The market consolidated today (October 12), with all three major A-share indices pulling back. The ChiNext Index led the decline, falling 2.61%. The underlying index of the Electronics ETF Huabao (515260), which gathers core leaders in the electronics sector, retreated in line with the market, closing down 2.92%. It has now fallen back to its April level, making its valuation appeal increasingly prominent.
Among constituent stocks, EDA software leader Huada Jiutian led gains, rising over 6%. Semiconductor equipment leader Tuojing Technology and PCB leader Pengding Holdings rose more than 2%. Consumer electronics leaders Anker Innovations and Transsion Holdings bucked the trend and followed higher. On the other hand, Foxconn Industrial Internet Co.,Ltd. (601138) dropped more than 7%, while Luxshare Precision Industry Co.,Ltd. (002475) fell more than 2%, drawing market attention.
On the news front, in response to allegations by US high-performance modular power supply company Vicor, the US International Trade Commission (ITC) officially launched a Section 337 investigation on October 9 local time. The probe mainly targets vertical power delivery systems, related components, and computing systems incorporating such products. There are 20 defendants, including Luxshare Precision, Foxconn Industrial Internet, MPS, and Foxconn. In response, Foxconn Industrial Internet and Luxshare Precision actively responded to the US Section 337 investigation, stating that the products involved are still in the internal evaluation or customer verification stage and have not yet entered mass production. The investigation at this stage will not have a material adverse impact on production, operations, or performance.
Vertical power delivery technology is a new chip-level power supply solution applied to AI chips, designed to provide more efficient and stable power for high-performance processors. This technology places power modules directly beneath the processor package, delivering power vertically through the PCB or substrate. It shortens the power delivery path from centimeters to millimeters, significantly reducing power delivery network impedance, cutting losses, improving transient response speed, and freeing up routing space around the chip. Its most core application scenario is power supply for AI computing chips such as GPUs and LPUs.
After sudden events occur, the market often goes through a process from concern and wait-and-see to reassessment. A company's competitive advantages stem from long-term accumulated customer resources, technical capabilities, manufacturing efficiency, and a global delivery system, and will not disappear because of a patent investigation. Moreover, this is not the first time Luxshare Precision has encountered a US Section 337 investigation. In 2020, Amphenol filed allegations related to electrical connectors. In 2022, the ITC terminated the investigation, with only some previous-generation products involved, and multiple patent allegations were not accepted. Luxshare Precision stated that the related matters did not have a substantive impact on production and operations.
The US Section 337 investigation is conducted by the ITC under Section 337 of the US Tariff Act of 1930 against intellectual property infringement and other unfair competition practices in import trade. It generally goes through stages including case initiation, evidence discovery, hearings, initial determination by an administrative law judge, ITC review, ITC final determination, and presidential review. The cycle is long, and the final outcome depends on whether a complete chain of infringement evidence can be obtained. Currently, this Section 337 investigation is still at the case initiation stage.
Focusing on domestic policy, a top-level document on developing new quality productive forces was released. The State Council and other departments issued the Opinions on Developing New Quality Productive Forces, proposing the full implementation of the "AI+" initiative. It also calls for accelerating applications in new-generation intelligent terminal scenarios such as intelligent connected new energy vehicles, AI phones and computers, and humanoid robots. In addition, the National Development and Reform Commission stated that the fourth quarter is the final quarter of the year and also a key window for consolidating the economic recovery. It will promote the early start of construction of major engineering projects specified in the 15th Five-Year Plan and the implementation plans for the "Six Networks" construction, and stimulate and release domestic demand potential.
Industry insiders pointed out that recent market volatility is not a sudden change in fundamentals, but the result of triple pressures from regulatory expectations, supply concerns, and crowded positioning. At present, the memory price increase cycle continues, and momentum in AI computing orders and optical interconnect technology upgrades has not stopped. Third-quarter earnings previews show high certainty of volume growth for leading optical communications and memory companies, with upstream energy raw materials and the TMT sector showing leading growth. Within technology hardware, attention should be paid to areas where third-quarter results can be verified and crowding has clearly fallen, including memory, optical modules, semiconductor equipment, and domestic computing power.
Price increases + AI + self-controllability may run through the electronics sector all year
The Electronics ETF Huabao (515260) and its feeder funds (Class A: 012550, Class C: 012551), which gather core leaders in the electronics sector, passively track the Electronics 50 Index. They focus on semiconductors, components, and consumer electronics industries, covering hot concepts such as PCB, memory chips, semiconductor equipment, advanced packaging, glass substrates, semiconductor silicon wafers, and MLCC, benefiting from AI computing power expansion and sector price increase trends. In addition, constituent stocks are deeply tied to global technology leaders and are part of the Apple, Nvidia, and Google supply chains.
Source: Shanghai and Shenzhen Stock Exchanges, etc., as of October 12, 2026. Note: Among the individual stocks mentioned in this article, the following are constituent stocks of the underlying index of Electronics ETF Huabao (515260). As of the end of September, their weights were: Huada Jiutian, 0.34%; Tuojing Technology, 2.34%; Pengding Holdings, 1.02%; Anker Innovations, 0.50%; Transsion Holdings, 0.57%; Foxconn Industrial Internet, 4.28%; Luxshare Precision, 4.67%. Index constituent stocks in this article are for display only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager.
ETF fee-related notes: ETFs do not charge sales service fees. Subscription and redemption agencies may charge commissions at a rate not exceeding 0.5%, which includes related fees charged by stock exchanges and registrars. On-exchange trading fees are subject to actual charges by securities companies. Feeder fund fee notes: For Huabao CSI Electronics 50 ETF Initiating Feeder Fund (Class A), the subscription fee is RMB 1,000 per transaction for subscription amounts of RMB 2 million (inclusive) or more, 0.6% for RMB 1 million (inclusive) to RMB 2 million, and 1% for less than RMB 1 million. The redemption fee 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 Electronics 50 ETF Initiating Feeder Fund (Class C) does not charge subscription fees. 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. The sales service fee is 0.2%.
Risk disclosure: Electronics ETF Huabao passively tracks the CSI Electronics 50 Index. The base date of the index is December 31, 2008, and it was released on July 22, 2009. The composition of index constituent stocks is adjusted in a timely manner according to the index compilation rules. Its back-tested historical performance does not predict the future performance of the index. The individual stocks and index constituent stocks mentioned in this article are for display only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager. The manager assesses the risk level of Electronics ETF Huabao as R3-medium risk, suitable for balanced investors (C3) and above. The appropriateness matching opinion should be based on the sales institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor do they bear any responsibility for direct or indirect losses caused by the use of the content of this article. Fund investment involves risks. Past performance of funds does not represent their future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Fund investment must be cautious. MACD golden cross signals have formed, and these stocks are performing well.
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