Today (July 20), the A-share market initially surged before retreating. The Huabao CSI Science and Technology Innovation Board and ChiNext 50 Index ETF (SSE: 588330), a broad-based hard-tech ETF covering 50 leading high-growth stocks from the ChiNext and STAR markets, saw its gains briefly reach 3.68%. It is currently up 0.61%, with a real-time turnover of 112 million yuan, indicating active trading.
Capital is accelerating its deployment into the hard-tech sector. Data shows that the Huabao CSI Science and Technology Innovation Board and ChiNext 50 Index ETF (SSE: 588330) has seen continuous net inflows over the past three trading days, totaling 83.60 million yuan. Over a longer period, it has accumulated a significant 212 million yuan in net inflows over the past 60 trading days.
Regarding its constituent stocks, Ruijie Networks Co.,Ltd. led the gains, rising over 6%. Runze Technology, Baili Tianheng, and Contemporary Amperex Technology Co., Limited (C) rose more than 3%. Kingsoft Office, United Imaging Healthcare, Eoptolink Technology Inc.,Ltd., and Zhongji Innolight Co.,Ltd. were among stocks gaining over 2%.
Key market developments are focused on the active optical module and lithium battery sectors:
1. In optical modules, on the evening of July 19, Eoptolink Technology Inc.,Ltd. released its 2026 first-half performance forecast. The company expects net profit attributable to shareholders of 7.0 billion to 8.0 billion yuan for the period, representing a year-on-year increase of 77.56% to 102.93%. This is attributed to sustained growth in AI-related computing power investments and product structure optimization, leading to a significant expected increase in sales revenue and net profit compared to the same period last year.
2. In lithium batteries, three government departments have adjusted the consumption tax on certain battery products. Preferential consumption tax policies for lithium primary batteries and others will be gradually phased out. Starting September 1, 2026, the battery consumption tax policy will be adjusted in steps. Lithium primary batteries, lithium-ion batteries, and photovoltaic batteries will gradually lose their preferential consumption tax treatment. Meanwhile, some new-technology battery products will enjoy a consumption tax exemption for a certain period. Industry insiders suggest this policy adjustment is conducive to better leveraging the regulatory role of consumption tax, promoting resource conservation and environmental protection, and supporting the healthy, high-quality development of the battery industry.
Some analysts believe that the market has already reflected overly pessimistic expectations, while positive factors are accumulating. There is no need for excessive pessimism regarding the A-share market outlook. Indices are forming another relative low point for the year, potentially marking a secondary buying opportunity for 2026. From a medium-term perspective, a continued upward trend for the A-share market is anticipated.
At the current juncture, rather than concentrating bets on a single sub-sector, investors may consider using a broad-based hard-tech ETF to capture multiple hot themes and efficiently participate in the technology rally. Data indicates that since the market rebound in late September 2024, the underlying index of the Huabao CSI Science and Technology Innovation Board and ChiNext 50 Index ETF (SSE: 588330) has surged 174.39%, significantly outperforming major indices like the STAR 50 and ChiNext 50, leading among broad-based hard-tech funds.
The performance data covers the period from September 24, 2024, to July 17, 2026. The annualized volatility of the CSI Sci-Tech Innovation Board and ChiNext 50 Index, the STAR 50 Index, and the ChiNext 50 Index during this interval was 37.55%, 38.38%, and 34.02%, respectively. The annual returns of the CSI Sci-Tech Innovation Board and ChiNext 50 Index from 2021 to 2025 were 0.37%, -28.32%, -18.83%, 13.63%, and 60.86%. The index constituents are adjusted according to its compilation rules, and its past performance does not guarantee future results.
Efficiently Capturing China's Leading Technology
The hard-tech broad-based ETF, the Huabao CSI Science and Technology Innovation Board and ChiNext 50 Index ETF (SSE: 588330) and its off-exchange feeder funds (Class A: 013317, Class C: 013318), track an underlying index that selects 50 listed companies in strategic emerging industries with larger market capitalizations from the STAR Market and ChiNext Board. It encompasses hot themes such as optical modules, semiconductors, and batteries. Its top holdings include leading companies like Contemporary Amperex Technology Co., Limited (C), Zhongji Innolight Co.,Ltd., Cambricon Technologies Corporation Limited, and Semiconductor Manufacturing International Corporation. With a daily price limit of 20%, it may allow for faster rebounds. Additionally, this ETF is eligible for margin trading and short selling and is part of the Stock Connect program, serving as an efficient tool for gaining exposure to new quality productive forces.
Note: The Huabao CSI Science and Technology Innovation Board and ChiNext 50 Index ETF (SSE: 588330) was previously known as the Dual Innovation Leaders ETF for on-exchange trading.
ETF Fee Information: The ETF does not charge a sales service fee. Subscription and redemption agents may charge a commission of up to 0.5%, which includes related fees charged by the stock exchange and registration institutions. On-exchange trading fees are subject to the actual rates charged by securities firms.
Risk Disclosure: The Huabao CSI Science and Technology Innovation Board and ChiNext 50 Index ETF passively tracks the CSI Science and Technology Innovation Board and ChiNext 50 Index. The index base date is December 31, 2019, and it was launched on June 1, 2021. Its constituents are adjusted according to its compilation rules, and its historical back-tested performance does not indicate future results. Constituent stocks mentioned are for illustrative purposes only; descriptions of individual stocks do not constitute investment advice in any form nor represent the holdings or trading activities of any fund managed by the fund manager. The fund manager assesses the risk rating of this ETF as R4 (Medium-High Risk), suitable for aggressive (C4) and above investors. Suitability matching opinions are subject to the sales institution. Any information appearing herein (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors must be responsible for their own independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice to readers and shall not be liable for any direct or indirect losses arising from the use of this content. Fund investment carries risks. 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 this fund's performance. Invest with caution.
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