On March 17, A-shares continued to fluctuate, with the three major indices closing lower collectively. The Shanghai Composite Index fell 0.85% to 4049.91 points, marking its fourth consecutive daily decline. The Shenzhen Component Index dropped 1.87%, while the ChiNext Index declined 2.29%. Market turnover reached 2.22 trillion yuan, shrinking for the fourth consecutive day, with over 4,500 stocks across the market ending in negative territory.
In sector performance, technology stocks declined across the board, with optical module and CPO stocks bearing the brunt of the sell-off. The ChiNext Artificial Intelligence ETF (159363) fell sharply by 4.34%, recording its largest single-day drop in nearly four months, while attracting 50 million units of inflow on the dip. Analysis indicates that NVIDIA's next-generation chip is slated for a 2028 release, implying a lengthy implementation cycle with limited near-term earnings support, potentially unsettling market sentiment. However, the long-term growth trajectory for the industry remains intact.
Influenced by fluctuations in commodity prices and the pace of infrastructure investment, cyclical sectors experienced heightened volatility. The Chemical ETF (516020) and the Huabao Nonferrous Metals ETF (159876) both extended their declines, recording their fourth and fifth consecutive daily losses, respectively.
The market anticipates the arrival of "Ant Securities," with the long-absent financial sector leading gains. The top-tier Brokerage ETF (512000), with assets of 37.8 billion, surged up to 3% in early trading, while the billion-dollar Bank ETF (512800) advanced for a sixth straight session against the market trend. On the evening of March 16, Yaocai Securities Financial announced that the tender offer initiated by Ant Group had received approval from relevant authorities and is expected to be completed on March 30.
In Hong Kong markets, the narrative of Middle Eastern capital returning to Hong Kong cooled, leading to a retreat from earlier highs. The Hang Seng Index closed up 0.13%, after having risen as much as 1.6% earlier. The Hang Seng Tech Index fell 0.08%, having gained up to 2.36% in the morning session. Chip stocks, which led gains yesterday, reversed course. The sole Hong Kong Information Technology ETF (159131) fell 1.17%. Technology giants diverged in the afternoon session, with the Hong Kong Internet ETF (513770), a core AI asset, briefly reclaiming its 20-day moving average before giving up the gain.
The healthcare sector also experienced volatility. The Huabao Hong Kong Stock Connect Healthcare ETF (159137), representing core medical assets, rose as much as 3.38% in early trading before closing with a modest gain of 0.44%, securing a consecutive positive close. The Hong Kong Stock Connect Innovative Drug ETF (520880), which focuses entirely on innovative drug R&D, closed flat on heavy volume. Analysis suggests the Hong Kong healthcare sector has undergone substantial adjustment. With positive trends in multiple medical fields and a solid underlying logic for the innovative drug segment, opportunities in this bottoming area warrant attention.
**ETF Market Review: Focus on A-share Banks, ChiNext AI, and Hong Kong Healthcare** 1. **Defying the Trend for 6 Days! Huabao Fund's Billion-Dollar Bank ETF Rises Nearly 1% Again** The banking sector maintained its strength, with the leading Bank ETF (512800) rising nearly 1% to achieve its sixth consecutive gain. Most bank stocks advanced, with China CITIC Bank gaining over 3%, Industrial and Commercial Bank of China and Bank of China rising nearly 2%, and Bank of Nanjing, Agricultural Bank of China, and Postal Savings Bank of China all increasing over 1%.
The sector's recent persistent outperformance has attracted capital inflows. Data from the Shanghai Stock Exchange shows the Bank ETF (512800) recorded net inflows of 196 million yuan over the past two days.
The ETF's portfolio manager, Feng Chencheng, noted that the banking sector's adjustment appears sufficient. From perspectives of fundamental certainty and stability, dividend value, and defensive characteristics, multiple positive catalysts are present for the sector. Regarding market style, the prolonged Iran conflict exceeding expectations has dampened risk appetite, driving capital towards more certain investments, where risk-resistant assets are relatively preferable. Dividend assets like banks, currently in an earnings recovery phase, represent sound allocation demand. Fundamentally, the year-on-year revenue growth for banks in 2025 is significantly better than in 2023 and 2024, with preliminary results from several companies exceeding expectations. As pressure on revenue growth eases for most banks, the inflection point for bank income appears more certain. Bank sector performance in 2026 is expected to be stable with a positive trend, showing improvement compared to the past two years. From a liquidity perspective, the desire for减持 through broad-based ETFs has weakened from Q3 2025 to January this year, reducing liquidity pressure on the banking sector. Spontaneous recovery forces are expected, supported by a reversal logic in trading style, offering a certain margin of safety at current levels. The Bank ETF (512800) and its feeder funds track the CSI Bank Index, comprising 42 A-share listed banks, serving as an efficient tool for tracking the overall banking sector. The ETF's latest AUM exceeds 11 billion yuan, with an average daily turnover surpassing 800 million yuan in 2025, making it the largest and most liquid among the 10 banking sector ETFs in the A-share market.
