On April 2, the market faced renewed pressure, with technology stocks weakening and the ChiNext AI segment declining by 3%. Computing power rental stocks led the decline, with companies such as 21Vianet Group, Wangsu Science & Technology Inc., and Dr. Peng Telecom & Media Group falling over 6%. However, the CPO (Co-Packaged Optics) module sector remained active, with Advanced Fiber Resources (Zhuhai), Ltd. rising 8% against the trend to hit a new high, while T&S Communications Co., Ltd. and Zhaolong Interconnect also closed in positive territory.
Amid the market consolidation, investors took advantage of lower prices to build positions. The largest and most liquid ChiNext AI ETF, Huabao (159363), fell over 3% during the session, attracting repeated buying on dips, with real-time net subscriptions reaching 36 million units.
On the news front, NVIDIA announced on April 1, 2026, a $2 billion investment in Marvell, with the two companies collaborating on the development of silicon photonics technology and custom XPUs. According to LightCounting, the market share of silicon photonics in the optical module sector is expected to gradually increase, potentially rising from 30% in 2025 to 60% by 2030.
As the market enters a reconfiguration window following the first quarter's close, Guolian Minsheng Securities recommends focusing on sectors with strong first-quarter earnings performance. The firm notes that the AI technology revolution is driving a new growth cycle, creating significant opportunities in optical connectivity, domestic computing power, AI edge applications, and commercial aerospace. It advises selecting leading companies with solid earnings support, such as top optical module manufacturers.
Zhongtai Securities indicated that within the technology sector, mid-to-upstream segments show notable resilience, while the energy chain within cyclical sectors is strengthening. Looking ahead, short-term market volatility may persist, but systemic sharp declines are unlikely. Structural opportunities are expected to emerge in high-growth tracks with strong independent momentum, suggesting investors accumulate positions during dips to capture dual benefits from earnings and valuation recovery as market sentiment stabilizes.
To capture opportunities in AI computing power, investors may consider the ChiNext AI ETF (159363) and its feeder funds (Class A: 023407, Class C: 023408), which focus on leading optical module companies and stand to benefit directly from the commercialization of AI technology. The ETF allocates approximately 60% of its portfolio to computing power (including CPO leaders) and about 40% to AI applications, positioning it not only as a core play on computing infrastructure but also as a representative vehicle for AI-driven growth.
Data source: Shanghai and Shenzhen Stock Exchanges.
ETF fee note: Subscription and redemption agents may charge a commission of up to 0.5% when investors purchase or redeem fund units. Trading fees are subject to securities firms' actual charges, with no sales service fee applied.
Feeder fund fee note: The ChiNext AI ETF feeder fund Class C does not charge a subscription fee. A redemption fee of 1.5% applies for holdings under 7 days, and 0% for 7 days or more. A sales service fee of 0.3% is charged. For Class A, subscription fees are 1% for amounts below RMB 1 million, 0.6% for RMB 1–2 million, and a flat fee of RMB 1,000 for amounts above RMB 2 million. Redemption fees are 1.5% for holdings under 7 days and 0% for 7 days or more. No sales service fee is charged.
Risk disclosure: The Huabao ChiNext AI ETF passively tracks the ChiNext Artificial Intelligence Index, which has a base date of December 28, 2018, and was launched on July 11, 2024. The index's annual performance from 2021 to 2025 was 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively. Index constituents are adjusted according to the index methodology, and past performance does not indicate future results. Mentioned constituents are for illustrative purposes only and do not constitute investment advice or reflect the fund manager's holdings or trading activities. The fund manager assesses this fund as R4—moderately high risk, suitable for aggressive (C4) or higher risk-profile investors. Suitability assessments are determined by selling institutions. All information provided is for reference only, and investors are responsible for their own investment decisions. Views, analyses, and forecasts do not constitute investment advice, and no liability is accepted for losses arising from the use of this content. Fund investments carry risks; past performance does not guarantee future results, and the performance of other funds managed by the manager does not indicate future performance of this fund. Invest with caution.
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