Thursday (October 29), major A-share indices all retreated, with the ChiNext and STAR Market posting the steepest declines. The hard-tech broad-based fund covering high-growth leaders in the dual-innovation sector — Huabao Dual-Innovation 50 ETF (588330) — saw its tracked index pull back in line with the market, ultimately closing down 5.28%. The index has now fallen back to its August level from last year, highlighting its allocation value. In fact, over the past 20 trading days, capital has continued to maintain a high level of attention.
Among constituent stocks, Dianke Lantian bucked the trend to lead gains with an 11% rise, while Transsion Holdings, United Imaging Healthcare, Daqo New Energy, and Mindray Medical all gained more than 2%. On the other hand, optical module leader Suzhou Tfc Optical Communication Co.,Ltd. (ASX: 300394) at one point hit the 20% daily limit-down during intraday trading, closing down more than 19%, while semiconductor leader Biwin Storage Technology Co.,Ltd. (ASX: 688525) fell over 15%, ranking among the biggest decliners and dragging down index performance.
Why the sharp pullback? First, overnight, Google's parent company Alphabet reported Q3 revenue and profit that both fell short of expectations, casting doubt on the pace of AI commercialization and weighing on global tech growth stock sentiment. Second, at the macro level, the Federal Reserve kept its benchmark interest rate unchanged as expected, but Governors Cook and Cleveland Fed President Hammack cast dissenting votes, advocating an immediate 25 basis point rate hike. The statement upgraded its description of economic activity to "strong expansion" and reiterated that "inflation remains elevated," fueling expectations for a December rate hike. The persistently high interest rate environment continues to weigh on tech growth stock valuations.
Regarding spotlight individual stocks, Suzhou Tfc Optical Communication Co.,Ltd. (ASX: 300394) reported Q3 results on October 28 that were actually not bad, but market pricing was built on higher expectations, creating a certain "expectation gap." Biwin Storage Technology Co.,Ltd. (ASX: 688525) saw significant year-over-year growth in the third quarter, but a sequential decline, falling short of market expectations for "quarter-by-quarter acceleration." Simply put, Tianfu Communication scored 98 points, but the market expected 100. Baiwei Storage's monthly exam total score was high, but it was not as high as the midterm exam last time. This is not a collapse of the fundamentals of "top students," but rather the market demanding "too much" from top students.
China Securities Co. believes that the magnitude and speed of this round of adjustment in the tech growth sector have reached historically extreme levels, and after short-term selling pressure is fully released, there is room for a technical rebound. Guolian Minsheng Securities pointed out that, on the premise that the industrial logic has not been falsified, sentiment-driven adjustments may instead provide a window to observe oversold recovery; there is a阶段性 divergence between short-term stock price fluctuations and the direction of industrial prosperity, and repair opportunities come from the convergence of this divergence. At the industrial level, domestic computing infrastructure is currently accelerating its expansion, and the deep adaptation of domestic large models with domestic chips has become a clear development trend. Behind this lies a deeper logic of great power competition and strategic support for industrial development.
At the policy level, the "15th Five-Year Plan" clearly states the aim to strengthen systematic layout targeting the world's scientific and technological frontiers, implementing strategic deployments in artificial intelligence, quantum technology, biotechnology, new energy, and other technologies. Not long ago, the State Council issued the "Opinions on Developing New Quality Productive Forces," further stating the need to fully implement the "AI+" initiative, clearly advancing AI's transformation of traditional enterprises, and strengthening the efficient supply of computing power, algorithms, data, and other resources.
Guotai Haitong Securities stated that, thanks to strong industrial trends, the A-share tech sector, especially AI leader companies, currently does not have obvious valuation risks. After a quarter of adjustment, the forward valuations of some representative companies have already reached a relatively low level. From a medium-term perspective, as industrial space further expands and microstructural issues are gradually digested, a comprehensive rally may still emerge and continue to strengthen, and the current period may be a good time for positioning.