2. **Tianfu Communication Plunges Over 10%, Computing Power Sector Unexpectedly Slumps** The computing power sector experienced an unexpected significant decline, with optical module and CPO stocks suddenly correcting. Guangsheng Technology, Changxin Bochuang, and Tianfu Communication led the drop, falling over 10% each. Taichen Guang, Zhishang Technology, Ruijie Networks, Liante Technology, and Xinyisheng also declined over 5%.
Among popular ETFs, the ChiNext Artificial Intelligence ETF (159363), heavily weighted in optical module leaders, weakened steadily in the afternoon, with its price falling 4.34%—its largest single-day drop in nearly four months—breaching the 60-day moving average. Daily turnover reached 574 million yuan, attracting 50 million units of inflow on the dip.
NVIDIA's GTC conference announced multiple technological breakthroughs, yet the A-share computing power and optical module sectors fell unexpectedly, drawing market attention. Analysis points out that NVIDIA's new rack design potentially utilizing both optical and copper interconnects has led to a systematic revision of market expectations regarding AI interconnection routes. The 2028 timeline for NVIDIA's next-generation chip implies a long implementation cycle with limited near-term earnings support, impacting sentiment. From a medium-to-long-term perspective, today's decline is likely a short-term adjustment driven by sentiment and capital flow timing; the long-term growth logic for the industry remains unchanged. Huaxi Securities stated that while persistent external geopolitical risks and reduced risk appetite may affect short-term market volatility, AI remains a key investment theme. The current AI development phase is still in an accelerated scale-up period. As the supply chain for related computing chips diversifies, demand for tokens from application development is accelerating, indicating that underlying computing infrastructure like optical modules remains in an expansion phase.
To capture opportunities from AI developments, the ChiNext Artificial Intelligence ETF (159363) and its feeder funds offer a one-click allocation to "computing power + AI applications," directly benefiting from the growth红利 of AI commercialization. The ETF allocates approximately 60% to computing power and 40% to AI applications, representing not just a core "computing power" play but also a genuine "AI application" investment.
3. **Giving Up Gains! CXO and Internet Healthcare Sectors Provide Support** The Hong Kong market retreated after early gains, with the healthcare sector not spared. The Huabao Hong Kong Stock Connect Healthcare ETF (159137) rose as much as 3.38% early on before closing up 0.44%, achieving a consecutive positive close. Weighted CXO and internet healthcare stocks supported the index, with Genscript Biotech rising 3.74%, WuXi AppTec affiliates closing higher, JD Health and Ali Health ending in positive territory, and Ping An Good Doctor gaining 2.77%.
Analysis indicates multiple investment opportunities exist in the healthcare sector. The CXO industry is experiencing rising景气度 and valuation repair potential driven by recovering overseas orders and domestic capacity rationalization. The medical device sector benefits from domestic equipment renewal policies and overseas market expansion, with catalysts emerging in areas like brain-computer interfaces and AI imaging. Internet healthcare platforms are seeing optimized operational efficiency and clearer profit growth trajectories amid deepening medical insurance payment reforms.
Innovative drug stocks showed mixed performance. The Hong Kong Stock Connect Innovative Drug ETF (520880), focused solely on innovative drug R&D, rose up to 3% early before closing flat on highly active trading, with turnover reaching 515 million yuan. Innovative drug leaders diverged, with 3SBio leading gains throughout the day, rising over 8% at its peak, after its ActRIIA/ActRIIB bispecific antibody SSS67 received FDA approval for clinical trials. BeiGene and Sino Biopharmaceutical closed lower. From an industry perspective, domestic innovative drugs recently presented strong clinical data at academic conferences. Huayuan Pharmaceutical team highlighted that 2026 will bring further data validation for IO2.0, strengthening the investment opportunity in IO iteration, reaffirming a firm belief in the innovative drug segment's logic and recommending attention to opportunities in the bottoming area.
From a timing perspective, the Hong Kong healthcare sector has been adjusting since last September, now reaching a阶段性低位 with attractive valuations among leading stocks. To position for a rebound, consider these two T+0 instruments: For healthcare exposure, the Huabao Hong Kong Stock Connect Healthcare ETF (159137) allocates about 70% to CXO and AI healthcare, also covering innovative drugs and medical devices. Its top holdings include稀缺 internet healthcare leaders like JD Health and Ali Health. For innovative drug exposure, the Hong Kong Stock Connect Innovative Drug ETF (520880) invests 100% in innovative drug R&D companies, with its top ten holdings accounting for over 70%, highlighting its focus on sector leaders.
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