Markets retreated after an early surge today (May 21st), with the three major A-share indices all falling over 2%. The Dual-Listed Innovation 50 ETF (Ticker: 588330), a broad-based ETF tracking 50 leading growth stocks from the ChiNext and STAR markets, saw its intraday price rise nearly 2.5% in the morning session, refreshing its post-listing high since May 14th to set a new historical record. It subsequently consolidated and pulled back with the broader market, ultimately closing down 2.55%. The ETF's daily turnover exceeded 1 billion yuan, a 32% increase from the previous day.
Heavy volume accompanying a breakout to new highs can often signal a buying opportunity. In fact, the Dual-Listed Innovation 50 ETF (588330) has frequently traded at a premium recently, with a notably high premium persisting into the late session. It closed with a premium rate of 0.53%, indicating stronger buying pressure. The increased turnover suggests potential funds entering the market on dips.
Among its constituents, leading medical device company United Imaging Healthcare led gains with a 10% rise against the market trend, while Mindray Medical gained over 2%. Semiconductor leader Montage Technology rose more than 1%, ranking among the top gainers. On the other hand, semiconductor leaders Nexchip Semiconductor and China Resources Microelectronics fell 9.1% and 8.86% respectively. Leading photovoltaic equipment maker Jingcheng Electromechanical dropped over 7%. These declines weighed on the index's performance.
Market sentiment was influenced by volatility in NVIDIA, the global AI leader, which can affect risk appetite in A-share tech sectors. NVIDIA reported its latest quarterly earnings after the U.S. market closed on Wednesday. Despite impressive financial results and guidance that exceeded Wall Street expectations, its stock initially fell over 3% in after-hours trading before paring losses to around 1.2%. A key reason is that market expectations were already elevated ahead of the report. Investors focused on whether the growth magnitude was sufficiently "above expectations" to justify the stock's high valuation and significant prior gains.
Industry insiders caution investors against overreacting to NVIDIA's initial after-hours price movement. While companies like Amazon.com and Alphabet are ramping up their own AI infrastructure investments, NVIDIA's GPUs continue to demonstrate superior long-term value retention compared to competitors' offerings. NVIDIA's performance indicates the AI spending cycle remains in its early stages, despite already rapid growth.
Looking ahead, GF Securities believes technology is highly likely to remain a high-growth direction. The positive industry trend for tech has not been invalidated; the trend component is more significant than short-term fluctuations. Within a healthy long-term moving average range, positive expectations can persist even three months after sentiment becomes overheated. Furthermore, with the semi-annual report window approaching in about two months (A-share companies typically disclose earnings previews before mid-July, while U.S. companies begin reporting formal results around mid-July), the market enters an effective phase for earnings-based pricing. Technology is again highly likely to be a high-growth focus.
Data shows the Dual-Listed Innovation 50 ETF (588330), covering 50 high-growth leaders from ChiNext and STAR markets, is fully positioned in the new quality productive forces theme. Its underlying index (the SSE STAR Market and ChiNext 50 Index) has surged 129.08% over the past year, significantly outperforming major indices like the ChiNext 50 (108.14%) and the STAR 50 (84.08%), leading among broad-based hard tech indices.
Data period: May 20, 2025 - May 20, 2026. The SSE STAR Market and ChiNext 50 Index annual returns from 2021 to 2025 were: 0.37%, -28.32%, -18.83%, 13.63%, 60.86%. Index constituents are adjusted according to its compilation rules; its back-tested historical performance does not indicate future results.
[Look Beyond Sector Rotation, Access China's Core Technology in One Click] The hard tech broad-based ETF—Dual-Listed Innovation 50 ETF (588330) and its off-exchange feeder funds (Class A: 013317 / Class C: 013318)—tracks an index that selects the 50 largest listed companies in strategic emerging industries from the STAR and ChiNext boards. It encompasses hot themes like optical modules, semiconductors, and photovoltaic equipment. With a 20% daily price limit, it may facilitate faster rebounds. Additionally, this ETF is eligible for margin trading and is included in Stock Connect programs, making it an efficient tool for one-click exposure to the new quality productive forces theme.
*Institutional view reference: GF Securities report "This is a Contest Between the Speed of EPS Upgrades and Interest Rate Hikes" published May 17.
Risk Disclosure: The Dual-Listed Innovation 50 ETF passively tracks the CSI STAR Market and ChiNext 50 Index. The index base date is December 31, 2019, and its official release date was June 1, 2021. Index constituents are adjusted according to its compilation rules; its back-tested historical performance does not indicate future results. Constituent stocks mentioned are for illustrative purposes only. Descriptions of individual stocks are not investment advice of any form and do not represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses the risk level of this ETF as R4 (Medium-High Risk), suitable for Aggressive (C4) and above investors. Suitability matching opinions are subject to sales institutions. Any information appearing herein (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, any form of表述, etc.) is for reference only. Investors are responsible for their own investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice to readers, and no responsibility is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past performance of a fund does not indicate its future results. The performance of other funds managed by the manager does not guarantee the performance of this fund. Invest with caution.
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