June trading concluded with the three major indices all closing higher. The Shanghai Composite Index gained 0.50%, the Shenzhen Component Index surged 2.48%, and the ChiNext Index jumped 2.99%. Trading volume across the two exchanges reached 3.27 trillion yuan, marking the 12th consecutive session above the 3 trillion yuan threshold. The hard tech sector continued its robust performance, with the Science and Technology Innovation Board Composite Index soaring 4.29% today to a fresh record high.
The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD COMPREHENSIVE ENHANCED STRATEGY TRADING OPEN ENDED I (589280), a fund offering one-click exposure to hard tech, delivered another strong performance today. It climbed steadily throughout the session and closed up 5%, hitting a new all-time high since its listing. On-exchange turnover reached 15 million yuan, securing a second consecutive positive daily close. The vast majority of its top ten holdings by weight ended the day higher, with top-weighted Cambricon Technologies Corporation Limited (688256) surging over 7%, pushing its market capitalization above the one trillion yuan mark.
Key Drivers for Today's Rally
Multiple positive catalysts from both policy and industrial fronts fueled today's rally on the STAR Market. On the policy front, a State Council executive meeting on June 29 emphasized intensified efforts to achieve breakthroughs in artificial intelligence innovation, accelerate key technology research and development, and build ultra-large-scale intelligent computing clusters, while also deepening the implementation of the "AI+" initiative. On the industrial front, the South Korean government, in collaboration with Samsung and SK Group, announced a domestic corporate investment plan totaling 475.5 trillion won on June 29, focusing on three core super-projects: semiconductors, physical AI, and AI data centers.
Institutional Outlook on Hard Tech
Financial institutions maintain a positive outlook on the hard tech theme. Galaxy Securities believes that as the market enters the mid-year earnings preview window in July, the core market logic will shift towards earnings realization. It recommends focusing on hardcore tech companies and industry leaders with solid order books, high profit growth, and sustained positive industry momentum. Soochow Securities noted in a research report that the A-share market exhibited a significant "K-shaped" performance in the first half of 2026, with the hard tech theme centered on AI computing power becoming the primary destination for existing market liquidity. The current market is at a critical juncture transitioning from valuation-driven to earnings verification. CITIC Securities points out that the A-share tech sector has recently shown significantly stronger resilience compared to overseas markets, particularly the domestic computing power supply chain, which has demonstrated a trend independent of its global counterparts. Driven by narratives of localization and self-sufficiency, the domestic supply chain is exhibiting a typical growth stock premium.
Understanding the Enhanced ETF Strategy
The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD COMPREHENSIVE ENHANCED STRATEGY TRADING OPEN ENDED I (589280) tracks the Science and Technology Innovation Board Composite Index, which comprehensively reflects the overall performance of the STAR Market. The index has a high "hard tech" concentration, with its largest sector (Shenwan primary industry classification) being Electronics, accounting for 56.9%—significantly higher than the proportion in major broad-based indices like the ChiNext Index, CSI 300, and SSE 50.
This "hard tech" characteristic is also reflected in strong innovation capabilities. The total R&D expenditure for the entire STAR Market in 2025 reached 189.247 billion yuan, maintaining an R&D intensity of nearly 13% for seven consecutive years, ranking first among all A-share market segments.
A research report from Southwest Securities suggests that the Science and Technology Innovation Board Composite Index possesses an excellent Alpha-Beta return structure. In terms of Beta, the index covers a wide range of hard tech sectors. Its constituent stocks generally possess higher growth elasticity and market sensitivity, reflecting the trend evolution of new quality productive forces, providing ETF products with stronger "offensive beta" exposure. Regarding Alpha, as the index includes a large number of small and mid-cap technology innovation companies where market efficiency is relatively lower, it offers richer stock selection opportunities for active enhancement strategies, presenting stronger potential for generating excess returns.
Key Advantages of the Enhanced ETF
The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD COMPREHENSIVE ENHANCED STRATEGY TRADING OPEN ENDED I (589280) is highlighted for four main advantages. First, it has high "AI content." As AI is currently the strongest theme in the A-share market, the underlying index tracked by this ETF offers the most extensive and purest one-click configuration tool for this theme. Semiconductors account for over 40% of the index's industry weight, while it also covers AI application scenarios such as software services and pharmaceuticals, resulting in a very high overall AI exposure.
Second, the index exhibits high elasticity. As of June 15, 2026, the Science and Technology Innovation Board Composite Index has gained 30% year-to-date, outperforming mainstream broad-based indices like the ChiNext Index, CSI 300, and CSI 500 over the same period.
Third, it provides low-barrier, one-click access. Direct investment in individual STAR Market stocks comes with certain qualification thresholds, whereas ETF investment has relatively lower barriers. Based on the current price, an investment can be initiated with just around one hundred yuan.
Fourth, it aims to capture excess returns. The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD COMPREHENSIVE ENHANCED STRATEGY TRADING OPEN ENDED I primarily employs a quantitative multi-factor stock selection model, which has undergone extensive research, tracking, and real-market testing, striving to achieve alpha.
It is worth noting that investors without a brokerage securities account can access hard tech companies through the corresponding over-the-counter index-enhanced fund: Huabao Shanghai Science and Technology Innovation Board Comprehensive Index Enhanced (Class A: 024752, Class C: 024753).
Important Investor Considerations
Investors are reminded that recent market volatility may be significant, and short-term price movements are not indicative of 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.
A fee note: Subscription and redemption agents for the HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD COMPREHENSIVE ENHANCED STRATEGY TRADING OPEN ENDED I may charge a commission of up to 0.3%. On-exchange trading fees are subject to charges by the respective securities firm. For Huabao Shanghai Science and Technology Innovation Board Comprehensive Index Enhanced A, the subscription fee is 1.20% for amounts below 500,000 yuan, 0.80% for 500,000 yuan (inclusive) to 1 million yuan, 0.40% for 1 million yuan (inclusive) to 5 million yuan, and a flat 1,000 yuan per transaction for 5 million yuan (inclusive) and above. The redemption fee is 1.50% for holdings under 7 days, 0.50% for 7 days (inclusive) to 30 days, and 0.00% for 30 days (inclusive) and above. No sales service fee is charged. Huabao Shanghai Science and Technology Innovation Board Comprehensive Index Enhanced C charges no subscription fee. The redemption fee is 1.50% for holdings under 7 days and 0.00% for 7 days (inclusive) and above. The annual sales service fee is 0.30%.
Risk Disclosure: This fund is issued and managed by Huabao Fund. Distributors do not bear responsibility for the product's investment, performance, or risk management. Investors should carefully read the Fund Contract, Prospectus, Key Facts Statement, and other legal fund documents to understand the fund's risk-return characteristics and select products suitable for their own risk tolerance. The fund manager assesses this fund's risk level as R4 (Medium-High Risk), suitable for Aggressive (C4) and above investors. Suitability matching opinions are subject to the distributor's assessment. Distributors (including the fund manager's direct sales channels and other distributors) evaluate the fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by distributors and base their decisions on the matching results. Suitability opinions from different distributors may not be consistent, and a distributor's assessed fund product risk level cannot be lower than the risk level assessment 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 make careful investment decisions based on their investment objectives, horizon, experience, and risk tolerance, bearing their own risks. 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. The fund's past performance and net asset value do not predict its future performance. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Funds carry risks; investment requires caution. Any information appearing in this material (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any form to readers, nor shall they bear any responsibility for direct or indirect losses arising from the use of this content.
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