and Gigadevice Semiconductor Inc. taking the top three spots for capital inflow in the A-share market. The HUABAO CSI ELECTRONICS INDEX ETF (515260), covering hot concepts like PCB, memory chips, and semiconductor equipment, closed up 3.67%, also setting a new historical high.
The AI twin stars strengthened together. Zhongji Innolight Co.,Ltd.'s total market capitalization surpassed that of Kweichow Moutai Co.,Ltd.. The HUABAO CHINEXT ARTIFICIAL INTELLIGENCE INDEX ETF (159363), with a high concentration in leading AI stocks, saw its intraday price rise 3.43%, setting another new listing high! Benefiting from STAR Market policies and positive catalysts in the chip industry, the HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC (589520), which focuses on the domestic AI industry chain, rose over 5.6% at its peak, closing up 4.91%, marking its fourth consecutive positive day. Its daily chart may have already formed an upward trajectory from a low base.
While the overseas Fed maintained a hawkish stance, domestic supportive policies led capital to continue clustering in hard-tech sectors. Ping An Securities believes that while the Shanghai Composite Index faces resistance around 4100 points, the downside may be limited, and the market could still experience volatile upward movement after the holiday, with the structural trend in growth themes likely to continue.*
Analysts note that starting from mid-to-late June, the market enters the window for verifying mid-year earnings reports, and focusing on the earnings theme often becomes a market consensus during this period. High-growth leading stocks in the tech sector hold high market expectations for mid-year performance, with particular attention on segments like memory chips, optical modules, and optical fibers.
Looking ahead, CITIC Securities believes A-shares may initiate a medium-term upward trend, a "moderately prosperous bull market," in the second half of the year. Policy-driven fundamental recovery, enhanced global allocation appeal for A-shares, and the transmission of loose macro liquidity to the stock market are three factors that will jointly drive A-shares higher. Overseas disturbances will likely remain frequent in Q3, but driven by policy, the domestic economy is expected to recover rapidly to normal levels in Q3, with A-share profit growth potentially rising quarter by quarter. It is anticipated that starting from the latter part of Q3, A-shares may begin a trend-driven upward movement lasting several months, representing a healthy, steady, and sustainable slow-bull market.*
Review of Key ETF Themes
This review focuses on the trading and fundamental situation of industry-themed ETFs such as STAR Market chips, electronics, and ChiNext artificial intelligence.
STAR Market Chip Stocks Hit New Highs in Batches, Cambricon Surges 14% Towards Trillion Club! Low-Fee STAR Chip ETF Rises 4.46% with Consecutive Breakouts
The STAR Market chip sector staged a strong rally. The 900-billion-yuan giant Cambricon Technologies Corporation Limited surged on heavy volume, gaining over 16% at its peak and closing up more than 14%, with its stock price reaching a new high above 1500 yuan and its market cap nearing 950 billion yuan, just a step away from the "trillion-yuan club." Huahong Grace rose over 12% intraday, closing up over 6%. Hygon Information Technology rose over 6%, while SMIC and Biwin Storage rose over 4%. Over ten stocks including Huahong Grace, Biwin Storage, CSSC Special Gas, and Jiehua Technology hit new highs in batches.
The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190), which comprehensively and robustly invests in the chip industry, saw its intraday price rise over 5%, closing up 4.46%, consecutively refreshing its highs since listing!
It is worth noting that during this year's chip and semiconductor market trend, the STAR Market chip sector has shown strong upward momentum. The Shanghai Stock Exchange Science and Technology Innovation Board Chip Index has accumulated a gain of 76.55% year-to-date, performing relatively well among similar semiconductor chip indices.
Historical data for the Shanghai Stock Exchange Science and Technology Innovation Board Chip Index shows annual gains/losses for the past five full years as: 2021: 6.87%, 2022: -33.69%, 2023: 7.26%, 2024: 34.52%, 2025: 61.33%. The index composition is adjusted according to its rules, and its past performance does not predict future results.
In terms of market drivers, leading cloud providers are increasing purchases of domestic chips. Industry sources indicate ByteDance is discussing purchasing at least 50,000 AI chips from Tianshu Zhixin, mainly for inference tasks, sparking market imagination about the large-scale deployment capability of domestic AI chips.
IDC data from April this year shows total AI accelerator card deliveries in the Chinese market reached 4 million units in 2025, with domestic manufacturers delivering 1.65 million units, raising their market share to 41%. NVIDIA's share in China significantly contracted from a near-monopoly of 95% to 55%.
