Is the lower-priced tech sector experiencing a catch-up rally? Today (July 10th), the Big Data ETF (516700), which is deeply tied to domestic computing power (IDC, servers) and AI applications, saw its intraday price surge as much as 5.22%, closing up 1.54% and securing its third consecutive daily gain. Data shows the ETF has attracted a net inflow of 5.57 million yuan over the last three trading sessions.
Regarding its constituent stocks, Ieit Systems Co.,Ltd. rose 4.11% on top of its previous two consecutive limit-up sessions, reaching a new all-time high. China Aerospace Digital Map Co., Ltd. surged over 9%, while Dawning Information Industry Co.,Ltd. and other stocks also advanced.
Reasons for the Strong Performance
What's driving the recent strength in the big data sector? The reasons can be analyzed from industrial, policy, and performance perspectives.
Industrial Milestone
On July 10th, Dawning Information Industry Co.,Ltd. announced the official completion of China's first fully domestically produced 100,000-card AI supercluster, "Dawning 8000 (Deng Feng)", which has been connected to the National Supercomputing Internet. This marks a shift in AI infrastructure construction from the ten-thousand-card level to the hundred-thousand-card deployment phase.
Policy Support
A State Council executive meeting explicitly called for "intensifying efforts to promote breakthroughs in AI innovation, accelerating key technology research and the construction of ultra-large-scale intelligent computing clusters, and strengthening the supply of high-quality data." With high-frequency, high-level policy focus, computing power is being positioned as a new type of public infrastructure, as essential and accessible as water and electricity.
Robust Earnings
Ieit Systems Co.,Ltd. released an earnings forecast, expecting net profit attributable to shareholders of 2.6 to 3.1 billion yuan for the first half of 2026, representing year-on-year growth of 226% to 288%. Its profit scale for the first half has already surpassed the full-year 2025 figure (2.413 billion yuan), setting a new record high for the same period since its listing. Industry insiders believe that the high demand for AI computing infrastructure translating into strong earnings for leading companies reaffirms the robust earnings elasticity of the computing power industry chain.
Analysts point out that the computing power network has been included in the national "Six Networks" major projects, a core infrastructure direction for the 15th Five-Year Plan period. As trillion-level investments gradually materialize, computing power infrastructure is officially becoming a foundational and strategic facility in the digital economy era, with policy dividends expected to persist long-term. Against the backdrop of restricted supply of high-end overseas chips, the pace of building independent and controllable intelligent computing centers and computing power hubs continues to accelerate, benefiting the entire industry chain.
Focus on Data Security and Technological Self-Reliance
The Big Data ETF (516700) passively tracks the CSI Data Index, which is deeply linked to domestic computing power (IDC, servers) and AI applications. It covers the entire data technology process, including big data storage, production, analysis, operation platforms, and applications, providing a better reflection of the overall development of China's big data industry. The CSI Data Index encompasses popular concepts. As of the end of May, the weight allocations for its constituent stocks related to cloud computing, IDC (computing power leasing), computing power, and AI applications were 88.41%, 44.80%, 43.97%, and 27.84%, respectively.
Comments