On June 1, 2026, the ChiNext Index marks its 16th anniversary. Over these sixteen years, starting from a base of 1000 points, the index has navigated multiple bull and bear cycles, keeping pace with the drumbeat of innovation, and has become a microcosm of China's economic transformation from old to new growth drivers.
Just before this milestone, on May 29, 2026, the ChiNext Index hit an intraday high of 4158.69 points, once again setting a new all-time record. Since the rebound began on September 24, 2024, the ChiNext Index has surged over 163%, significantly outperforming major A-share benchmarks like the SSE 50, CSI 300, and CSI 500.
Within the ChiNext board, the artificial intelligence sector has been a breeding ground for star performers. A key representative index, the ChiNext Artificial Intelligence Index, has risen 210.71% in the past year, 281.45% over three years, and 367.5% over five years, ranking first in all three return metrics among comparable indices like the STAR ChiNext AI Index, the Artificial Intelligence Index, and the CS Artificial Intelligence Index. (Data source: Wind; as of May 29, 2026)
With the index at new highs, investors' most pressing questions are: after such a significant rise, is there a bubble? Does it still hold investment value? And, under the wave of AI, how much more growth potential does the ChiNext board have?
Breaking 4100: ChiNext Hits New Highs, Yet Valuations Remain Reasonable
A "new high" does not equate to a "bubble"—this is the key premise for understanding the current investment value of ChiNext.
Looking at the latest valuation levels through the price-to-earnings (P/E) metric, as of May 29, 2026, the ChiNext Index (399006) has a trailing P/E ratio around 49x. This is cheaper than over one-third of the period in the past decade and nearly half of the time since the index's inception in 2010. (Data source: Wind)
Chart: Historical Trailing P/E Trend of the ChiNext Index
As of May 29, 2026, the trailing P/E percentile rankings over the last decade for the Shanghai Composite Index and the Shenzhen Component Index both exceed 99%. In contrast, the valuation attractiveness of the ChiNext Index stands out. China Securities Co., Ltd. states plainly: the ChiNext Index remains the most cost-effective direction within A-shares.
High growth underpins the valuation foundation. Sustained earnings growth is the core logic supporting the ChiNext Index's ability to navigate macroeconomic cycles. As some analysis points out, the index is entering a virtuous cycle of "continuously digesting valuation through profit growth."
Chart: Financial Data Statistics for the ChiNext Index Over the Past Decade
Furthermore, a noteworthy positive signal is the rapid increase in the concentration of the ChiNext Index's weightings, moving closer to a structure resembling the Nasdaq's "MAG7." Currently, the top seven constituent companies account for about 52% of the index weight, a significant rise from around 10% in 2019. (Data source: Wind; as of May 29, 2026)
Entering a New Era: AI Hardware Tech Drives a New Round of Industrial Upgrading
Looking back over the past sixteen years, the trajectory of the ChiNext Index has pulsed in sync with China's growth industries, experiencing three magnificent industrial cycles:
2012-2015: Against the backdrop of "Internet Plus" becoming a national strategy, ChiNext ignited a growth rally centered on TMT (Technology, Media, Telecommunications). The index soared from below 600 points to a peak near 4000, with a maximum gain exceeding 570%, witnessing the germination and explosion of China's digital economy.
2016-2018: As mobile internet dividends gradually faded and supply-side reforms began, market profits concentrated in large-cap blue chips, favoring a large-cap value style. During this period, the ChiNext Index weakened, entering a three-year phase of volatile decline and valuation digestion.
2019-2021: Under the dual-carbon strategy, emerging industries like new energy, electronics, and pharmaceuticals came to the fore. ChiNext had its moment in the spotlight, with the index surging from under 1200 points to nearly 3600, showing clear outperformance compared to most broad-market indices.
Current Phase: Amid the AI wave, with global computing power demand exploding, ChiNext giants represented by Contemporary Amperex Technology Co., Limited (CATL), Zhongji Innolight Co., Ltd., New Sea Union Technology Group Co., Ltd., Sungrow Power Supply Co., Ltd., Shenghong Technology Co., Ltd., and Tianfu Communication Co., Ltd. have risen strongly. They are driving the entire industrial cluster forward on the two high-growth tracks of AI computing power and new energy.
ChiNext AI: Soaring 289% in a Super-Cycle
With the massive explosion of the AI industry, the ChiNext Index has repeatedly hit new highs, breaking past 4100 points. The AI sector within ChiNext has demonstrated particularly explosive power.
Since entering a super-cycle on April 8, 2025, the ChiNext Artificial Intelligence Index (970070) achieved a maximum gain exceeding 289%, significantly outperforming comparable AI-themed indices. Currently, the index remains near its historical highs. (Data source: Wind; as of May 29, 2026)
The ChiNext Artificial Intelligence Index allocates roughly 70% of its portfolio to computing power (leaders in optical modules/CPO), capturing key players, and about 30% to AI applications, representing not just the core of computing power but also AI application leaders.
