The market consolidated today (July 7th), with the three major A-share indices all closing in negative territory. The STAR ChiNext 50 ETF Huabao (588330), a broad-based hard technology fund covering 50 leading high-growth stocks from the ChiNext and STAR Market, followed the market lower, closing down 0.6% in on-exchange price. Data shows that over the last five trading sessions, this ETF saw net capital inflows on three days, accumulating a total attraction of 1.28 billion yuan. This reflects capital's positive outlook on the future performance of the hard tech sector and active positioning.
While the overall market performance was sluggish, there were notable sparks within the hard tech sector, with several bright spots emerging.
In the computing power chip segment, Muxi Co., Ltd.-U led the gains, rising over 14%, followed by Moore Thread Intelligent Technology Beijing Co., Ltd.-U up more than 4%, with stocks like Cambricon Technologies Corporation Limited and Loongson Technology Corporation Limited also rising. Following significant price increases for storage and memory, CPUs have now joined the price hike trend. Market sources indicate that Intel has raised prices for some consumer-grade and server CPUs, with overall increases for high-end Xeon server products reaching between 7% and 12%.
Industry insiders point out that the signal of CPU price hikes opens up the valuation imagination for computing power chips. As the "price hike wave" spreads from storage to CPUs, the market is realizing that the "scarcity premium" for AI computing hardware is not an isolated phenomenon for a single product category but a broad trend throughout the entire semiconductor supply chain. This has led capital to begin exploring the "valuation depressions" within the computing power chip field that have not yet been fully priced. Domestic leaders in computing power chips like Muxi Co., Ltd. are at a critical stage of accelerating commercial implementation, which may directly catalyze the advance pricing of their future profit elasticity.
On the device-side AI front, Transsion Holdings rose over 5%, while VeriSilicon Microelectronics (Shanghai) Co., Ltd. and Lens Technology Co., Ltd. both gained more than 1%. It is reported that Broadcom announced an expansion of its strategic partnership with Apple, extending the custom ASIC chip contract to 2031. It will develop and supply custom AI acceleration chips for multiple generations of iPhone, Mac, and Vision Pro products, strengthening the terminal-side AI computing power layout. Additionally, Apple's first foldable iPhone is already in the mass production stage, with progress accelerating.
Looking ahead, China Securities (CSC) believes that the AI computing power and semiconductor sectors will focus more on earnings certainty in the next stage, and the industrial logic of AI is expected to be validated in the semi-annual reports. Currently, several companies in the AI industry chain have released performance forecasts, showing strong year-on-year growth in net profit. In terms of allocation, the market trend is expected to extend from the extremely concentrated computing power hardware end to more cost-effective areas, forming a diffusion pattern of "high-to-low rotation and multiple points of growth."*
At the current juncture, market trends are gradually spreading out from extreme concentration on a single main theme. Compared to heavily betting on a single sub-sector, a broad-based hard technology fund that bundles together popular directions offers a more efficient way to cover the technology market. Data shows that since the "9.24" market rally, the underlying index of the STAR ChiNext 50 ETF Huabao (588330) has cumulatively risen 220.83%, significantly outperforming major indices like the STAR 50 and ChiNext 50, leading among broad-based hard technology funds.
Statistical data interval: 2024.9.24-2026.7.7. The annual performance changes of the S&P China A-Share CSI STAR & ChiNext 50 Index from 2021 to 2025 were: 0.37%, -28.32%, -18.83%, 13.63%, 60.86%. The index composition is adjusted according to its compilation rules, and its back-tested historical performance does not indicate future performance.
Navigating Market Rotations with a Single Basket of China's Core Technologies
The broad-based hard technology fund—STAR ChiNext 50 ETF Huabao (588330) and its off-exchange feeder funds (Class A: 013317, Class C: 013318)—selects the 50 largest listed companies in strategic emerging industries from the STAR Market and ChiNext Board as its index components. It encompasses popular themes such as optical modules, semiconductors, and photovoltaic equipment. Its top holdings include leading stocks like Contemporary Amperex Technology Co., Limited, Zhongji Innolight Co., Ltd., Cambricon Technologies Corporation Limited, and Semiconductor Manufacturing International Corporation. With a 20% daily price fluctuation limit, capturing rebounds may be faster. Simultaneously, this ETF is eligible for margin trading and securities lending and is included in the Stock Connect program, making it an efficient tool for a one-click allocation to new quality productive forces.
*Institutional views reference sources: Guotai Haitong Securities report dated May 29th titled "Under the Wave of Inference and Agentic AI, CPUs Return to the Core Hub of AI Infrastructure"; China Securities (CSC) report dated July 5th titled "China Securities: A-Shares Transition from 'Concentrated Crowding' to 'A Hundred Flowers Blooming'".
Note: STAR ChiNext 50 ETF Huabao (588330) was previously referred to on-exchange as the "ChiNext & STAR Leaders ETF".
ETF fee-related explanation: The ETF does not charge a sales service fee. Subscription and redemption agents may charge a commission not exceeding 0.5%, which includes related fees charged by stock exchanges and registration institutions. On-exchange trading fees are subject to the actual charges by securities firms.
Risk Disclosure: STAR ChiNext 50 ETF Huabao passively tracks the S&P China A-Share CSI STAR & ChiNext 50 Index. The base date for this index is December 31, 2019, and it was launched on June 1, 2021. The Big Data ETF Huabao passively tracks the CSI Big Data Industry Index. The base date for this index is December 31, 2012, and it was launched on October 18, 2016. The IT Application Innovation ETF Huabao passively tracks the CSI IT Application Innovation Index. The base date for this index is December 29, 2017, and it was launched on December 21, 2012. The Software Development ETF Huabao passively tracks the CSI All Share Software Development Index. The base date for this index is December 31, 2021, and it was launched on March 29, 2023. Index constituent stocks are adjusted according to the index compilation rules, and their back-tested historical performance does not indicate future performance. Index constituent stocks mentioned in the article are for illustrative purposes only. Descriptions of individual stocks are not investment advice in any form and do not represent the holdings information or trading动向 of any fund managed by the fund manager. The fund manager assesses the risk rating of STAR ChiNext 50 ETF Huabao as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. The risk ratings for STAR ChiNext 50 ETF Huabao, Big Data ETF Huabao, IT Application Innovation ETF Huabao, and Software Development ETF Huabao are R3 - Medium Risk, suitable for Balanced (C3) and above investors. The appropriateness matching opinion is subject to the sales institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses arising from the use of the content herein. Fund investment involves risks. The 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 the fund's performance. Invest in funds with caution.
A MACD golden cross signal has formed, and these stocks are performing well!
Comments