Guosen Securities points out that against the backdrop of restricted access to overseas high-end chips, the resonance between domestic IT application innovation and large model iterations is accelerating the adaptation and volume shipment of domestic AI chip manufacturers, bringing incremental opportunities for the full-stack ecosystem.* Guojin Securities also believes that computing power competition has moved beyond single-chip performance contests, entering a new stage of system-level competition involving chips, storage, interconnects, software, and cluster coordination. Domestic computing power chips are experiencing resonance from policy, demand, technology, and ecosystem, with the industry entering a high-growth cycle of order volume growth and earnings realization, becoming a core allocation theme in the tech sector.*
Entering mid-to-late June, as the market faces the mid-year earnings verification window, due to high earnings expectations, market attention on leading companies in high-growth cycle sub-sectors within the tech space is likely to further intensify, potentially leading to a "the strong get stronger" dynamic in the hard-tech theme.
To position for the chip industry's "super cycle," high-beta 20CM varieties are preferred! Public information shows the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) and its feeder funds (Class A 021224, Class C 021225) passively track the Shanghai Stock Exchange Science and Technology Innovation Board Chip Index. While providing balanced allocation and full-chain exposure to the chip industry, it has over 90% weight in core areas like integrated circuits and semiconductor equipment, offering high hard-tech concentration and strong offensive potential.
Public data shows the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) has a management fee of 0.3% and a custody fee of 0.08%, resulting in a total expense ratio of 0.38%, which is relatively low among ETFs tracking the same target index.
Domestic AI Chips May Enter a Price Hike Window! Foxconn Industrial Internet Tops A-Share Capital Inflow List! Electronics ETF Hits New High After Touching 5% Gain!
The electronics sector continued its strong momentum, attracting a net inflow of 33.1 billion yuan in main capital for the day. Over longer periods, it attracted 199.6 billion yuan and 379.3 billion yuan over the past 5 and 20 days respectively, maintaining a top position for capital inflow among the 31 Shenwan primary industries by a wide margin! Foxconn Industrial Internet Co.,Ltd., Cambricon Technologies Corporation Limited, and Gigadevice Semiconductor Inc. received net main capital inflows of 10.2 billion yuan, 4.5 billion yuan, and 2.6 billion yuan respectively, taking the top three spots on the A-share capital inflow list.
Among popular ETFs, the HUABAO CSI ELECTRONICS INDEX ETF (515260), covering hot concepts like PCB, memory chips, and semiconductor equipment, rose as much as 5.05% intraday, closing up 3.67%, setting another historical high! Its daily turnover was 115 million yuan, a 40% increase from the previous day. The ETF's breakout on high volume above its listing high could be a buy signal. In fact, the ETF traded at a significant premium intraday, with a closing premium rate as high as 0.63%, reflecting stronger buying pressure.
Among its constituents, Cambricon Technologies Corporation Limited led gains, rising over 14% to a new high. Lens Technology rose over 8%, while Nexchip Semiconductor, Foxconn Industrial Internet Co.,Ltd., and Gigadevice Semiconductor Inc. rose over 7%. Stocks like Hygon Information Technology, VeriSilicon Microelectronics, Dongshan Precision Manufacturing, and Lingyi iTech followed with gains.
Recently, AI and inflation have re-emerged as market themes. Some views suggest that, driven by both rising upstream costs and an imbalance in local computing power supply and demand, domestic AI chips are entering a window for potential price increases.
On one hand, ByteDance's accelerated procurement of domestic AI chips, coupled with significantly increased shipment expectations for domestic chip companies like Hygon and Cambricon, aligns with industry signals since June such as structural shortages in wafer capacity, secondary price increases for power semiconductors, and tight capacity for advanced processes and packaging.
On the other hand, current utilization rates for domestic high-end computing cards are near saturation, with major companies continuously revising procurement budgets upward. However, leading chip manufacturers are still constrained by advanced process and packaging capacity. In an environment of high demand, tight capacity, and clients competing for resources, expectations for repricing of new-generation domestic GPUs/AI chips like Cambricon's 590/690 and Ascend 950 have naturally increased, with the market beginning to discuss potential upward price revisions.
Regarding key individual stocks, Foxconn Industrial Internet Co.,Ltd. topped the A-share capital inflow list. The core market narrative for Foxconn Industrial Internet likely centers on its transformation from a traditional manufacturing giant to a global AI server leader. It has become a core supply chain partner for major global AI cloud providers like NVIDIA, Microsoft, and Amazon Web Services, and is a key supplier for NVIDIA's next-generation cabinet-level servers like the GB200.