As the first ETF in the market tracking the ChiNext Artificial Intelligence Index, the ChiNext Artificial Intelligence ETF (159363) has seen its on-exchange price climb steadily since its listing on December 16, 2024, becoming a precise tool for investors to access the high-growth intersection of "ChiNext + AI."
Amid the heated market, funds have flocked to this ETF. As of May 28, 2026, the ChiNext Artificial Intelligence ETF (159363) had a latest size of 7.712 billion yuan, ranking first among 30 dual-innovation AI ETFs tracking indices like the ChiNext AI Index, the STAR AI Index, and the STAR ChiNext AI Index. Its average daily turnover over the past six months was 870 million yuan, giving it the highest liquidity among all AI-themed ETFs in the market. (Data source: Shanghai and Shenzhen Stock Exchanges; as of May 28, 2026)
A "Broad-Based Enhanced + High-Beta Sector" Portfolio: Comprehensively Capturing ChiNext Dividends
Looking ahead, the fund manager of the ChiNext Artificial Intelligence ETF (159363) stated that after a broad-based rally, market structure will intensify. As the market potentially moves towards valuation froth in the later stages, the certainty of sector leaders will improve, making holding leaders in specific segments likely the optimal choice. The leading optical module companies included in this ETF, while having seen substantial stock price gains, still have controllable valuations, potentially offering more relative stability even if the market weakens.
In the current AI industrial cycle, investors might consider the ChiNext Artificial Intelligence ETF (159363) and its off-exchange feeder fund (023407) as core holdings for AI exposure to capture the core dividends of the AI industry boom. Simultaneously, for investors seeking broader ChiNext market beta and potential quantitative alpha, the ChiNext Composite Enhanced ETF (159292) could be a complementary holding. Through a reasonable "broad-based enhanced + high-beta sector" portfolio allocation, investors may comprehensively capture the dividends of the ChiNext era while managing risk.
Note: From April 8, 2025, to April 29, 2026, the ChiNext Artificial Intelligence Index achieved a maximum gain of 289.86%, far exceeding the maximum gains of comparable AI-themed indices like the STAR ChiNext AI Index (236.99%), the Artificial Intelligence Index (185.09%), the CS Artificial Intelligence Index (160.60%), and the STAR AI Index (112.69%).
Special Reminder: Recent market volatility may be significant. Short-term gains or losses do not predict future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying high attention to position sizing and risk management.
Data sources: Shanghai and Shenzhen Stock Exchanges, Wind, etc.
Institutional views referenced from: 1) China Securities Co., Ltd. report dated April 19; 2) SDIC Securities report dated April 19.
ETF fee note: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%. On-exchange trading fees are subject to the rates charged by securities firms. No sales service fee is charged.
Feeder fund fee note: The ChiNext Artificial Intelligence ETF Feeder Fund C Class charges no subscription fee; a redemption fee of 1.5% applies for holdings under 7 days, and 0% for 7 days or more; a sales service fee of 0.3% applies. The ChiNext Artificial Intelligence ETF Feeder Fund A Class charges a subscription fee of 1% for amounts below 1 million yuan, 0.6% for 1-2 million yuan, and a flat 1000 yuan for 2 million yuan or more; a redemption fee of 1.5% applies for holdings under 7 days, and 0% for 7 days or more; no sales service fee is charged.
Risk Disclosure: The ChiNext Artificial Intelligence ETF and its feeder fund passively track the ChiNext Artificial Intelligence Index (base date: Dec 28, 2018; release date: July 11, 2024). The index's annual performance from 2021 to 2025 was: +17.57%, -34.52%, +47.83%, +38.44%, +106.35%. The ChiNext Composite Enhanced ETF tracks the ChiNext Composite Index (base date: May 31, 2010; release date: Aug 20, 2010). Index constituents are adjusted per its methodology; past back-tested performance does not indicate future results. Constituent stocks mentioned are for illustrative purposes only and do not constitute investment advice or represent holdings of any fund managed. The fund manager assesses the risk rating of the ChiNext Artificial Intelligence ETF & feeder fund and the ChiNext Composite Enhanced ETF as R4 (Medium-High Risk), suitable for Aggressive (C4) or higher risk profile investors. Suitability matching opinions are subject to sales agencies. Any information herein is for reference only. Investors are responsible for their own investment decisions. The views, analysis, and forecasts herein do not constitute investment advice, and no liability is accepted for any direct or indirect losses. Fund investment carries risk. Past performance is not indicative of future results. The performance of other funds managed does not guarantee this fund's performance. Invest with caution.
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