Since hitting a historic high on July 1, the hard-tech broad-based indices (STAR Market and ChiNext 50, STAR 50, ChiNext 50) have all pulled back by more than 40%. Yet during this period, ETFs tracking these three indices across the entire market have collectively attracted net capital inflows of up to 165.2 billion yuan. Market volatility did not scare off capital; instead, it drew in massive real-money bottom-fishing.
Why is capital willing to go against the tide, adding positions and buying more as prices fall? Behind this lies a triple resonance of policy, earnings, and individual stock fundamentals, as well as the unique charm of broad-based index mechanisms themselves.
Part One: The Confidence Behind Capital's Contrarian Move — Denominator-Side Disturbances, but Solid Fundamentals
Capital dares to buy on dips, likely because it sees the true nature of this round of decline. Zheshang Securities pointed out that this round of adjustment is more of a denominator-side disturbance (US Treasury yields, liquidity expectations), with no systemic damage to the earnings side. As the third-quarter earnings verification window approaches, earnings realization is expected to re-emerge as the main pricing driver.
1. Policy direction: The State Council and other departments issued the Opinions on Developing New Quality Productive Forces, a top-level document for developing new quality productive forces. The constituent stocks of the underlying index of Double Innovation 50 ETF Huabao (588330) are 100% positioned in the direction of new quality productive forces.
2. Earnings support: As of October 26, among the 50 constituent stocks of the underlying index of Double Innovation 50 ETF Huabao (588330), 11 listed companies have disclosed their first three-quarter earnings forecasts. Among them, Jiangbo Long is expected to achieve a maximum net profit attributable to shareholders of 14.9 billion yuan, temporarily ranking first, while Lianxun Instruments is expected to see a maximum year-on-year surge of 20 times in net profit attributable to shareholders.
3. Individual stock resilience: On October 23, ChiNext companies Zhongji Innolight Co.,Ltd. (300308), Eoptolink Technology Inc.,Ltd. (300502), and Tianfu Communication all issued announcements. Zhongji Innolight Co.,Ltd. and Tianfu Communication stated that they have sufficient orders on hand and that production and operations are entirely normal. Eoptolink Technology Inc.,Ltd. plans to repurchase A-share shares for 800 million to 1 billion yuan. On the same day, STAR Market companies including Cambricon Technologies Corporation Limited (688256), Baiwei Storage, Shengyi Electronics, Yuanjie Technology, and Lianxun Instruments collectively disclosed their recent production and operations. From AI computing power chips to storage to high-speed interconnect, these companies are demonstrating fundamental resilience through earnings growth, order reserves, R&D investment, and capacity building.
Part Two: The Inherent Charm of Hard-Tech Broad-Based Indices — The "Dual Cap" and "Horse Racing" Mechanisms
The tech sector rotates rapidly, and betting on a single track carries greater risk. The compilation mechanism of the underlying index of Double Innovation 50 ETF Huabao (588330) — the STAR Market and ChiNext 50 Index — solves this pain point.
1. [ChiNext + STAR Market] Golden duo, balanced allocation smooths volatility. The underlying index of Double Innovation 50 ETF Huabao (588330) — the STAR Market and ChiNext 50 Index — selects 50 strategic emerging industry companies with larger market capitalizations from the STAR Market and ChiNext. Its core design lies in the dual cap mechanism: the weight of a single board shall not exceed 80%, and the weight of a single stock shall not exceed 10%. This mechanism ensures both the contribution of leading enterprises and avoids extreme volatility risk from a single stock or a single board. This is also the core advantage of broad-based indices: achieving risk smoothing and balanced returns through institutionalized diversified allocation.
