During the intraday session on November 10, the AI sector continued to show active trading, with the ChiNext Artificial Intelligence ETF Huabao (159363), which focuses on optical module leaders, seeing its underlying index open higher and surge over 4%, currently up more than 3%, drawing significant capital attention.
Among the constituent stocks, optical module leaders continued to recover from their lows, with Eoptolink Technology Inc.,Ltd. (300502) and Zhongji Innolight Co.,Ltd. (300308) rebounding over 5%, while T&S Communications rose more than 3%; on the AI application side, activity was also seen, with Huace Film & TV leading gains at over 11% and Chinese Online rising more than 3%.
Guosheng Securities pointed out that the conclusion of the U.S. midterm elections could be an opportunity for AI to shift gears forward. This "gear shift" will not only compel the industry to digest internalized costs through technological upgrades but also prompt cloud providers to accelerate the transfer of computing nodes overseas; this precisely opens a new window for China in supply chain segments with global advantages, such as optical modules, liquid cooling, and power supply equipment.
The institution previously noted in a review that the optical module sector has experienced three rounds of deep corrections since the AI rally began in 2023, and after each adjustment, it completed valuation repairs and reached new highs based on earnings realization. The current third round of adjustment has shifted the contradiction from the demand side to the financial and financing sides: under high interest rates, North American cloud providers' free cash flow is under pressure, and the market worries that high financing costs will backfire on capital expenditure growth, compounded by slowing ARR realization and supply chain audit anxieties, making panic sentiment easily transmit to the hardware side.
Guosheng Securities stated that "financing friction" is not "demand disappearance," and the logic of the optical interconnect industry has not been broken. The common pattern of the three adjustments is that the market always tries to linearly extrapolate short-term disturbances into the end of long-term trends, while industry evolution often disproves pessimistic expectations with orders and financial report data. Currently, leaders are in the "platform period" of rapid 1.6T volume ramp-up, and short-term mismatches are merely a buildup on the growth curve; after crossing the critical point, earnings will be more fully released.
*To position in optical module leaders + AI applications, it is suggested to pay attention to ChiNext Artificial Intelligence ETF Huabao (159363) and its off-exchange feeder funds (Class A 023407, Class C 023408), focusing on optical module CPO leaders while also covering AI applications. The underlying index's "Zhongji Innolight + Eoptolink + T&S Communications" content is about 30%, making it a core standard-bearer for AI computing power.
Data source: Shanghai and Shenzhen Stock Exchanges, Wind, etc. Note: As of October 31, 2026, according to the China Securities Index, the top three constituent stocks of the ChiNext Artificial Intelligence Index are Zhongji Innolight (weight 11.49%), Eoptolink (weight 9.08%), and T&S Communications (weight 8.51%).
Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors must invest rationally based on their own financial conditions and risk tolerance, and pay high attention to position and risk management.
*Institutional views reference source: Guosheng Securities' "Three-Year Review of Optical Modules: Attribution and Insights from Three Rounds of Adjustments."
ETF fund-related fee explanation: When investors subscribe or redeem fund shares, the subscription and redemption agency may charge a commission of no more than 0.5%. On-exchange transaction fees are subject to actual charges by securities companies, and no sales service fee is charged.
Feeder fund-related fee explanation: Huabao ChiNext Artificial Intelligence ETF Initiating Feeder C does not charge subscription fees; redemption fees are 1.5% within 7 days and 0% from 7 days (inclusive) onward; sales service fee is 0.3%. Huabao ChiNext Artificial Intelligence ETF Initiating Feeder A subscription fee is 1% for amounts under 1 million yuan, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1,000 yuan per transaction for 2 million yuan (inclusive) and above; redemption fees are 1.5% within 7 days and 0% from 7 days (inclusive) onward; no sales service fee is charged.
According to the fund manager's assessment, the risk levels of ChiNext Artificial Intelligence ETF Huabao, Hong Kong Stock Connect Information Technology ETF Huabao, and STAR Chip ETF Huabao are R4-Medium-High Risk, suitable for aggressive (C4) and above investors; please refer to the sales agency for suitability matching opinions.
Risk warning: ChiNext Artificial Intelligence ETF Huabao passively tracks the ChiNext Artificial Intelligence Index. The index base date is December 28, 2018, and the release date is July 11, 2024. The annual returns of the index from 2021 to 2025 are: 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively. The annualized volatility of the index during the same period is 23.73%, 27.34%, 38.02%, 45.42%, and 41.1%. The constituent stocks of the index are adjusted in a timely manner according to the index compilation rules, and 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 purposes only, and individual stock descriptions do not constitute any form of investment advice, nor do they represent the holdings or trading movements of any funds under the manager. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, 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 predictions in this article do not constitute any form of investment advice to readers, nor do they assume any responsibility for direct or indirect losses caused by the use of this content. Fund investment involves risks, past performance of funds does not represent future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Fund investment should be approached with caution.
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