Data shows that since hitting a historic high on July 1, as of October 28, the hard-tech broad-based indices (STAR Market and ChiNext 50, STAR 50, ChiNext 50) have all pulled back by more than 41%. However, during this period, ETFs tracking these three indices across the market collectively received net capital inflows of up to 166.7 billion yuan, exhibiting a "buy more as prices fall" characteristic. Market volatility has not deterred capital; instead, it has attracted real money in support.
Chart: Top 15 Constituent Stocks of Huabao Dual-Innovation 50 ETF (588330) by Year-on-Year Growth in Net Profit Attributable to Parent for the First Three Quarters
No Fear of Rotation, One-Click Access to China's Top Tech
The hard-tech broad-based fund — Huabao Dual-Innovation 50 ETF (588330) and its off-exchange feeder funds (Class A: 013317, Class C: 013318) — selects 50 strategic emerging industry companies with larger market capitalizations from the STAR Market and ChiNext, with 100% allocation to new quality productive forces. Optical modules account for 31%, semiconductors 43%, and batteries 11%. Weighted holdings include tech leaders such as Eoptolink Technology, Zhongji Innolight, CATL, and Cambricon. With a 20% price limit, the ETF offers low-threshold entry to capture the breakout power of the dual-innovation sector. Additionally, the ETF is a margin trading and securities lending target as well as a Stock Connect target, making it an efficient tool for one-click allocation to new quality productive forces.
Note: Huabao Dual-Innovation 50 ETF (588330) was previously known on-exchange as Dual-Innovation Leader ETF. Note: The optical module content comparison index is the CPO Index. Semiconductor and battery content is classified according to Shenwan Level 2 industries. Source: Shanghai and Shenzhen Stock Exchanges, etc., as of October 29, 2026. Institutional views reference sources: China Securities' October 19 report "The Medium-Term Trend of the Tech Sector Will Still Be Dominated by Consolidation at the Bottom"; Guolian Minsheng Securities' July 31 report "The Entire Semiconductor Chain Is Booming, Short-Term Fluctuations Need Not Be Overly Worried"; Guotai Haitong Securities' October 11 report "Expected to Strengthen After Consolidation, Mid-Term Tech Remains a Positioning Point." ETF fee-related notes: ETFs do not charge sales service fees. Subscription and redemption agency institutions may charge a commission of no more than 0.5%, which includes related fees charged by stock exchanges and registration institutions. On-exchange trading fees are subject to actual charges by securities companies. Feeder fund fee notes: Huabao CSI STAR Market and ChiNext 50 ETF Initiating Feeder Fund (Class A) subscription fee rate is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1% for amounts below 1 million yuan; redemption fee rate is 1.5% for holding periods within 7 days, 0.1% for holding periods of 7 days (inclusive) to 30 days, and 0% for holding periods of 30 days (inclusive) or more. No sales service fee is charged. Huabao CSI STAR Market and ChiNext 50 ETF Initiating Feeder Fund (Class C) does not charge a subscription fee, with a redemption fee rate of 1.5% for holding periods within 7 days and 0% for holding periods of 7 days (inclusive) or more; the sales service fee is 0.3%. Risk disclosure: Huabao Dual-Innovation 50 ETF passively tracks the CSI STAR Market and ChiNext 50 Index, whose base date is December 31, 2019, and was published on June 1, 2021. The constituent stock composition of the index is adjusted in due course according to the index compilation rules, and its back-tested historical performance does not predict the index's future performance. The index constituent stocks mentioned in this article are for demonstration purposes only; individual stock descriptions do not constitute investment advice of any form, nor do they represent the holdings information or trading activities of any fund under the manager. The fund manager assesses the risk level of Huabao Dual-Innovation 50 ETF as R4-Medium-High Risk, suitable for aggressive (C4) and above investors. The suitability matching opinion shall be subject to the sales institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice of any form to readers, nor do they bear any direct or indirect liability for losses caused by the use of the content of this article. Fund investment involves risks; past performance of a fund does not represent its future performance; the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Fund investment requires caution. MACD golden cross signal has formed; these stocks are performing well!
Comments