On July 3rd, over 21.7 billion yuan in primary capital flowed into the electronic sector, making it the top capital-attracting industry among the 31 primary Shenwan sectors.

The Huabao Electronic ETF (515260), which encompasses popular themes like PCB, memory chips, and the Apple supply chain, saw its intraday gains reach as high as 3.28% and is currently up 2.12%. Data from the Shanghai Stock Exchange shows the ETF has attracted a total of 2.38 billion yuan over the past 10 trading days.

Key Constituents Lead the Rally

In terms of constituent stocks, leaders in PCB and the Apple supply chain significantly led the gains. Within the PCB segment, Shennan Circuits Co.,Ltd. and Jingwang Electronics hit the daily limit-up, while Sheng Yi Technology rose over 8%. Among Apple supply chain leaders, Luxshare Precision surged more than 7%, and Universal Scientific Industrial gained over 8%.

Positive Catalysts Across Multiple Segments

The positive momentum is driven by a series of favorable developments across key electronic sub-sectors.

1. For PCB, the sector continues to benefit from both an expansion and price increase trend. Firstly, an expansion wave is underway, with 13 leading PCB companies, including Shennan Circuits Co.,Ltd. and Sheng Yi Technology, announcing capacity expansion plans, with total planned investments nearing 59 billion yuan. Secondly, a price increase trend is ongoing, with key PCB raw materials like electronic cloth, copper foil, PPE resin, and copper-clad laminate seeing sustained price hikes. Analysis suggests that driven by both raw material price increases and AI demand, the profit recovery logic for the PCB industry is clear. Leading companies with technological barriers and capacity advantages are expected to continue benefiting from industry-wide price hikes and market share gains.

2. Regarding the Apple supply chain, Apple has significantly raised its shipment forecast for foldable iPhones, targeting tens of millions of units. Research points out that the hardware increment for foldable phones is mainly concentrated in three areas: display modules, hinge structures, and storage. The value of components per device is significantly higher compared to standard iPhones, and the domestic supply chain is expected to fully benefit from the order expansion.

3. In the memory chip sector, at a recent industry conference, Lenovo released a market analysis stating that due to ongoing supply-demand imbalance, the high price levels for memory chips like DRAM and NAND may become a long-term norm. Other analysis notes that under the influence of the AI wave, memory chips are experiencing exceptionally high demand, particularly with HBM chip supply lagging severely behind demand. This massive demand is driving continued price increases for memory chips.

ETF Composition and Market Outlook

It is worth noting that the underlying index of the Huabao Electronic ETF (515260) includes a range of thematic stocks. These encompass PCB-related companies like Shenghong Technology and Sheng Yi Technology; memory chip stocks like Jiangbolong and Baiwei Storage; semiconductor silicon wafer stock Hugui Industry; semiconductor equipment stocks SMIC and Advanced Micro-Fabrication Equipment Inc.; advanced packaging stock Changdian Technology; glass substrate stock BOE; and MLCC stock Sanhuan Group, among others.

Looking ahead, market analysis indicates that July will usher in a dense window for semi-annual earnings pre-announcements, with industry prosperity being a core pricing factor. The AI hardware industry chain, which the electronic sector primarily covers, is identified as one of the directions with concentrated prosperity clues for the 2026 semi-annual reports.

Long-Term Performance and Product Details

Over a longer timeframe, the underlying index of the Huabao Electronic ETF (515260) has accumulated a gain of 130.81% over the past year. This performance has outpaced other electronic indices and has significantly outperformed major broad market indices.

The Huabao Electronic ETF (515260) and its feeder funds passively track the Electronic 50 Index. The ETF has significant exposure to the semiconductor and consumer electronics industries, aggregating popular themes such as PCB, MLCC, glass substrates, memory chips, and semiconductor equipment. Its top holdings include stocks like Luxshare Precision, Cambricon, Industrial Fulian, and SMIC. The ETF is also a margin trading and Stock Connect eligible security, serving as an efficient tool for a one-stop allocation to core electronic sector assets.

Data shows that the ETF's underlying index is deeply linked to global tech giants. As of the end of May, the weight of the Apple, Nvidia, and Google supply chains accounted for 49.34%, 28.50%, and 23.85% respectively, positioning it to potentially benefit from the industrial expansion and technological innovation of these major companies.

As of the end of June, the Huabao Electronic ETF (515260) had an asset size of 1.109 billion yuan, making it the largest ETF tracking this specific index in the market.

Investment Considerations

Investors are reminded that recent market volatility may be significant, and short-term price movements do not indicate future performance. Investors should make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.

For investors who are long-term bullish on the technology growth theme but concerned about high-level volatility, they may consider allocating to technology sub-sectors with relatively lower valuations.

Important Disclosures

ETFs do not charge sales service fees. Subscription and redemption agents may charge commissions of up to 0.5%, which include relevant fees charged by stock exchanges and registration institutions. On-market trading fees are subject to the actual charges by securities firms.

Risk Disclosure: The Huabao Electronic ETF passively tracks the CSI Electronic 50 Index. The base date for this index is December 31, 2008, and it was published on July 22, 2009. The composition of the index's constituents is adjusted according to its compilation rules, and its back-tested historical performance does not predict its future performance. The stocks and index constituents mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form and do not represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses the risk level of the Huabao Electronic ETF as R3-Medium Risk, suitable for Balanced (C3) and above investors. The appropriateness matching opinion is subject to the sales institution. Any information appearing in this article is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or间接 losses arising from the use of this content. Fund investment involves risks. The past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment should be approached with caution.