On May 18, domestic chip stocks swiftly halted their decline and rebounded. The Sci-Tech Innovation Chip ETF Huabao (589190), which provides comprehensive exposure to the chip industry, opened lower but then surged, with its on-exchange price currently rising over 3%. Following a two-day pullback, funds actively sought bargains. Data from the Shanghai Stock Exchange shows that 589190 saw a net fund inflow of 49.47 million yuan over the past two days.
Most stocks in the sector advanced, with Biwin Storage Technology Co., Ltd. rising over 11%, Advanced Micro-Fabrication Equipment Inc. China gaining nearly 5%, Hygon Information Technology Co., Ltd., Cambricon Technologies Corporation Limited, and Montage Technology Co., Ltd. each climbing over 3%. SmartSens Technology Co., Ltd., FeiCheng Precision Components (Shenyang) Co., Ltd., Anji Microelectronics Technology (Shanghai) Co., Ltd., Nexchip Semiconductor Corporation, and others were among the top gainers.
Regarding the pullback in the latter half of last week, institutions generally believe that overseas inflation exceeding expectations has heightened expectations for monetary policy tightening, creating short-term pressure on global risk assets. However, trading activity in the A-share market remains robust, and the short-term adjustment is considered a healthy consolidation. Benefiting from the high growth of AI and the continuous realization of profits, subsequent funds are expected to further concentrate in the technology sector.
Guangfa Securities stated that the industrial trend in the technology sector has not yet been disproven. In two months, the A-share market will enter the semi-annual report window, a period where market pricing becomes more effective based on performance. Technology is highly likely to remain a high-growth direction.
Soochow Securities also believes that core technology stocks are still the direction with the strongest medium-term growth logic. In the market cycle from 2022 to 2024, US dollar liquidity was a core indicator for judging turning points. However, in recent years, the market has clearly entered a new stage where "macro factors give way to micro industrial development." Changes in industrial growth and fundamentals have become key variables determining market trends.
It is worth noting that in the market trends this year, Sci-Tech Innovation Chip has demonstrated strong upward momentum. The SSE STAR Market Chip Index has cumulatively risen 52.64% over the period, performing relatively well among similar semiconductor chip indices.
Note: The annual gains/losses for the SSE STAR Market Chip Index over the past five full years are: 2021: 6.87%, 2022: -33.69%, 2023: 7.26%, 2024: 34.52%, 2025: 61.33%. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its historical backtested performance does not predict future index performance.
To position for the chip industry's "super cycle," high-volatility 20CM stocks are a preferred choice! Public information shows that the Sci-Tech Innovation Chip ETF Huabao (589190) and its feeder fund (Class A 021224, Class C 021225) passively track the SSE STAR Market Chip Index. While providing balanced allocation and comprehensive exposure across the chip industry chain, they have a weight exceeding 90% in core areas such as integrated circuits and semiconductor equipment, featuring high hard-tech content and strong technological barriers.
Data source: Shanghai and Shenzhen Stock Exchanges, etc.
ETF fee-related notes: When investors subscribe for or redeem fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges, registration institutions, etc. Feeder fund fee-related notes: For Huabao SSE STAR Market Chip ETF Feeder Fund Class A, the subscription fee (front-end load) is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.2% for amounts between 1 million yuan (inclusive) and 2 million yuan, and 0.5% for amounts below 1 million yuan. The redemption fee rate is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days (inclusive) or more. Huabao SSE STAR Market Chip ETF Feeder Fund Class C does not charge a subscription fee. The redemption fee rate is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days (inclusive) or more. The sales service fee is 0.2%.
Risk Disclosure: The Sci-Tech Innovation Chip ETF Huabao passively tracks the SSE STAR Market Chip Index. The base date for this index is December 31, 2019, and its release date is June 13, 2022. This product is issued and managed by Huabao Fund. Distributors do not assume responsibility for the investment, redemption, or risk management of the product. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement, 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 to 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 the performance of this fund. Past fund performance does not predict its future performance. Funds carry risks, and investment requires caution. Distributors (including the fund manager's direct sales channels and other distributors) evaluate the risk of this fund according to relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions from different distributors may not necessarily be consistent. The fund product risk rating results issued by fund distributors shall not be lower than the risk rating results made by the fund manager. The description of the fund's risk-return characteristics in the fund contract and its risk rating may differ due to different considerations. Investors should understand the fund's risk-return profile and choose fund products cautiously based on their own investment objectives, investment horizon, investment experience, and risk tolerance, bearing the risks themselves. The China Securities Regulatory Commission'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, and these stocks are performing well!
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