A sharp shift in market momentum occurred on August 4th, with the A-share chip and semiconductor sector once again surging. As of this writing, the low-cost HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) saw its intraday price surge 6%, recovering its 250-day moving average.
Sector-wide stock strength was evident, with leaders including Shijia Photonics, Yuanjie Technology, and VeriSilicon Holdings posting double-digit gains. Juchuan Technology, Yandong Microelectronics rose over 9%, while Jiehua Technology and Huahong Hongli were among the top performers. The market is benefiting from multiple positive catalysts. Overnight, signals of a renewed de-escalation in US-Iran tensions boosted market sentiment. Additionally, major North American cloud providers have raised their 2026 capital expenditure guidance, driving the AI investment theme into a phase focused on fundamentals, specifically "order numbers and earnings performance."
The combination of overseas market influence and domestic earnings delivery has reignited the A-share hard-tech rally. Analysts suggest that as long as the global AI capital expenditure logic remains intact, AI computing power, the most industry-trend-supported super-theme for 2026, is worth continuous tracking. Key areas to focus on include core hardware segments like AI chips and advanced packaging.
According to Guolian Minsheng Securities, the core opportunities in domestic computing power can be summarized as "three arrows": AI chips, domestic wafer manufacturing, and domestic supernodes. The simultaneous resonance across these three major areas indicates that China's semiconductor industry has entered a "super cycle" of complete chain prosperity. Independent and controllable development has fully transformed from a mere industry concept into tangible earnings growth. Short-term market fluctuations should not be a major concern, while the long-term investment value of the domestic semiconductor industry remains a strong conviction.
*Positioning for the chip industry's "super cycle," the preferred choice is the 20CM high-elasticity variety! Public information shows that the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) and its linked funds (Class A: 021224, Class C: 021225) passively track the Shanghai Sci-Tech Innovation Board Chip Index. While providing balanced allocation and full-chain coverage of the chip industry, its core exposure to areas like integrated circuits and semiconductor equipment accounts for over 90% of the weight, offering high hard-tech content and strong offensive characteristics.
*Public data indicates that the annual management fee for the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) is 0.3%, and the custody fee is 0.08%, resulting in a total expense ratio of 0.38%, which is relatively low among ETFs tracking the same underlying index.
Data source: Shanghai and Shenzhen stock exchanges, etc. Institutional viewpoint source: Guolian Minsheng Securities, dated July 22, 2026, "Semiconductor Industry Super Cycle Series - Three Arrows of Domestic Computing Power: Chips, FABs, Supernodes."
ETF expense-related note: When subscribing or redeeming fund shares, the subscription/redemption agent may charge a commission of up to 0.5% of the amount, which includes fees charged by the stock exchange, registration institution, etc.
Linked fund expense-related note: For the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND Class A shares, the subscription fee (front-end) is 1,000 RMB per transaction for subscriptions of 2 million RMB or more, 0.2% for subscriptions between 1 million (inclusive) and 2 million RMB, and 0.5% for subscriptions under 1 million RMB. The redemption fee is 1.5% for holdings less than 7 days and 0% for holdings of 7 days or more. The Class C shares do not have a subscription fee, have a redemption fee of 1.5% for holdings less than 7 days and 0% for holdings of 7 days or more, and a distribution fee of 0.2%.
Risk Warning: The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) and its linked funds passively track the Shanghai Sci-Tech Innovation Board Chip Index, which was established on December 31, 2019, and officially launched on June 13, 2022. The annual returns of the Shanghai Sci-Tech Innovation Board Chip Index over the past five completed years are: 2021: +6.87%, 2022: -33.69%, 2023: +7.26%, 2024: +34.52%, 2025: +61.33%. The annual volatility of the Shanghai Sci-Tech Innovation Board Chip Index over the past five completed years is: 2021: 34.32%, 2022: 36.60%, 2023: 28.64%, 2024: 44.67%, 2025: 34.34%. The composition of the index constituent stocks is adjusted according to the index compilation rules. Its back-tested historical performance does not indicate future performance of the index. This product is issued and managed by Huabao Fund, and the distribution agent does not bear the risk of investment, payment, or risk management. Investors should carefully read the fund's legal documents, such as the "Fund Contract," "Prospectus," and "Fund Product Information Summary," to understand the fund's risk-return characteristics and select a product suitable for their own risk tolerance. The fund's risk rating assessed by the fund manager is 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 constitute a guarantee of this fund's performance. Past fund performance is not indicative of future returns. Fund investment involves risk, and caution is required!
Distribution institutions (including the fund manager's direct sales and other distribution institutions) will conduct a risk assessment of this fund based on relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. The suitability opinions of different distribution institutions may not be consistent. The risk rating result for the fund product issued by a fund distribution institution shall not be lower than the risk rating result made by the fund manager. The fund's risk-return characteristics and risk rating in the fund contract may differ due to different consideration factors. Investors should understand the fund's risk-return profile, carefully select fund products based on their own investment objectives, term, investment experience, and risk tolerance, and bear the risk themselves. The registration of this fund by the China Securities Regulatory Commission does not imply a substantive judgment or guarantee of the fund's investment value, market prospects, or returns. Fund investment involves risk, and caution is required! A MACD golden cross signal has formed. These stocks are showing strong upward momentum!
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