2. The index has a built-in "horse racing mechanism" that automatically keeps up with industrial waves. The tech sector iterates rapidly, and industrial mainlines continuously rotate. The STAR Market and ChiNext 50 Index can automatically complete iterative updates, saving investors the trouble of choosing tech sub-sectors and individual stocks. In 2021, when the STAR Market and ChiNext 50 Index was launched, the market mainline was new energy, with the top ten heavyweight stocks dominated by power equipment leaders such as CATL and Sungrow. By 2026, the AI computing power wave has taken over, and the top ten heavyweight stocks of the index have switched to optical module leaders Eoptolink Technology Inc.,Ltd. and Zhongji Innolight Co.,Ltd., as well as Tianfu Communication, and semiconductor leaders Cambricon Technologies Corporation Limited, AMEC, SMIC, and Hygon Information. The STAR Market and ChiNext 50 Index can be understood as a horse race: at the start, large-cap companies are the seeded players. As market styles shift, some dark horses see their share prices soar over the long term, their market values grow substantially, and they automatically gain higher weights in the index. Index samples are adjusted once per quarter, meaning investors do not need to bet in advance on which track will become the tech hotspot. The index can automatically complete iterations following market conditions, with strong performers automatically rising to the top, allowing one-click tracking of the industrial upgrading wave.
Part Three: Fearless of Rotation, One-Click Packaging of China's Top Tech
Double Innovation 50 ETF Huabao (588330) and its off-exchange feeder funds (Class A: 013317, Class C: 013318) closely track the STAR Market and ChiNext 50 Index, packaging China's top tech assets in one click:
1. Industry weights: 100% positioned in new quality productive forces, with optical modules at 31%, semiconductors at 43%, and batteries at 11%.
2. Core heavyweights: tech leader stocks such as Eoptolink Technology Inc.,Ltd., Zhongji Innolight Co.,Ltd., CATL, and Cambricon Technologies Corporation Limited.
3. Trading advantages: 20% price limit, and the ETF allows low-threshold entry to capture the breakout power of the dual-innovation track. At the same time, this ETF is a [margin financing and securities lending] + [connectivity] target, making it an efficient tool for one-click allocation to new quality productive forces.
Note: The on-exchange short name of Double Innovation 50 ETF Huabao (588330) was previously Double Innovation Leader ETF. Note: The optical module content comparison index is the Optical Module (CPO) Index. Semiconductor and battery content are classified according to the Shenwan secondary industry classification. Source: Shanghai and Shenzhen Stock Exchanges, etc., as of 2026.10.27. ETF fee-related notes: ETFs do not charge sales service fees. Subscription and redemption agencies may charge commissions at a standard not exceeding 0.5%, which includes related fees charged by stock exchanges and registration institutions. On-exchange trading fees are subject to actual charges by securities companies. Feeder fund-related fee notes: Huabao CSI STAR Market and ChiNext 50 ETF Initiating Feeder Fund (Class A) subscription fee rate is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1% for below 1 million yuan. The redemption fee rate is 1.5% for holding periods within 7 days, 0.1% for holding periods of 7 days (inclusive) to 30 days, and 0% for holding periods of 30 days (inclusive) or more, with no sales service fee charged. Huabao CSI STAR Market and ChiNext 50 ETF Initiating Feeder Fund (Class C) does not charge subscription fees. The redemption fee rate is 1.5% for holding periods within 7 days and 0% for holding periods of 7 days (inclusive) or more. The sales service fee is 0.3%. Risk disclosure: Double Innovation 50 ETF Huabao passively tracks the CSI STAR Market and ChiNext 50 Index. The index base date is 2019.12.31, and it was launched on 2021.6.1. The constituent stock composition of the index is adjusted in due course according to the index compilation rules. Its back-tested historical performance does not predict the future performance of the index. The index constituent stocks mentioned in this article are for display only. Individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading trends of any fund under the manager. The fund manager assesses the risk level of Double Innovation 50 ETF Huabao as R4-Medium-High Risk, suitable for investors with aggressive risk profiles (C4) and above. The appropriateness matching opinion shall be subject to the sales agency. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor shall they bear any responsibility for direct or indirect losses arising from the use of the content of this article. Fund investment involves risks. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are performing well!
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