Data shows the underlying index of the HUABAO CSI ELECTRONICS INDEX ETF (515260) is deeply linked to global tech giants. As of the end of May, the weight of Apple, NVIDIA, and Google supply chains was 49.34%, 28.50%, and 23.85% respectively, positioning it to benefit from the industrial expansion and technological innovation of these tech titans.
Embracing Tech Giants to Seize Development Opportunities
The HUABAO CSI ELECTRONICS INDEX ETF (515260) and its feeder funds (Class A: 012550, Class C: 012551) passively track the CSI Electronics 50 Index, heavily weighted in semiconductors and consumer electronics, and aggregating hot concepts like PCB, MLCC, glass substrates, memory chips, and semiconductor equipment. Its top holdings include Luxshare Precision, Cambricon Technologies Corporation Limited, Foxconn Industrial Internet Co.,Ltd., and SMIC. Additionally, this ETF is eligible for margin trading and the Stock Connect program, serving as an efficient tool for one-stop exposure to core assets in the electronics sector.
Optical Module Leader Surpasses Moutai! Zhongji Innolight Soars! ChiNext AI ETF Extends Winning Streak to Four Days with New High! What are the Sector's Pricing Logics?
Directions like optical modules/CPO and computing power leasing remained active, with the high-optical-weight ChiNext AI index reaching new highs. Among them, optical module giant Zhongji Innolight Co.,Ltd. rose over 7% to a new high, with its market cap exceeding 1.5 trillion yuan, surpassing Kweichow Moutai Co.,Ltd.. Eoptolink Technology closed up over 4%, also hitting a new high. Computing power leasing concept stock Orient National Rise hit the 20% daily limit up, while memory chip concept stock Ingenic Semiconductor rose over 8%.
Among popular ETFs, after three consecutive days of gains, the HUABAO CHINEXT ARTIFICIAL INTELLIGENCE INDEX ETF (159363), which leads its category in size and liquidity, continued rising 3.43% intraday, setting another new listing high, with turnover exceeding 1.4 billion yuan, showing a noticeable increase in volume.
Reviewing recent trends, overseas computing power chain stocks, represented by optical modules/CPO, have continued clustering and hitting new highs. What are the current pricing logics for this sector?
According to Dongxing Securities analysis, there are two main pricing logics: First, tightness in the optical interconnect supply chain. Amid the trend of large-scale North American AI data center construction, and influenced by capacity shortages, the market is granting valuation premiums to upstream core materials, key components, and testing companies in the optical module supply chain. Second, emerging technologies like CPO, DCI, and AI agents are gaining market attention.*
Looking ahead to major industry trends and investment strategies for the optical communication sector in the second half of 2026, the institution suggests focusing on:
First, Scaleup becoming an innovation direction for AI data center networks. The development of scaleup networks downstream of data centers provides an important application scenario for emerging optical interconnect technologies like CPO/NPO. The scaled application of CPO/NPO is expected to drive silicon photonics architecture to become the mainstream technological path in the optical interconnect industry, with related industry chains likely benefiting deeply.
Second, the current tightness in the optical interconnect supply chain is expected to persist throughout 2026. Domestic optical chip companies may benefit from a triple opportunity: overall growth in the optical interconnect market, structural opportunities for silicon photonics CW lasers, and increasing domestic market share. Simultaneously, global high-speed optical modules are in an expansion cycle, with domestic leading companies having already secured capacity in advance, positioning them to benefit first from order volume growth.
From a medium-to-long-term allocation perspective, since the strong rebound in the overseas computing power chain, including optical modules/CPO, starting last April 8th, the ChiNext Artificial Intelligence Index has continued to lead similar AI-themed indices! As of June 18th, the high-optical-weight underlying index of the HUABAO CHINEXT ARTIFICIAL INTELLIGENCE INDEX ETF (159363) has gained 288% year-to-date, significantly outperforming similar AI-themed indices across the market, showing sustained excess returns. It also had the lowest maximum drawdown in its category during this period, offering a relatively favorable holding experience.
