The financial technology sector experienced a sharp upward movement during early trading on July 1st. Hithink Royalflush Information Network Co.,Ltd. (ASX: 300033), Yinzhijie, Borui Data, Airon Software, and other stocks surged more than 10%. Global Infotech, DZH Ltd., Hengyin Technology, Yinsheng, and Compass also saw gains exceeding 6%. The largest financial technology ETF by scale, Huabao Fintech ETF (159851), surged over 6% during the session with real-time turnover surpassing 2 billion yuan, indicating significant volume expansion.
Active market trading provides direct momentum for the performance of internet brokerages and financial IT firms. Recent consecutive daily turnover on the Shanghai and Shenzhen exchanges has exceeded 3 trillion yuan. The financial technology sector's strong beta characteristics are prominent, and the sector is expected to continue benefiting from high liquidity. Fundamentals for internet brokerages are anticipated to keep improving. Financial IT, as a pro-cyclical, high-volatility segment, also continues to benefit from robust liquidity. Demand for retail trading software is rising, and institutional demand for financial IT is gradually being released.
Analysts point out that the fintech sector is currently benefiting from a triple catalyst of active trading, foreign investment liberalization, and a technology bull market, driving sustained upward momentum in the industry. Leading companies such as Hithink Royalflush Information Network Co.,Ltd. (ASX: 300033), East Money Information, and Compass reported significant year-on-year growth in revenue and profit for Q1 2026, reflecting strong downstream demand. Supported by both policy tailwinds and improved market sentiment, the financial IT sector may offer favorable allocation value, with related leading stocks poised to benefit continuously.
On the valuation front, as of June 30, 2026, the financial technology index has retracted more than 38% from its high on August 25, 2025, indicating a relatively sufficient technical correction. The index's dynamic price-to-earnings ratio stands at 48 times, positioned at the 20th percentile over the past three years, suggesting valuation levels have retreated to historical lows. Against the backdrop of expected fundamental recovery and policy catalysts, the sector's cost-effectiveness for allocation may improve due to its high-volatility nature.
The Huabao Financial Technology ETF (159851) and its feeder funds (Class A: 013477, Class C: 013478) track an index heavily weighted in computer and non-bank financial sectors. It covers popular themes such as internet brokerages, financial IT, cross-border payments, and AI applications, combining attributes of financial cycles and technology growth. As of June 22nd, the Financial Technology ETF (159851) had a fund size exceeding 6.8 billion yuan, ranking first among the eight ETFs tracking the same underlying index.
Investors should note that the Financial Technology ETF passively tracks the CSI Financial Technology Theme Index. The index's base date is June 30, 2014, and its release date is June 22, 2017. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its back-tested historical performance does not indicate future results. Constituent stocks mentioned are for illustrative purposes only; descriptions of individual stocks do not constitute investment advice in any form nor represent the holding information or trading动向 of any fund managed by the manager. The fund manager assesses this fund's risk等级 as R3-Medium Risk, suitable for Balanced (C3) and above investors. Any information appearing herein is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any kind to the reader, nor shall they be liable for any direct or indirect losses arising from the use of this content. Fund investment carries risks. A fund's past performance does not represent its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest in funds with caution.
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