On Friday (October 30), the market continued its consolidation, with all major A-share indices closing lower. The hard-tech broad-based fund covering high-growth leaders from ChiNext and the STAR Market 鈥?Huabao CSI STAR and ChiNext 50 ETF (588330) 鈥?saw its tracked index pull back with the market, ultimately closing down 5.12%. The index has now retreated to levels seen in August last year, suggesting valuation appeal may be emerging. In fact, over the past 20-plus trading sessions, capital has maintained a consistently high level of attention on this product.
Among constituent stocks, power equipment leaders were active against the broader market decline. Wuxi Lead Intelligent Equipment led gains, rising more than 4%. EVE Energy, Yitang Co Ltd, CATL, Mindray Medical, and Baili Tianheng each gained over 1%, while the remaining 44 stocks declined. Optical module leader Eoptolink Technology led the declines, falling 14%, while T&S Communications dropped more than 8%, and Zhongji Innolight fell nearly 5%.
Facing the volatility head-on: what exactly is the market adjusting to?
The global AI narrative is undergoing a stress test. Revenue growth at frontier model companies OpenAI and Anthropic is decelerating at the margin, and the financing costs and equipment depreciation pressures of some highly leveraged cloud providers are becoming more visible. Market confidence in whether AI capital expenditure can continue to expand has consequently weakened, risk appetite has declined, and multiple markets have adjusted in sync. At the same time, the mutual reinforcement of high debt and high interest rates in the US and Europe is shaking the stability of global interest rate benchmarks and the financing system. For the A-share market, this is an unavoidable external disturbance.
Key individual stocks: optical module giants' Q3 results in focus
As of now, all three optical module giants have disclosed their third-quarter earnings reports. Specifically: 1. Zhongji Innolight: Q3 revenue of 27.769 billion yuan (up 171.8% year-on-year), net profit attributable to parent of 8.587 billion yuan (up 173.7% year-on-year), continuing to hit new highs on a sequential basis, with non-GAAP profit exceeding GAAP net profit. Orders have basically covered through 2027, making this the fastest-growing and highest-quality earnings report among the three. 2. Eoptolink Technology: Q3 revenue and net profit attributable to parent both surged year-on-year (revenue of 10.940 billion yuan, up 80.3% year-on-year; net profit attributable to parent of 3.843 billion yuan, up 61.2% year-on-year), but declined on a sequential basis (-13.0%/-19.1%), breaking the record of consecutive sequential revenue growth since Q1 2023. The company explained that flooding in Thailand disrupted shipments and customs clearance at the end of September, with some revenue deferred to early October recognition. This is more akin to a "correction in pace and expectations" and should not be characterized as "fundamental deterioration." 3. T&S Communications: Q3 revenue of 1.923 billion yuan (up 31.5% year-on-year), net profit attributable to parent of 879 million yuan (up 55.3% year-on-year), with gross margin hitting a new high (65.0%) and revenue accelerating sequentially, reflecting good operational quality.
In summary, third-quarter results confirm that the volume-price structure of AI optical modules is still improving (none of the three saw gross margin deterioration, order visibility extends to 2027-2028, and CPO/NPO are entering the delivery phase), and the industry trend has not been disproven. The current decline stems more from disturbances in the overseas AI narrative (negative free cash flow at Google, disappointing Samsung semiconductor earnings expectations), compounded by concentrated turnover of crowded high-level positions in A-shares and style rebalancing.
Tianfeng Securities notes that the market has entered the bottom range of this round of adjustment. The decline is primarily driven by valuation contraction, while the industry trend has not been disproven. From a risk-reward perspective, the allocation value of tech growth has improved, and if a rebound occurs, the STAR Market and ChiNext directions are favored.
On the valuation front, the tracked index of Huabao CSI STAR and ChiNext 50 ETF (588330) currently has a price-to-earnings ratio (PE, TTM) of 33.74x, below the median of 40.69x and at the relatively low 26.09th percentile since listing. The valuation pullback is significant, and for tech leaders with continuously deliverable earnings, long-term value appeal has become evident.
Data shows that since hitting a historic high on July 1, as of October 29, the hard-tech broad-based indices (CSI STAR and ChiNext 50, STAR 50, ChiNext 50) have all retraced more than 44%. However, during this period, ETFs tracking these three indices across the market collectively received net capital inflows of up to 172.6 billion yuan, exhibiting a "buy more as prices fall" pattern. Market volatility has not deterred capital; instead, it has attracted real money in support.
Unfazed by rotation, one-click access to China's top tech
The hard-tech broad-based fund 鈥?Huabao CSI STAR and ChiNext 50 ETF (588330) and its off-exchange feeder funds (Class A: 013317, Class C: 013318) 鈥?selects 50 strategic emerging industry companies with larger market capitalizations from the STAR Market and ChiNext, providing 100% exposure to new quality productive forces. Optical modules account for 31%, semiconductors 43%, and batteries 11%. Major holdings include tech leaders such as Eoptolink Technology, Zhongji Innolight, CATL, and Cambricon Technologies. With a 20% daily price limit, the ETF offers low-threshold entry to capture the breakout potential of the dual-innovation track. Meanwhile, the ETF is a margin trading and short selling plus Stock Connect eligible product, making it an efficient tool for one-click allocation to new quality productive forces.
Note: Huabao CSI STAR and ChiNext 50 ETF (588330) was previously known on-exchange as the Dual-Innovation Leaders ETF. Note: The optical module exposure comparison index is the Optical Module (CPO) Index. Semiconductor and battery exposures are classified according to the Shenwan secondary industry classification. Source: Shanghai and Shenzhen Stock Exchanges, etc., as of October 29, 2026. *Institutional views reference source: Tianfeng Securities' report titled "Storming the Bull: Another Push in the Second Half 鈥?2026 Autumn Strategy Report," published on August 21.
ETF fee-related disclosure: ETFs do not charge sales service fees. Subscription and redemption agents may charge commissions at a rate not exceeding 0.5%, which includes related fees charged by stock exchanges and registration institutions. On-exchange trading fees are subject to actual charges by securities companies. Feeder fund fee disclosure: Huabao CSI STAR and ChiNext 50 ETF Initiating Feeder Fund (Class A) subscription fee rate is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1% for amounts below 1 million yuan. Redemption fee rate is 1.5% for holding periods of less than 7 days, 0.1% for holding periods of 7 days (inclusive) to 30 days, and 0% for holding periods of 30 days (inclusive) or more. No sales service fee is charged. Huabao CSI STAR and ChiNext 50 ETF Initiating Feeder Fund (Class C) does not charge subscription fees. Redemption fee rate is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more. Sales service fee is 0.3%.
Risk disclosure: Huabao CSI STAR and ChiNext 50 ETF passively tracks the CSI STAR and ChiNext 50 Index. The index base date is December 31, 2019, and it was launched on June 1, 2021. Index constituent composition is adjusted in a timely manner according to the index compilation rules. Its back-tested historical performance does not predict future index performance. The index constituent stocks mentioned in this article are for illustrative purposes only. Individual stock descriptions do not constitute investment advice in any form and do not represent the holdings or trading activities of any fund managed by the manager. The fund manager assesses the risk level of Huabao CSI STAR and ChiNext 50 ETF as R4-Medium-High Risk, suitable for investors with a positive risk profile (C4) or above. Suitability matching opinions should be based on the selling institution. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors are responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice of any kind to readers and do not bear any responsibility for direct or indirect losses arising from the use of the content herein. Fund investment involves risks. Past performance of a fund does not represent its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Fund investment requires caution. MACD golden cross signals have formed. These stocks are performing well!
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