Following yesterday's sharp decline, the market stabilized and recovered, with the three major indices closing higher today. The Shanghai Composite Index rose 0.87%, the Shenzhen Component Index gained 2.30%, and the ChiNext Index jumped 2.84%. The total market turnover was approximately 2.92 trillion yuan, lower than yesterday, indicating a rise in cautious sentiment, yet growth-oriented styles significantly outperformed. On the market, technology manufacturing sectors like PCB, components, and semiconductors led the gains, while heavyweight sectors such as baijiu and securities underwent adjustments.
The Huabao Sci-Tech Enhanced ETF (589280), offering one-click exposure to hard technology, experienced volatility in the morning session before surging in the afternoon, closing up 2.51% with an on-market turnover of 19 million yuan. Among its constituents, Tiancheng Technology and Huizhi Micro both hit the 20% daily limit up. Within the top ten weighted holdings, Lianyun Technology and Xingfu Electronics rose over 4%, while SMIC and Montage Technology gained more than 3%. Cambricon closed slightly lower.
In terms of capital flows, today's market exhibited clear structural characteristics, with hard technology tracks becoming the primary focus for funds. Main funds significantly flowed into the electronics sector, with a net inflow reaching 16.4 billion yuan, ranking first among the 31 Shenwan industries. The communications sector saw a net inflow of 5.3 billion yuan from main funds, placing second.
The STAR Market showed strength again today, with the STAR Composite Index surging 2.21%. Concept stocks related to PCB, physical AI/robotics, quantum technology, and space photovoltaics were active.
On the news front, NVIDIA's upcoming VR200 rack (Vera Rubin architecture) has an ODM procurement price of approximately $7.8 million, nearly doubling from the current GB300 rack (around $3.99 million). Within this, PCB value jumps from about $35,000 to roughly $116,000, a surge of 233%. Soochow Securities noted that the global AI server PCB market size will significantly increase from $3 billion in 2024 to over $20 billion in 2027, with corresponding year-on-year growth rates exceeding 100% and 70% for 2026 and 2027, respectively. The industry's trend of "rising volume and prices" is clear, with price increases extending from 2026 into 2027, and supply-demand gaps for high-end products are expected to persist.
Today, the National Development and Reform Commission announced at a press conference that it will accelerate the construction of embodied intelligence training infrastructure. This move aims to support high-quality embodied data collection and "large-small brain" model training, enhancing robots' general capabilities in various scenarios like factories, malls, and homes. A CITIC Securities research report stated that the physical AI (intelligent driving and robotics) sector currently offers attractive value for allocation, having experienced significant adjustments since the beginning of the year. The mid-year period coincides with intensive catalysts for related companies like Tesla, including the release and mass production of Optimus V3, large-scale Robotaxi operations, and Yushu's listing. Combined with improving risk appetite and liquidity, this could further strengthen the upward trend.
A Southwest Securities research report suggests the STAR Composite Index possesses an excellent Alpha-Beta return structure. In terms of Beta, the index covers a wide range of hard technology tracks, with constituent stocks generally exhibiting higher growth elasticity and market sensitivity, reflecting the evolutionary trend of new quality productive forces, providing ETF products with stronger "offensive beta" exposure. Regarding Alpha, as the constituents include many small and mid-cap sci-tech innovation enterprises where market efficiency is relatively lower, it offers richer stock selection space for active enhancement strategies, possessing strong potential for excess returns.
The Huabao Sci-Tech Enhanced ETF (589280) offers four main advantages: 1. High "AI Content": AI is currently the strongest theme in the A-share market. The STAR Composite Index tracked by this ETF is the most comprehensive and pure one-click configuration tool for this theme, with semiconductors accounting for over 40% of the index's industry weight. It also covers AI application scenarios like software services and pharmaceuticals, resulting in very high AI content. 2. High Index Elasticity: As of May 19, 2026, the STAR Composite Index has accumulated a gain of 31% year-to-date, outperforming mainstream broad-based indices like the ChiNext Index, CSI 300, and CSI 500 over the same period. 3. Low-Threshold One-Click Access: Direct investment in STAR Market stocks involves certain access restrictions, while ETF investment has relatively lower thresholds. Based on the current price, investment can start with just around a hundred yuan. 4. Pursuit of Excess Returns: The Huabao Sci-Tech Enhanced ETF primarily employs a quantitative multi-factor stock selection model, refined through long-term tracking research and real-market testing, aiming to capture excess returns.
It is worth noting that investors without securities accounts can access hard technology companies through the corresponding offshore index-enhanced fund—Huabao STAR Composite Index Enhanced (Class A: 024752, Class C: 024753).
Investors are reminded that recent market volatility may be significant, and 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 and risk management.
Fee Note: Subscription and redemption agents for the Huabao Sci-Tech Enhanced ETF may charge a commission not exceeding 0.3%. On-market trading fees are subject to the rates set by securities firms. 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 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 sales service fee is 0.30% per annum.
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