Note: The HUABAO CHINEXT ARTIFICIAL INTELLIGENCE INDEX ETF passively tracks the ChiNext Artificial Intelligence Index. The index base date is December 28, 2018, and its release date is July 11, 2024. Annual gains/losses for the ChiNext Artificial Intelligence Index from 2021 to 2025 were: 17.57%, -34.52%, 47.83%, 38.44%, 106.35%. The index composition is adjusted according to its rules, and its past performance does not predict future results.
For one-stop exposure to optical communication leaders, it is recommended to focus on the HUABAO CHINEXT ARTIFICIAL INTELLIGENCE INDEX ETF (159363) and its feeder funds (Class A 023407, Class C 023408), which lead their category in size and liquidity. The underlying index has an optical module weight of about 50% and a high concentration in leading AI stocks, with approximately 30% allocation to AI applications, making it not only a core computing power play but also a representative of AI applications.
It is worth noting that as of June 17, 2026, the latest size of the HUABAO CHINEXT ARTIFICIAL INTELLIGENCE INDEX ETF (159363) reached 7.81 billion yuan, ranking first in size within the dual-innovation AI theme across the market! Its average daily turnover over the past 6 months exceeded 900 million yuan, also ranking first in trading activity within the AI theme across the market.
Note: Fee details can be found in each fund's legal documents.
Source: Shanghai and Shenzhen Stock Exchanges, etc., as of June 18, 2026. Reminder: Recent market volatility may be significant. Short-term gains or losses do not predict future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying high attention to position and risk management.
*Institutional views referenced from: ① Ping An Securities report "ChiNext Hits New High Again, What's the Outlook?" released June 18; ② CITIC Securities report "A-Shares Expected to Begin a Trend-Driven Upward Movement in the Latter Part of Q3" released June 11; ③ Guosen Securities report "Large Models Drive Computing Power Transformation, Domestic Computing Power Presents Incremental Opportunities" released June 17; ④ Guojin Securities report "Giants Firmly Investing in AI, Domestic Substitution Deepens" released April 30; ⑤ Dongxing Securities "Optical Communication Industry Mid-2026 Strategy: Scaleup Becomes AI Data Center Network Innovation Direction, Optical Interconnect Supply Chain Tightness is the Main Theme."
Risk Disclosure: The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND passively tracks the Shanghai Stock Exchange Science and Technology Innovation Board Chip Index (Base Date: Dec 31, 2019; Release Date: June 13, 2022). The HUABAO CSI ELECTRONICS INDEX ETF passively tracks the CSI Electronics 50 Index (Base Date: Dec 31, 2008; Release Date: July 22, 2009). The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (588330) passively tracks the CSI Science and Technology Innovation Board 50 Index (Base Date: Dec 31, 2019; Release Date: June 1, 2021). The HUABAO CHINEXT ARTIFICIAL INTELLIGENCE INDEX ETF passively tracks the ChiNext Artificial Intelligence Index (Base Date: Dec 28, 2018; Release Date: July 11, 2024). The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC passively tracks the Shanghai Stock Exchange Science and Technology Innovation Board Artificial Intelligence Index (Base Date: Dec 30, 2022; Release Date: July 25, 2024). Index composition is adjusted according to index rules; past performance does not predict future results. Stocks mentioned are for objective illustration as index constituents only, not as individual stock recommendations, and do not represent the fund manager's investment direction. Any information herein is for reference only. Investors are responsible for their own investment decisions. Views, analysis, or forecasts herein do not constitute investment advice. The fund manager is not liable for any direct or indirect losses from using this content. Investors should read fund legal documents to understand risk-return characteristics and choose products matching their risk tolerance. Past fund performance does not predict future results; performance of other funds managed does not guarantee this fund's performance. Based on the manager's assessment, the HUABAO CSI ELECTRONICS INDEX ETF is rated R3 (Medium Risk), suitable for Balanced (C3) and above investors. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND, the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (588330), the HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC, and the HUABAO CHINEXT ARTIFICIAL INTELLIGENCE INDEX ETF are rated R4 (Medium-High Risk), suitable for Aggressive (C4) and above investors. Suitability matching opinions are subject to sales institutions. Sales institutions provide risk ratings per regulations; investors should note the manager's suitability opinions. Sales institutions' risk ratings may differ and cannot be lower than the manager's rating. Fund contract risk-return characteristics and risk ratings may differ due to different considerations. Investors should understand fund risks and returns, and choose funds based on investment objectives, horizon, experience, and risk tolerance. China Securities Regulatory Commission registration does not indicate substantive judgment or guarantee of fund value, prospects, or returns. Fund investment involves risk.
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