Markets consolidated on Friday, with major A-share indices closing in the red. The Huabao Electronics ETF (515260), which encompasses popular themes such as PCBs and glass substrates, pulled back alongside the market, with its on-market price closing down 2.93%. This marks its first retreat after hitting a record high the previous day, potentially offering a dip-buying opportunity for capital. In fact, the ETF had seen net inflows of 149 million yuan over the preceding five trading days.
Amidst the heated market activity and active capital deployment, the Huabao Electronics ETF (515260) reached a fresh scale high of 1.045 billion yuan as of June 25, its highest level since June 2021. Since the beginning of this year, its scale has surged by over 77%.
From a technical analysis perspective, following a golden cross of the MACD indicator above the zero line, the fast line (DIF) has continued to run above the slow line (DEA). This signals a continuation of the bullish trend, indicating that short-term market buying power remains dominant and the upward momentum for share prices is still strong.
Regarding constituent stocks, glass substrate concept stock BOE Technology Group Co., Ltd. (SHE: 000725) rose over 3%, attracting net main fund inflows exceeding 3.6 billion yuan for the day, topping the A-share capital inflow chart. Semiconductor silicon wafer concept stock National Silicon Industry Group Co., Ltd. (SHA: 688126) and memory chip concept stock BIWIN Storage Technology Co., Ltd. (SHE: 301525) also gained over 4%, leading the advancers. On the other hand, Apple supply chain leaders Luxshare Precision Industry Co., Ltd. (SHE: 002475) and Foxconn Industrial Internet Co., Ltd. (SHA: 601138) fell more than 8%, leading the decliners and weighing on the index's performance.
On the news front, glass substrate technology has seen a breakthrough. BOE Technology Group Co., Ltd. is targeting the first half of 2026 for the full automation of its glass core packaging substrate pilot line, with a designed capacity of 1,000 panels per month. The company has successfully validated the entire process flow, including TGV via formation, deep via copper filling, build-up, and wiring. It completed the development and sampling of large-sized, high-layer-count (9-2-9, 20 layers) glass core substrates in 2025.
Analysis points out that glass substrates are viewed as the next-generation core material for advanced packaging, surpassing current silicon interposers and organic substrates. With surging demand from AI computing chips (such as those from Ascend and Hygon) for high-frequency signals, high integration, and large-size packaging, and against the backdrop of domestic manufacturers facing patent restrictions on TSMC's silicon substrates, glass substrates have become a critical window for China's advanced packaging industry to achieve a differentiated breakthrough. Currently, glass substrate and TGV technology are at a pivotal juncture for industrial-scale breakthroughs, with AI computing demand providing substantial momentum for industry adoption.
Separately, Apple Inc. (NASDAQ: AAPL) announced price increases for its MacBook and iPad products. Possibly influenced by this news, Apple's stock price tumbled 6.12% overnight in U.S. trading, and the performance of A-share Apple supply chain leaders was also negatively impacted on Friday. Institutional analysis suggests the impact on the supply chain is structurally differentiated, with leading players possessing advantages in bargaining power, cost control, and economies of scale, making them more resilient.
Further analysis indicates that the current supply and demand for memory is in a tight balance. Major Apple supply chain manufacturers have greater stability in securing memory chip supply compared to smaller players, meaning the overall supply chain logic is less impaired. A deeper positive takeaway is that Apple's significant price hike validates the resilience of its end-market demand. If shipment volumes can be maintained post-increase, it suggests the logic of an AI-driven device replacement cycle remains intact, maintaining a positive outlook for core Apple supply chain targets.
Exposure to Tech Giants for Strategic Positioning
The Huabao Electronics ETF (515260) and its feeder funds track the CSI Electronics 50 Index. It has a heavy weighting in the semiconductor and consumer electronics sectors, aggregating exposure to popular themes like PCBs, MLCCs, glass substrates, memory chips, and semiconductor equipment. Its top holdings include stocks like Luxshare Precision Industry Co., Ltd., Cambricon Technologies Corporation Limited (SHA: 688256), Foxconn Industrial Internet Co., Ltd., and Semiconductor Manufacturing International Corporation (SHA: 688981). Additionally, this ETF is eligible for margin trading and is included in the Stock Connect programs, making it an efficient tool for a one-click allocation to core electronic sector assets.
Data shows the Huabao Electronics ETF's underlying index is deeply linked to global technology leaders. As of the end of May, the weightings of the Apple, NVIDIA Corporation (NASDAQ: NVDA), and Alphabet Inc. (NASDAQ: GOOG) supply chains were 49.34%, 28.50%, and 23.85% respectively, positioning it to potentially benefit from the industrial expansion and technological innovation of these tech giants.
Comments