Today (November 25), the technology growth sector led a strong market rally, with the ChiNext Index rising over 2.5% and the STAR Composite Index gaining more than 1.7%. The Leading Innovation ETF (588330), which tracks high-growth leaders across ChiNext and STAR Market, surged 3.45% intraday and is currently up 2.5%, with real-time turnover exceeding RMB 32 million, reflecting active trading.
Key sectors driving the rally include optical modules, where top players Zhongji Innolight and Xinyisheng surged over 6%, while TFC Optical Communication rose more than 4%. In the PCB (printed circuit board) segment, Shenghong Technology advanced over 6%. Solar energy stocks also performed well, with Sungrow Power climbing more than 5% and Canadian Solar gaining over 2%.
In computing hardware, Meta Platforms is reportedly considering a multi-billion-dollar investment in Google's TPUs, including for its data center expansion. Earlier, Google officially launched its seventh-generation TPU, Ironwood, its most powerful and energy-efficient custom chip to date.
Regarding PCBs, HSBC's latest report highlights that the accelerated iteration of AI servers is driving a dual-cycle upgrade in both technology and pricing for core components like PCBs and copper-clad laminates (CCL). Citigroup previously projected that tight supply-demand conditions for AI PCBs could persist beyond next year.
Shenwan Hongyuan believes that a sustainable breakout in A-shares will ultimately rely on technology leadership. Guosen Securities notes that during rapid market rallies, leading sectors often align with dominant industry applications, such as "Internet+" in early 2015 and new energy vehicles in 2021. Looking ahead, the firm remains bullish on the tech sector as a primary driver.
[Exploring New Productive Forces: Investing in China's "Nasdaq"] The Leading Innovation ETF (588330) and its off-shore feeder funds (Class A: 013317 / Class C: 013318) offer three key features: 1. Cross-market diversification with 100% exposure to strategic emerging industries: The underlying index selects 50 large-cap strategic emerging industry stocks from the STAR and ChiNext markets, covering high-growth leaders in sectors like new energy, solar, optical modules, semiconductors, and medical equipment. 2. A growth-oriented "battle-ready" fund for China's top tech plays: Amid global tech competition, self-reliance and supply chain autonomy have gained unprecedented importance, positioning China's tech sector as a potential "Nasdaq of the East." 3. High-beta tool for tech rallies with low entry barriers: The underlying index's 20% daily price limit enhances rebound potential, making it a potential "recovery leader." Compared to direct investments in STAR or ChiNext stocks, the ETF offers lower thresholds—starting investments under RMB 100 at current prices.
Risk Disclosure: The Leading Innovation ETF and its feeder funds passively track the CSI STAR & ChiNext 50 Index (base date: Dec. 31, 2019; launch date: June 1, 2021). The index's annual returns from 2020-2024 were 86.90%, 0.37%, -28.32%, -18.83%, and 13.63%, respectively. Constituent adjustments follow index rules, and past performance does not guarantee future results. Mentioned stocks are for illustrative purposes only and do not constitute investment advice or reflect fund holdings. The fund manager rates this ETF as R4 (higher risk), suitable for aggressive (C4+) investors per distributor assessments. All information herein is for reference only, and investors bear full responsibility for independent decisions. No content constitutes investment advice, and the publisher assumes no liability for direct/indirect losses. Fund investments carry risks; past performance does not predict future returns, and other fund performances are no guarantee.
