Market Review and Key Views: In the week after the holiday (10.8-10.9), the A-share market pulled back overall: the CSI 300 fell 0.93%, the CSI 500 fell 2.48%, the CSI 1000 fell 1.96%, the ChiNext 50 fell 2.85%, and the STAR 50 fell 4.75%. On the trading side, average daily turnover in the A-share market was about 1.73 trillion yuan, a sharp increase in activity compared with before the holiday. Around the double holiday, domestic technology sectors such as communications and electronics pulled back, while overseas technology sectors showed strong performance, with strong earnings growth from companies such as Micron and Samsung validating the continued high prosperity of the industry. Overall valuations in the technology sector have fallen sharply back into an attractive range. The ChiNext 50 Index currently has a PE valuation of 29.17 times, in the 13.46% percentile over the past ten years. Catalysts in the overseas computing power industry chain are密集, including the OCP conference and the third-quarter earnings window, and it is advisable to continue watching the ChiNext 50 Index, which is heavily weighted in core technology leaders such as AI computing power, optical communications, chips, and new energy batteries.
Hua'an ChiNext 50 ETF (159949): It brings together white-horse leaders in advantaged fields of the ChiNext board and focuses on leading companies with high-tech growth attributes. The index's ROE level has remained at a high range of 15% to 20% over the past six years, standing out compared with other mainstream broad-based indices, with net profit attributable to parent companies expected to grow as much as 22% in 2025 and 48% in 2026H1. (Data source: Wind, as of 2026-10-9) ChiNext 50 Index (399673.SZ) weighted industries: ChiNext provides a direct financing platform for growth-oriented innovative and entrepreneurial enterprises. In terms of weighted industries, the ChiNext 50 Index focuses on four major new-quality productivity tracks: information technology, new energy, fintech, and pharmaceuticals, with purely technology-growth attributes. Data for the four major tracks of the ChiNext 50 Index source: Wind, Hua'an Fund, as of 2026-10-9. ChiNext 50 Index: pursuing "light," recognizing "new," and digging deeper for "gold." In a horizontal comparison, the ChiNext 50 Index's optical module exposure, new energy battery exposure, and fintech exposure are superior to those of the ChiNext Index and mainstream broad-based indices.
ChiNext 50 Index (399673.SZ) weighted industry views: Communications. Last week, the overseas optical communications sector rose sharply, while the domestic communications sector came under overall pressure. The direct trigger for the sharp decline was a research report published by Morgan Stanley on October 1. The report outlined scenarios in which the U.S. FCC might impose restrictions on Chinese-made optical transceivers, including that restrictions would most likely begin with 3.2T products and that there could be an exemption path for products where 65% of BOM value comes from U.S. companies. We believe 3.2T restrictions are expected to ramp only in 2028, with limited negative impact on optical module component makers, while the impact on domestic optical chips may be more direct. This is not a formally implemented FCC regulation, and the report itself uses wording such as "potential" and "possible." In addition, indium phosphide substrates may tighten exports and constrain U.S. expansion. Another trigger may have been rumors of price cuts for 1.6T optical chips. The rumor said that the smooth ramp of silicon photonics solutions exposed the cost floor, shifting customers' purchasing mindset. We believe the panic may be greater than the substance.
In sharp contrast to the panic in the capital markets is the密集 catalysts in the industry: Hengtong Optic-Electric recently proposed a 6.636 billion yuan private placement plan, of which 3.148 billion yuan will be invested directly in optical communications, focusing on CPO packaging and AI optical interconnection, and it plans to add 63 million FAU units per year in production capacity. Overseas capacity is "sold out": Lumentum's CEO said on October 9 that due to surging demand from AI data centers, the company's related optical device capacity has been "completely sold out" through early 2029, and some products will still meet only about 30% of demand in 2027. The OCP conference is approaching: from October 12-15, the OCP Global Summit will be held in San Jose, focusing on core topics such as the upgrade to 1.6T optical interconnection and the evolution of NPO/CPO architectures, and it is seen as the next important catalytic window for the optical communications sector. In addition, the market has positive expectations for the third-quarter reports of the optical communications sector. Marvell raised its long-term growth guidance, with its fiscal 2028 revenue forecast increased from $18 billion to $20 billion, while TSMC's September revenue rose 54.6% year over year, both confirming the continued prosperity of AI computing power and high-speed interconnection. As the OCP conference approaches and third-quarter earnings continue to provide catalysts, the ChiNext 50 Index, which focuses on leading optical module makers, deserves continued attention. (The above individual stocks are examples only and not investment advice.)
