In early trading today, July 7, the edge AI concept showed strength, with Rockchip Electronics Co., Ltd. hitting the daily limit-up, Transsion Holdings surging over 9%, and VeriSilicon Microelectronics rising more than 5%. The computing power chip sector also performed well, with Cambricon Technologies and Hygon Information Technology gaining over 3%.
Among popular ETFs, the Huabao Electronics ETF (515260), which encompasses hot concepts like edge AI and computing power chips, saw its intraday price rise over 1%, currently up 0.78%. The fund frequently traded at a premium, indicating strong buying interest.
In terms of capital flows, as of the time of writing, the electronics sector has attracted net main fund inflows exceeding 290 billion yuan, ranking first among 31 primary Shenwan industries for capital absorption. JCET Group and Cambricon Technologies received net main fund inflows of over 25 billion yuan and 13 billion yuan, respectively, placing them second and fourth on the A-share capital attraction list.
Key Developments in Edge AI
In edge AI news, Broadcom announced an expansion of its strategic collaboration with Apple, extending its custom ASIC chip supply contract until 2031. The partnership will involve developing and supplying custom AI accelerator chips for multiple generations of iPhone, Mac, and Vision Pro products, strengthening the AI computing power layout on the device side.
Trends in Computing Power Chips
In the computing power chip arena, Intel has implemented price increases for certain CPUs. The hikes primarily affect some consumer-grade Core Ultra processors and Xeon server processors. The overall price increase for high-end Xeon server products ranges from 7% to 12%.
Market Outlook and Analysis
Looking ahead, Dongwu Securities pointed out that July marks a dense window for the disclosure of first-half performance forecasts, with industry prosperity being a core pricing factor. The AI hardware industry chain, a major focus of the electronics sector, is highlighted as one of the areas expected to show strong performance in the first half of 2026.
CITIC Securities is optimistic that "price increases + AI + independent control" could form a strong, persistent theme for the electronics sector throughout the year. The firm believes the sector's positive momentum is likely to continue, with AI remaining the primary driver, and maintains a firm bullish outlook on the overall future performance of the electronics sector.
Long-Term Performance
Over a longer horizon, the underlying index of the Huabao Electronics ETF (515260) - the SZSE Electronic 50 Index - has surged 128.18% over the past year. This outperforms other electronic indices like the CSI Electronic Index (up 123.84%) and significantly outpaces major broad-based indices such as the STAR 50 Index (up 102.69%), the ChiNext 50 Index (up 93.86%), and the CSI 300 Index (up 21.59%).
The statistical data period is from July 6, 2025, to July 6, 2026. The index's performance for the last five full calendar years is as follows: up 3.27% in 2021, down 38.63% in 2022, up 1.03% in 2023, up 27.45% in 2024, and up 43.49% in 2025. The index composition is adjusted according to its rules, and its past performance does not guarantee future results.
ETF Profile and Positioning
The Huabao Electronics ETF (515260) and its feeder funds track the SZSE Electronic 50 Index, with significant exposure to the semiconductor and consumer electronics industries. It covers popular themes like PCBs, MLCCs, glass substrates, memory chips, and semiconductor equipment. Its top holdings include companies like Luxshare Precision Industry, Cambricon Technologies, Foxconn Industrial Internet, and SMIC, making it an efficient tool for gaining core exposure to the electronics sector.
Data shows the ETF's underlying index is deeply linked to global technology leaders. As of the end of June, the combined weight of companies in the Apple, NVIDIA, and Alphabet supply chains was 45.46%, 25.55%, and 18.98%, respectively, positioning it to potentially benefit from the expansion and innovation of these tech giants.
As of the end of June, the Huabao Electronics ETF (515260) had assets under management of 1.109 billion yuan, making it the largest ETF among the two funds tracking the same index in the market.
Investment Considerations and Risk Notes
Investors are reminded that recent market volatility may be elevated, and short-term price movements are not indicative of future performance. It is essential to invest rationally based on individual financial circumstances and risk tolerance, with careful attention to position sizing and risk management.
For investors with a long-term positive view on technology growth but concerned about high-level volatility, considering sectors with relatively low valuations, such as through the Huabao Software Development ETF (159036), Huabao Big Data ETF (516700), or Huabao IT Application Innovation ETF (562030), may be an option.
Regarding ETF fees: The ETF does not charge a sales service fee. Subscription and redemption agents may charge a commission of up to 0.5%, which includes fees charged by the stock exchange and registration institutions. On-exchange trading fees are subject to the rates set by the securities firm.
Risk Disclosure: The Huabao Electronics ETF passively tracks the SZSE Electronic 50 Index, with a base date of December 31, 2008, and a release date of July 22, 2009. The Huabao Big Data ETF tracks the CSI Big Data Industry Index, with a base date of December 31, 2012, and a release date of October 18, 2016. The Huabao IT Application Innovation ETF tracks the CSI IT Application Innovation Index, with a base date of December 29, 2017, and a release date of December 21, 2012. The Huabao Software Development ETF tracks the CSI All Share Software Development Index, with a base date of December 31, 2021, and a release date of March 29, 2023. The index constituents are adjusted according to their respective rules, and their historical back-tested performance does not predict future results. Individual stocks and index constituents mentioned are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice of any form, nor do they represent the holdings or trading activities of any fund managed by the asset manager. The fund manager assesses the risk rating of the Huabao Electronics ETF, Big Data ETF, IT Application Innovation ETF, and Software Development ETF as R3 (Medium Risk), suitable for Balanced (C3) and higher risk profile investors. The appropriateness matching opinion is subject to the sales institution. All information (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for their independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not guarantee its future results. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Invest with caution.
Comments