Semiconductor stocks continued their upward momentum today (June 29th). The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC (ETF: 589520), which focuses on China's domestic AI industry chain, saw its intraday price surge sharply by 4.4%. It is currently up 3.87%, with its daily chart showing a pattern of fluctuating upward steps.
Among its component stocks, Montage Technology Co.,Ltd. (ASX: 688008) led the gains, rising over 10%. Kingsoft Office gained more than 9%. OPT, MetaX, and
Analyst Perspectives on the AI Rally
Guotou Securities believes the current rally in AI technology stocks is unlikely to end soon. Given the lack of clear macroeconomic "grey rhino" risks and the difficulty in disproving the scale of AI capital expenditures, the core positioning of AI as a major investment theme remains firm despite recent high price volatility. The analysts suggest that the first peak of a potential "M-top" pattern for the current AI technology cycle has likely not yet been reached.
Huayuan Securities noted that as domestic AI large language models enter a phase of accelerated development, China's super nodes are expected to achieve mass production and increased market penetration due to their core advantages in high-density integration, high-speed interconnection, and global collaboration. The firm maintains a positive outlook on the high-growth domestic computing power sector.
Spotlight on Domestic Innovation and Self-Reliance
The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC (ETF: 589520) and its feeder funds (Feeder A: 024560, Feeder C: 024561) concentrate on China's domestic AI supply chain. Their holdings include leading domestic GPU companies (e.g., Cambricon), leading domestic ASIC firms (e.g., VeriSilicon), and top AI application players (e.g., Kingsoft Office). The semiconductor sector carries a weight of nearly half, providing strong growth potential, while the software sector accounts for over 30%, positioning it to benefit from potential catch-up rallies in AI applications. Furthermore, this ETF is a margin trading security, offering an efficient tool for gaining targeted exposure to domestic computing power.
Important Risk Disclosure
The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC passively tracks the SSE STAR AI Index. This index has a base date of December 30, 2022, and was launched on July 25, 2024. The composition of the index is adjusted according to its construction rules, and its back-tested historical performance is not indicative of future results. The individual stocks and index components mentioned in this article are for illustrative purposes only. Descriptions of stocks do not constitute investment advice in any form and do not represent the holdings or trading intentions of any fund managed by the asset manager. The fund manager assesses the risk level of this ETF as R4 (Medium-High Risk), suitable for aggressive (C4) and above investors. Suitability assessments should be based on the selling institution's criteria. All information presented (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for their own investment decisions. Furthermore, any views, analysis, or predictions herein do not constitute investment advice to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. A fund's past performance does not guarantee future results, and the performance of other funds managed by the same manager does not guarantee this fund's performance. Invest with caution.
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