On Friday, March 20th, major A-share indices mostly declined, while the ChiNext Index bucked the trend with a 1.3% gain. The Hard Technology Broad-Based ETF tracking leading high-growth companies from the STAR and ChiNext markets saw its intraday price rise by up to 3.42%, closing 1.28% higher. The ETF traded at a significant premium, indicating strong buying interest, and had attracted approximately 22.67 million yuan in net inflows over the previous five days.
Among its components, leading semiconductor firm saw its shares surge over 13%, with net main fund inflows of 3.133 billion yuan, topping the A-share capital attraction list. The leading optical module company advanced more than 8%, reaching a new historical high. Leading solar equipment manufacturer rose over 5%, attracting net main fund inflows of 2.619 billion yuan, ranking third on the A-share capital attraction list.
Key market developments focused on two active sectors: 1. In solar power, Tesla Motors plans to invest approximately $2.9 billion to purchase Chinese photovoltaic equipment and aims to add 100GW of solar manufacturing capacity in the United States. Industry experts noted that facing severe electricity shortages driven by AI data centers and manufacturing, coupled with artificially high costs for U.S. solar deployment due to tariff barriers, Tesla is turning to Chinese suppliers. Analysis suggests that continued policy support for initiatives like computing-power coordination and the accelerated adoption of new industrial models such as direct green power connections could sustain rising attention on the new energy infrastructure sector. 2. In optical modules, the recent concurrent hosting of the global OFC conference and the NVIDIA GTC conference provided clear technological roadmaps and production certainty for the industry. Research indicates that demand for 800G optical modules is expected to maintain rapid growth through 2026, with shipments of 1.6T modules also set to increase substantially, while development of 3.2T modules has officially commenced.
Looking ahead, under the requirements of the 15th Five-Year Plan, technological security remains a critical focus, aimed at significantly enhancing self-reliance and fostering a development pattern for key industries. New quality productive forces are expected to assume the role of a pillar industry, replacing real estate, driving rapid development anchored in energy foundations and advancing core sectors concurrently.
The Hard Technology Broad-Based ETF and its corresponding feeder fund select the 50 largest strategic emerging industry listed companies from the STAR and ChiNext boards, encompassing themes like optical modules, semiconductors, and photovoltaic equipment. The ETF is also eligible for margin trading and Stock Connect programs, serving as an efficient tool for investing in new quality productive forces.
Notably, the underlying index of the ETF was the top-performing broad-based index in 2025, with a cumulative gain of 60.86%, outperforming other major indices.
Investors should note that the ETF passively tracks the CSI STAR ChiNext 50 Index, established on December 31, 2019, and launched on June 1, 2021. Its historical performance from 2020 to 2024 includes annual returns of 86.90%, 0.37%, -28.32%, -18.83%, and 13.63%. Index composition is adjusted per its rules, and past performance does not indicate future results. Any stock mentions are for illustrative purposes only and are not investment recommendations. The fund manager rates the ETF as R4 - medium-high risk, suitable for aggressive investors and above. Investment decisions should be made independently, and no liability is accepted for losses resulting from information provided. All investments carry risk, and past fund performance does not guarantee future returns.
Comments