New energy batteries. Last week, the new energy sector was broadly flat. The Ministry of Industry and Information Technology and six other departments jointly issued the "15th Five-Year Plan for the Development of the New Battery Industry," the first national-level special plan in China's battery sector. It clearly proposed that by 2030, all-solid-state batteries should initially achieve large-scale application and long-life lithium batteries should reach a cycle life of 15,000 cycles. At the same time, the Ministry of Finance and two other departments announced that starting September 1, 2026, solid-state batteries would be exempt from consumption tax. On the industry side, leading companies' pilot lines are密集 making breakthroughs. CATL has built a 1GWh all-solid-state pilot line, and its laboratory sample energy density has reached 500Wh/kg. In terms of industrial chain collaboration, Seres and CATL signed a long-term strategic cooperation deepening agreement to deepen cooperation around battery safety, ultra-fast charging and battery swapping, and global market expansion. In October, total scheduled lithium battery production across the market was about 345GWh, up 3.9% month over month, while scheduled production at six sample battery companies surged 57% year over year. Lithium carbonate prices continued to weaken, with the main futures contract falling below the 120,000 yuan/ton mark, while inventories continued to destock. (The above individual stocks are examples only and not investment advice.)
Electronics. Last week, the electronics sector fell sharply. The U.S. FCC announced on October 7 a plan to ban Chinese laboratories from testing and certifying electronic products supplied to the United States. Combined with Morgan Stanley's scenario analysis on CPO restrictions, the electronics industry index plunged 5.66% in a single week. But industry fundamentals are not pessimistic: the prosperity of the overseas computing power chain continues to be validated. Marvell raised its fiscal 2028 revenue guidance to about $20 billion and set a fiscal 2031 target of $70 billion to $90 billion. AMD's sixth-generation EPYC server CPU capacity for 2027 is fully sold out, and it has already taken orders for 2028. Micron's FY2026Q4 revenue was $54.23 billion, with a gross margin as high as 87%, comprehensively exceeding expectations. On the terminal side, laptops equipped with Nvidia RTX Spark have opened for pre-order, Apple confirmed the release of a new smart home hub product on October 13, Samsung Electro-Mechanics signed an approximately $210 million long-term contract for AI server MLCCs, and during the National Day holiday, Suning's AI home appliance sales rose more than 40% year over year. Domestically, the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued the "15th Five-Year Plan for the Development of the Electronic Information Manufacturing Industry," proposing that by 2030 operating revenue of enterprises above designated size should exceed 30 trillion yuan. Overall, the sector is under short-term emotional pressure from geopolitical policy, but the industry prosperity driven by AI computing power and the top-level "15th Five-Year Plan" provide medium-term support. Some institutions are also using ETFs to add to semiconductor and chip positions against the trend during the adjustment. (The above individual stocks are examples only and not investment advice.)
Hua'an ChiNext 50 ETF (Code: 159949) Overview: Hua'an ChiNext 50 ETF tracks the ChiNext 50 Index. The index selects 50 companies on the ChiNext market with relatively high visibility, liquidity, and market capitalization. It currently mainly covers leaders in five major advantaged technology tracks: communications, electronics, new energy batteries, internet finance, and biomedicine, with relatively high investment value. Hua'an ChiNext 50 ETF (Code: 159949) has ample liquidity, with average daily turnover of 1.920 billion yuan over the past year, ranking among the top ETFs on the Shenzhen Stock Exchange. The index fund's latest scale is 23.274 billion yuan, making it one of the larger funds on the market tracking ChiNext-related indices. Regarding ETF product subscription/redemption fee rates, when investors handle cash subscription or redemption, the sales institution may charge a certain fee/commission at a standard not exceeding 0.5%, which includes related fees charged by exchanges, registration and settlement institutions, and others.
Risk Disclosure: The above is only an objective introduction to the current constituent stock distribution of the underlying index. It does not constitute any investment advice and is not a guarantee of investment returns. The index company may subsequently adjust the index compilation plan, and the composition and weights of index constituents may change dynamically. Please pay attention to the risk of relatively large weights and high concentration in some index constituents. This fund is an equity fund, a fund type with relatively high risk and relatively high expected return. It mainly invests in constituent stocks and备选 constituent stocks of the underlying index, and its feeder fund mainly tracks the performance of the target ETF closely by investing in it. The fund's expected return and risk are higher than those of money market funds, bond funds, and hybrid funds, and it has risk-return characteristics similar to those of the underlying index. The fund management company does not guarantee that this fund will necessarily be profitable, nor does it guarantee minimum returns. Past performance of the fund does not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund product returns are subject to volatility risk. Investment requires caution. For details, please carefully read the fund contract, prospectus, and other fund legal documents. A MACD golden cross signal has formed, and these stocks are performing well.
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