On April 17th, chip sector stocks on the STAR Market demonstrated strong activity. The Huabao Shanghai Sci-Tech Innovation Board Chip ETF (589190), which provides comprehensive exposure to the chip industry, saw its intraday price rise by up to 1.65%, closing 0.82% higher. Since hitting a recent low on March 24th, the chip sector has entered a recovery phase. By the close on April 17th, the Shanghai Stock Exchange Science and Technology Innovation Board Chip Index had accumulated a gain of 17.95% over this period, showing strong upward momentum.
In market movements, optical chip stocks surged powerfully, driven by robust global demand and high supply chain sentiment. Yuanjie Semiconductor Technology Co.,Ltd. and Shijia Photon jointly approached all-time highs. Yuanjie Semiconductor closed at 1,445 yuan per share, surpassing Kweichow Moutai's closing price of 1,407.24 yuan to become the new highest-priced stock in the A-share market. Additionally, Hygon Information Technology Co.,Ltd. rose nearly 3%, while Cambricon Technologies Corporation Limited gained over 2%, both achieving their tenth consecutive day of increases.
Driven by the AI wave, the chip industry is experiencing a super cycle of high prosperity. On one hand, a wave of price increases, led by memory chips, continues to spread. According to data from TrendForce, contract prices for standard DRAM in the first quarter of 2026 are projected to rise significantly, revised up to 90%-95%; NAND Flash contract price increases have also been adjusted upward to 55%-60%. Entering the second quarter, the upward price trend persists: DRAM contract prices are expected to increase by another 58%-63% sequentially, while NAND Flash price hikes are projected to widen to 70%-75%. Rising memory chip prices are also driving recent密集 price increases in other key segments like wafer fabrication, analog chips, and CPUs.
On the other hand, domestic substitution is accelerating against the backdrop of a computing power shortage. Soaring Token usage has led to an explosive surge in demand for computing power. Meanwhile, supply-side growth is constrained by various hard limits, resulting in limited short-term marginal increases. Severe computing power shortages are now evident both domestically and internationally. CITIC Securities anticipates that the domestic computing power crunch triggered by the AI application boom will accelerate the volume shipment of domestic GPUs, with a more direct impact on inference chips. While the performance of domestic single chips is rapidly catching up, it still lags behind Nvidia by 1-2 generations. The outlook is positive for domestic AI chips, particularly inference chips, to seize explosive growth opportunities amidst the domestic computing power shortage. It is estimated that the localization rate in the domestic AI chip market is currently around 30-40%, with potential to reach 60-70% by 2030.
To position for the chip industry's 'super cycle,' high-beta stocks listed on China's registration-based market, where price limits are 20%, are preferred. Public information indicates that the Huabao Shanghai Sci-Tech Innovation Board Chip ETF (589190) and its feeder fund track the Shanghai Stock Exchange Science and Technology Innovation Board Chip Index. While providing balanced allocation and full-chain exposure to the chip industry, the ETF maintains a weighting of over 90% in core areas like integrated circuits and semiconductor equipment, reflecting high hard-tech content and strong technical barriers.
Data shows that as of the end of 2025, the Shanghai Stock Exchange Science and Technology Innovation Board Chip Index had an annualized return of 17.93% since its base date, significantly outperforming peers like the STAR Market ChiNext Semiconductor Index, the China Securities Chip Index, and the CSI All Share Semiconductor Index, while also exhibiting a smaller maximum drawdown and a better risk-return profile.
Note: The annual performance of the Shanghai Stock Exchange Science and Technology Innovation Board Chip Index for the past five full years is as follows: 2021: +6.87%, 2022: -33.69%, 2023: +7.26%, 2024: +34.52%, 2025: +61.33%. The index's constituent stocks are adjusted according to its compilation rules, and its past performance does not guarantee future results. Data source: Shanghai and Shenzhen Stock Exchanges, etc. Institutional view source: CITIC Securities report dated April 16, 2026, titled "Soaring Token Usage Causes Computing Power Crunch; Domestic Computing Power Accelerates Breakthrough in Inference Segment." ETF fee information: When subscribing for or redeeming fund units, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions. Feeder fund fee information: The front-end subscription fee for the Huabao SSE Sci-Tech Innovation Board Chip ETF Feeder Fund A is 1,000 RMB per subscription for amounts of 2 million RMB or more; 0.2% for amounts between 1 million RMB (inclusive) and 2 million RMB; and 0.5% for amounts below 1 million RMB. The redemption fee is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days or more. The Huabao SSE Sci-Tech Innovation Board Chip ETF Feeder Fund C does not charge a subscription fee. The redemption fee is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days or more. A sales service fee of 0.2% applies. Risk提示: The Huabao Sci-Tech Innovation Board Chip ETF passively tracks the Shanghai Stock Exchange Science and Technology Innovation Board Chip Index. The index's base date is December 31, 2019, and its release date is June 13, 2022. This product is issued and managed by Huabao Fund. Selling agents do not assume responsibility for the product's investment, payment, or risk management. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Summary," and other legal fund documents to understand the fund's risk-return characteristics and choose a product suitable for their own risk tolerance. The fund manager assesses this fund's risk rating as R4 - Medium-High Risk, suitable for investors with a suitability rating of C4 or above. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Past performance of the fund does not predict its future results. Funds carry risks, and investment requires caution. Selling institutions assess this fund's risk based on relevant laws and regulations. Investors should pay attention to the suitability opinions provided by the fund manager in a timely manner. Suitability opinions may differ among selling institutions, and a selling institution's risk assessment of a fund product cannot be lower than the risk assessment result provided by the fund manager. The description of risk-return characteristics in the fund contract and the fund's risk rating may differ due to different consideration factors. Investors should understand the fund's risk-return situation and make careful choices based on their investment objectives, horizon, experience, and risk tolerance, bearing the risks themselves. The CSRC's registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks, and investment requires caution.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
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