In early trading today (June 10), the three major A-share indices all dipped into negative territory. However, the IT innovation sector showed resilience against the broader market trend. Hygon Information Technology Co., Ltd. led the gains, rising over 7%, while Biwin Storage Technology Co.,Ltd. and Dawning Information Industry Co., Ltd. advanced more than 4%. The Huabao IT Innovation ETF (562030), which is heavily weighted in the software development industry, initially surged before paring gains. Its intraday increase reached as high as 2.27% and it is currently up 0.19%. During the session, it reclaimed its 5-day moving average and is attempting to secure a third consecutive daily gain.
Looking overseas, the multi-year framework agreement between NVIDIA and SK Hynix essentially locks in the most critical component for the next 2-3 generations of GPUs through long-term contracts and joint development. With leading production capacity pre-booked, the delivery timelines for second-tier GPU manufacturers and cloud companies developing their own chips are being systematically compressed.
Market analysts point out that amid the memory crunch, NVIDIA has effectively welded the development pace and production capacity curve of SK Hynix's future HBM generations onto its own AI infrastructure roadmap. HBM production is consuming a significant portion of DRAM fab capacity, squeezing out supply for standard DRAM and driving up its prices. For the A-share memory module sector, domestic independent brands like Biwin Storage Technology Co.,Ltd. and Longsys stand to benefit from revenue expansion during this DRAM price upcycle.
Focusing on the domestic market, on the evening of June 9, Biwin Storage Technology Co.,Ltd. announced it has signed a substantial routine procurement contract with a memory chip manufacturer. The company plans to purchase enterprise-grade flash memory particles over a 24-month period, with the total contract value reaching $1.8608 billion, approximately RMB 12.6 billion. The procurement cycle extends from the contract's effective date until June 30, 2028. This cooperation adopts a model that locks in both volume and price, which is expected to solidify the supply chain foundation for the company's medium to long-term production and operations.
Bank of Communications International notes that the market focus on AI infrastructure construction, which began in the first half of 2023, has now persisted for over three years. Evolving AI model technologies and increasingly clear monetization models are likely to sustain high investment enthusiasm in infrastructure from cloud providers and AI model developers for a considerable period. The industry and market have grown more confident in the sustainability of AI, suggesting that AI infrastructure, monetization, and algorithmic advancements may continue to dominate the technology sector narrative in the second half of 2026.
Regarding valuations, as of June 9, the price-to-earnings ratio (PE TTM) for the CSI IT Innovation Index, which the Huabao IT Innovation ETF (562030) tracks, stood at 95.24 times. This is below its historical median of 107.11 times, placing it at the 36.86th percentile over the past five years. This indicates relatively high valuation attractiveness and a substantial safety margin.
Focus on Self-Reliance and National Security
Considering the global landscape, geopolitical tensions and a trend towards deglobalization are intensifying, making the need for technological self-reliance increasingly urgent. From the perspectives of national security, information security, and industrial security, the IT innovation sector is receiving strong state support, and there is a clear necessity for accelerated corporate development within it.
The Huabao IT Innovation ETF (562030) and its feeder funds (Class A: 024050, Class C: 024051), which focus on the field of independent and controllable information technology, passively track the CSI IT Innovation Index. This index covers core segments of the IT innovation industry chain, including basic hardware, basic software, application software, information security, and peripheral equipment. It aggregates leading IT innovation companies, with a heavy weighting in the software development industry, and the index is characterized by high growth potential and significant market space. Investors optimistic about the prospects of the IT innovation sector may wish to pay close attention.
According to Shenwan industry classification standards, as of the end of May, the constituent stocks of the CSI IT Innovation Index (tracked by ETF 562030) were distributed across key sectors: Software Development (46.2%), Semiconductors (28.5%), IT Services II (13.3%), and Computer Equipment (12.0%). Together, these form the critical pillars of the IT innovation industry.
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