On July 17th, the market opened lower and continued to decline throughout the morning session, with major indices experiencing broad-based losses. The ChiNext Index fell over 4%, the Shenzhen Component Index dropped more than 3%, and the Shanghai Composite Index declined over 1%. Affected by the market downturn, the ChiNext 50 ETF Huaan (159949) dropped 4.92% in the morning to 1.681 yuan, with a turnover rate of 11.38% and a trading volume of 2.262 billion yuan, leading its peer group of target ETFs.
On the news front, the National Energy Administration released data on June's electricity consumption. Total electricity consumption for society reached 898.1 billion kilowatt-hours in June, a year-on-year increase of 3.7%. Electricity consumption for the secondary industry was 573.4 billion kilowatt-hours, up 4.7% year-on-year, with industrial electricity consumption at 568.3 billion kilowatt-hours, rising 4.9%. Notably, electricity consumption for high-tech and equipment manufacturing reached 112.1 billion kilowatt-hours, surging 10.3% year-on-year. Consumption for the tertiary industry was 186.0 billion kilowatt-hours, an increase of 5.6%, within which the battery swapping/charging service and internet data service sectors consumed 14.8 billion and 9.1 billion kilowatt-hours respectively, showing remarkable growth rates of 57.1% and 41.4%.
Hua Bao Fund's perspective suggests that from a long-term viewpoint, the overall peak of the current technology sector rally may not have been reached. The cooling in the self-reliance and controllable industrial chain is more likely due to market considerations to reduce volatility. While a technical rebound in the near term may not eliminate all profit-taking pressure in this sector, after a period of consolidation, the market's long-term conviction in the tech theme, especially the self-reliance direction, remains intact. Several industry catalysts are anticipated in the third and fourth quarters, suggesting overall downside risk is relatively limited.
Regarding the full-year trajectory for the A-share market, East Money strategist Chen Guo maintains a forecast of an "N-shaped" pattern, believing the current period presents a rare "golden buying opportunity" for the year, with major indices likely to reach new highs in the second half. The core rationale includes: Q2 GDP growth (4.3%) likely marking the economic bottom, with improvement expected in H2; Q2's micro-funding environment for A-shares representing a funding bottom, also poised for H2 improvement; sentiment indicators showing recent market sentiment is near lows; a large number of "old economy" assets being in the early stages of profit recovery in H2 while valuations remain low; and several high-quality Chinese tech companies expected to list on the A-share market in H2, potentially attracting incremental funds and boosting market activity and risk appetite. Chen Guo believes these five conditions are superior to those in H1, suggesting Chinese stocks could stabilize and trend upward relatively quickly. In terms of allocation, he remains optimistic about non-bank financials, traditional and new energy, internet, pharmaceuticals, consumer sectors, and genuine tech leaders within the domestic AI industry chain.
The ChiNext 50 ETF Huaan (159949) offers a convenient tool for investors with long-term confidence in China's technology and growth sectors. As of July 16, 2026, the product has delivered an 86.64% return over the past three years, outperforming its benchmark and ranking 164th among 1,772 peer products. Investors can trade this ETF directly through a stock brokerage account or participate via its feeder funds (Class A: 160422; Class C: 160424; Class I: 022654; Class Y: 022976). From an operational standpoint, adopting a dollar-cost averaging strategy or deploying capital in phases is recommended to smooth out short-term volatility, while closely monitoring the performance delivery of constituent stocks and relevant policy developments.
Risk Warning: Fund investment carries risks and requires careful consideration. The ChiNext 50 ETF is a product with relatively higher risk and higher expected returns, and its net value performance is closely linked to the ChiNext market. Investors should carefully read the fund's legal documents and make prudent decisions.
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