On Friday (July 24), while the broader technology sector experienced a widespread decline, the semiconductor supply chain staged a counter-trend rally in the afternoon, becoming a bright spot during the session. The domestic pioneer technology index ETF, Huabao Technology ETF (515000), briefly turned positive intraday with a gain of over 1% before closing down 0.67%, yet its weekly chart snapped a three-week losing streak to close in the green.
Constituent stock performance was mixed. The packaging leader Tongfu Microelectronics Co.,Ltd. (002156) hit the daily limit-up before paring gains, eventually closing up 9.77%. Semiconductor equipment leader Piotech Inc. (688072) and edge AI chip leader Amlogic (Shanghai) Co.,Ltd. (688099) both rose over 6%. In contrast, storage chips and optical modules continued their correction, with Biwin Storage Technology Co.,Ltd. (688525) falling 5.6%, Suzhou Tfc Optical Communication Co.,Ltd. (300394) dropping over 4%, and Zhongji Innolight Co.,Ltd. (300308) declining over 2%.
Currently, multiple positive factors are converging to build repair momentum for the technology sector: a dense cluster of mid-year earnings pre-announcements from leading tech companies, a rising willingness among listed firms to conduct share buybacks and increase holdings, combined with an orderly inflow of incremental capital, which is expected to gradually solidify market confidence.
1. Earnings Tailwinds — Dense Mid-Year Pre-Announcements Highlight Strong Leader Performance.
Since July, over a hundred technology companies have issued positive earnings pre-announcements. On the evening of July 24, Amlogic (Shanghai) Co.,Ltd. (688099) disclosed its half-year report forecast, expecting net profit attributable to the parent for the first half to be 608 million yuan, a year-on-year increase of 22.44%. On the same day, Tongfu Microelectronics Co.,Ltd. (002156) announced it expects net profit attributable to the parent for the first half to be between 1.6 billion and 1.8 billion yuan, a surge of 288.26% to 336.80% year-on-year, demonstrating significant earnings flexibility.
2. Buybacks and Share Increases — Listed Companies Actively Demonstrate Confidence.
Recently, the wave of "share increases and buybacks" in the technology sector has continued to expand. This week, several tech leaders, including Dongshan Precision, Montage Technology, Longsys, and Biwin Storage Technology Co.,Ltd. (688525), have joined the ranks of share increase and buyback announcements. Wind data shows that this week, 27 listed companies in the technology sector (classified under the Shenwan primary industries of Electronics, Computers, and Communication) have collectively set a maximum planned buyback amount exceeding 4.5 billion yuan.
3. Capital Flow Catalysts — Long-Term Capital Accelerates Entry, Sending Positive Signals.
China Chengtong and China Guoxin have initiated counter-cyclical positioning, with an investment scale approaching 60 billion yuan, providing crucial capital support to the market. Multiple insurance funds have explicitly stated they will increase allocations to hard-tech sectors, signaling increasingly clear long-term capital entry. Mutual funds have simultaneously and significantly increased their technology holdings. Northbound capital achieved net inflows in the second quarter, with the information technology sector seeing notable allocation increases, indicating a recovery in foreign capital allocation willingness.
Looking ahead, foreign institutions are reaffirming their bullish outlook on technology and AI thematic investment opportunities. UBS stated that the rapid sell-off in momentum stocks may be nearing its end, creating an opportunity for investors to rebuild positions in artificial intelligence (AI) and semiconductor stocks. After recent sharp volatility in global capital markets and some unwinding of crowded trades in the technology sector, technology and AI remain the market's main theme for the second half of the year.
Tech bull, buy leaders! The Huabao Technology ETF (515000) and its linked funds (Link A: 007873, Link C: 007874) select 50 listed companies from the technology sector based on large scale, high market share, strong growth capability, and high R&D investment. They centrally represent the core assets of A-share tech leaders, possessing both "hard-tech beta" and "outperforming leader excess alpha" attributes, aggregating leaders in sub-sectors such as optical modules, semiconductor equipment, storage chips, PCBs, and innovative drugs.
Data source: Shanghai and Shenzhen stock exchanges, etc. Note: "Domestic pioneer" refers to the first ETF tracking the CSI Tech Leading Enterprises Index.
*Institutional view reference source: UBS Securities "After short-term volatility, continue to be bullish on technology and AI as the main market themes for the second half of the year"
ETF fund related fee explanation: When investors subscribe for or redeem fund shares, the subscription and redemption agency may charge a commission at a standard not exceeding 0.5%. On-exchange trading fees are subject to the actual charges of the securities company, with no sales service fee charged.
Linked fund related fee explanation: For Huabao Technology ETF Link A, the subscription fee is 1.00% for amounts under 1 million yuan, 0.60% for amounts between 1 million yuan (inclusive) and 2 million yuan, and a fixed 1,000 yuan per transaction for amounts of 2 million yuan (inclusive) and above. The redemption fee is 1.50% within 7 days, 0.50% from 7 days (inclusive) to 180 days, and 0.00% from 180 days (inclusive) onwards. No sales service fee is charged. For Huabao Technology ETF Link C, no subscription fee is charged. The redemption fee is 1.50% within 7 days and 0.00% from 7 days (inclusive) onwards. The annual sales service fee is 0.40%. ETF subscription and redemption agencies may charge a commission at a standard not exceeding 0.5%. On-exchange trading fees are subject to the actual charges of the securities company.
Risk disclaimer: Huabao Technology ETF (515000) passively tracks the CSI Tech Leading Enterprises Index. The base date of this index is 2012.6.29, and it was published on 2019.3.20. The composition of the index constituents is adjusted in accordance with the index compilation rules. Its back-tested historical performance does not predict the future performance of the index. The index constituent stocks displayed in this article are for demonstration purposes only, and the description of individual stocks does not constitute investment advice of any form, nor does it represent the holdings information or trading moves of any fund managed by the fund manager. The fund manager assesses the risk level of this fund as R3-Medium Risk, suitable for Balanced (C3) and above investors. 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 solely responsible for any investment decisions they make independently. Furthermore, any views, analyses, and forecasts in this article do not constitute investment advice of any form to readers, nor shall any liability be assumed for direct or indirect losses arising from the use of the content in this article. Fund investment carries risks. 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. Investment in funds requires caution.
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