On October 28, AI hardware staged a rebound, with the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190), which has relatively low fees among similar products, opening higher and climbing further, its underlying index rising nearly 4% at one point before easing to a gain of nearly 2%. 3peak Incorporated (688536) led the advance with a double-digit jump after reporting results, as its net profit attributable to shareholders for the first three quarters surged 384.33% year on year, while Shijia Photons, Montage Technology, and Biwin Storage ranked among the top gainers.
On one hand, strong overseas signals provided a boost, as the Philadelphia Semiconductor Index closed up 3.6% overnight, with all constituent stocks rising across the board for a second consecutive day. AI-related financing activity continued unabated, with Meta raising the total size of its equity financing from $95 billion to $97.5 billion, of which a $25 billion common stock offering drew roughly five times oversubscription, signaling that investor enthusiasm for AI investment remains undiminished.
On the other hand, industry prosperity was confirmed, as SK hynix reported quarterly revenue exceeding 100 trillion won for the first time in its history. SK hynix analyzed that in multiple fields including software development, customer service, and search, AI-driven improvements in production efficiency and new revenue growth are driving continuous increases in AI usage, which in turn expands infrastructure investment, establishing a virtuous cycle. The supply side has failed to keep pace with market growth. As advanced process technologies become increasingly difficult and new production facilities take a long time to build, the supply-demand imbalance is expected to persist until 2030.
As of now, domestic chip valuations have fallen significantly, with the STAR Chip Index's price-to-earnings ratio (TTM) at 107.17 times, sitting at a relatively low 34.08 percentile over the past five years. Hualong Securities noted that leading companies such as Hygon Information have issued strong earnings forecasts for the first three quarters of 2026, confirming the prosperity of the computing power industry, and with domestic substitution accelerating alongside favorable "AI Plus" policies, the brokerage is bullish on investment opportunities in the AI computing power mainline and recommends focusing on chip and server leaders with independent computing power supply capabilities.
Industrial Securities believes that the computing power industry chain and self-controllable directions remain highly prosperous, with the pace of order fulfillment, capital expenditure, and profit realization staying stable. Against the backdrop of continued high prosperity in core industries, if the index fails to deliver positive returns for the full year, that would not conform to the rules of fundamental pricing, as earnings growth itself constitutes the intrinsic driver of valuation repair.
For investors, selecting among chip subsectors is difficult, so a one-click allocation through an index covering the entire chip industry chain may be preferable. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) passively tracks the Shanghai Stock Exchange STAR Market Chip Index, covering the entire chip industry chain and holding heavy positions in core segments such as AI chips, storage, and semiconductor equipment and materials, allowing it to effectively reflect the industry development trends driven by the continuous upgrading of AI computing power infrastructure, with strong offensive characteristics and 20CM high elasticity. Off-market investors can consider the feeder fund 021225.
Public data shows that the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) has a management fee of 0.3%, a custody fee of 0.08%, and a combined fee of 0.38%, which is relatively low among ETFs tracking the same index.
Data source: Shanghai and Shenzhen stock exchanges, Wind, etc. Institutional views source: Hualong Securities report dated 26/10/21 titled "Hygon Information (688041.SH) 2026 Third Quarter Earnings Review Report: Revenue Up 58% Year on Year, Domestic Computing Power Leader Accelerates Fulfillment"; Industrial Securities report dated 26/10/23 titled "Five Chief Analysts: Valuations Have a 'Cushion,' Long-Term Capital Is Accelerating Entry." ETF fee-related notes: When investors subscribe to or redeem fund shares, subscription and redemption agencies may charge a commission of no more than 0.5%, which includes fees charged by stock exchanges and registration institutions. Feeder fund fee-related notes: HUABAO Shanghai STAR Market Chip ETF Feeder A has a subscription fee (front-end) of 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.2% for 1 million yuan (inclusive) to 2 million yuan, and 0.5% for amounts below 1 million yuan; the redemption fee is 1.5% for holding periods of fewer than 7 days and 0% for holding periods of 7 days (inclusive) or more. HUABAO Shanghai STAR Market Chip ETF Feeder C charges no subscription fee, with a redemption fee of 1.5% for holding periods of fewer than 7 days and 0% for holding periods of 7 days (inclusive) or more; the sales service fee is 0.2%.
Risk disclosure: The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) and its feeder funds passively track the Shanghai Stock Exchange STAR Market Chip Index, whose base date is December 31, 2019, and launch date is June 13, 2022. The Shanghai Stock Exchange STAR Market Chip Index's returns over the past five complete years were 6.87% in 2021, -33.69% in 2022, 7.26% in 2023, 34.52% in 2024, and 61.33% in 2025. The Shanghai Stock Exchange STAR Market Chip Index's volatility over the past five complete years was 34.32% in 2021, 36.60% in 2022, 28.64% in 2023, 44.67% in 2024, and 34.34% in 2025. The index's constituent stocks are adjusted in a timely manner according to the index compilation rules, and its back-tested historical performance does not predict future index performance. This product is issued and managed by Huabao Fund, and distribution agencies do not bear responsibility for investment, redemption, or risk management of the product. Investors should carefully read fund legal documents such as the Fund Contract, Prospectus, and Fund Product Information Summary to understand the fund's risk and return characteristics and select products suitable for their own risk tolerance. The fund manager assesses this fund's risk rating as R4-medium-high risk, suitable for investors with suitability ratings of C4 and above. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Past performance of a fund does not predict its future performance. Funds involve risks, and investment requires caution! Distribution agencies (including the fund manager's direct sales channel and other distribution agencies) conduct risk assessments of this fund in accordance with relevant laws and regulations, and investors should promptly pay attention to the suitability opinions issued by the fund manager, as suitability opinions among distribution agencies may not necessarily be consistent, and the fund product risk rating results issued by fund distribution agencies must not be lower than the risk rating results made by the fund manager. Differences exist between the fund contract's description of fund risk and return characteristics and the fund risk rating due to different factors considered. Investors should understand the fund's risk and return situation, carefully select fund products in light of their own investment objectives, time horizon, investment experience, and risk tolerance, and bear risks themselves. The registration of this fund by the China Securities Regulatory Commission does not indicate that it makes any substantive judgment or guarantee regarding the fund's investment value, market prospects, or returns. Funds involve risks, and investment requires caution. MACD golden cross signals have formed, and these stocks are performing well!
Comments