On November 4, AI hardware stocks rebounded from their decline, with the underlying index of the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190), which has relatively low fees among similar products, gaining more than 2%. Bestechnic led gains with a double-digit increase, Espressif Systems rose over 9%, and 3PEAK, Anji Technology, Aojie Technology-U, and Moore Threads-U were among the top performers.
Overnight, US AI hardware stocks rallied collectively. AI giant Anthropic reported substantial third-quarter revenue growth, while Advanced Micro Devices' after-hours third-quarter financial results and fourth-quarter revenue outlook both exceeded Wall Street expectations, demonstrating the sustainability of AI spending and helping to ease market tensions. Morgan Stanley's latest view suggests that capital expenditure in the artificial intelligence sector could reach $10 trillion to $15 trillion over the next decade, with leading hyperscale technology companies potentially investing $800 billion to $1 trillion annually over the next 7 to 12 years.
Domestically, Cxmt Corporation (688825) significantly increased its share buyback amount. This morning, Cxmt Corporation announced that it would raise its share repurchase amount from "no less than 1 billion yuan (inclusive) and no more than 2 billion yuan (inclusive)" to "no less than 2.5 billion yuan (inclusive) and no more than 5 billion yuan (inclusive)." The revised upper limit of the buyback amount represents 2.9% of the company's current circulating market value, which is a relatively high level among technology companies. This move conveys confidence in the company's future sustainable development and high recognition of the company's value, helping to enhance investor confidence in the company.
After this round of correction, AI hardware valuations have declined noticeably. UBS pointed out that profit growth for Chinese technology hardware remains strong, with earnings forecasts for most AI technology stocks revised up by 12% to 15% over the past three months. However, valuations have approached historical lows and imply a significant slowdown in future earnings growth. Historically, when valuations reached similar levels, the relevant stocks rose by an average of more than 50% over the following 12 months.
As of the end of October, the price-to-earnings ratio (TTM) of the SSE STAR Chip Index stood at 90.3 times, placing it at a relatively low level of approximately the 30th percentile since the index was launched. For investors, selecting specific segments within the chip sector is highly challenging, making it more practical to gain exposure through an index covering the entire chip industry chain. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) passively tracks the SSE STAR Chip Index, covering the entire chip industry chain, with heavy positions in core segments such as AI chips, storage, and semiconductor equipment and materials. It effectively maps the industry development trends brought about by the continuous upgrading of AI computing infrastructure, offering strong offensive characteristics and 20CM high elasticity. Off-market investors can consider the feeder fund 021225.
Public data shows that the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) has a management fee of 0.3%, a custody fee of 0.08%, and a combined fee of 0.38%, which is relatively low among ETFs tracking the same index. Data source: Shanghai and Shenzhen Stock Exchanges, Wind, etc. Institutional view source: UBS 261028 "China AI Tech Hardware Valuation Near Historical Lows, Risk-Reward Turning Attractive." ETF fee-related notes: When investors subscribe to or redeem fund shares, the subscription and redemption agent may charge a commission of no more than 0.5%, which includes fees charged by stock exchanges, registration institutions, and others. Feeder fund fee-related notes: Huabao SSE STAR Chip ETF Feeder A subscription fee (front-end) is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.2% for 1 million yuan (inclusive) to 2 million yuan, and 0.5% for amounts below 1 million yuan; the redemption fee is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more. Huabao SSE STAR Chip ETF Feeder C does not charge a subscription fee, with a redemption fee of 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more; the sales service fee is 0.2%.
Risk disclosure: The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) and its feeder funds passively track the SSE STAR Chip Index, whose base date is December 31, 2019, and launch date is June 13, 2022. The SSE STAR Chip Index's returns over the past 5 complete fiscal years were 6.87% in 2021, -33.69% in 2022, 7.26% in 2023, 34.52% in 2024, and 61.33% in 2025. The SSE STAR Chip Index's volatility over the past 5 complete fiscal years was 34.32% in 2021, 36.60% in 2022, 28.64% in 2023, 44.67% in 2024, and 34.34% in 2025. The index constituent stocks are adjusted from time to time according to the index compilation rules, and its back-tested historical performance does not predict the future performance of the index. This product is issued and managed by Huabao Fund, and the distribution agency does not assume responsibility for investment, redemption, or risk management of the product. Investors should carefully read the fund legal documents such as the Fund Contract, Prospectus, and Fund Product Information Summary to understand the risk and return characteristics of the fund and choose products suitable for their own risk tolerance. The risk rating of this fund as assessed by the fund manager is R4-medium-high risk, suitable for investors with suitability ratings of C4 and above. The performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Past performance of the fund does not predict its future performance. Funds involve risks, and investment should be made with caution! Distribution agencies (including the fund manager's direct sales agency and other distribution agencies) conduct risk assessments of this fund in accordance with relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. The suitability opinions of various distribution agencies may not necessarily be consistent, and the fund product risk rating results issued by fund distribution agencies shall not be lower than the risk rating results made by the fund manager. There are differences between the fund's risk and return characteristics and the fund's risk rating in the fund contract due to different consideration factors. Investors should understand the risk and return situation of the fund, carefully select fund products based on their own investment objectives, duration, investment experience, and risk tolerance, and bear the risks themselves. The registration of this fund by the China Securities Regulatory Commission does not indicate that it makes any substantive judgment or guarantee on the investment value, market prospects, or returns of this fund. Funds involve risks, and investment should be made with caution! MACD golden cross signals have formed, and these stocks are performing well!
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