The A-share market staged a powerful rebound on June 15th. By the close, the Shanghai Composite Index had gained 1.61%, the Shenzhen Component Index surged 3.79%, and the ChiNext Index led the gains among the three major indices with a jump of 5.30%. The Sci-Tech Innovation Board Comprehensive Index, reflecting the overall performance of the STAR Market, rose sharply by 4.89%. The combined trading volume for the Shanghai and Shenzhen markets reached approximately 3.03 trillion yuan, with about 3,900 stocks advancing and over 160 hitting their daily limit-up, indicating significant positive market sentiment.
On the market, AI hardware sectors such as PCB, CPO, semiconductors, and MLCC became the absolute main theme, with a wave of limit-up gains among constituent stocks.
HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD COMPREHENSIVE ENHANCED STRATEGY TRADING OPEN ENDED I (589280), which provides one-click exposure to hard technology, opened higher and maintained strong performance throughout the session, rallying further near the close to finish with a massive 5.20% gain. This marked its largest single-day increase since listing, with on-market turnover hitting 23.21 million yuan. Among its holdings, stocks like Delong Laser, Jiguang Technology, and Ruisong Technology surged by the 20% daily limit. All of its top ten weighted constituents closed higher, with "domestic AI chip leader" Cambricon rising over 7%, and Hygon Information and Montage Technology both gaining more than 6%.
Capital Flow Dynamics
In terms of fund flows, the hard technology track once again became the primary target for capital. According to the primary Shenwan industry classification, significant net inflows from major funds went into the electronics and communications sectors, reaching 18.6 billion yuan and 13.0 billion yuan respectively, ranking first and second among the 31 Shenwan industries.
Fundamental Drivers Behind the Rally
Multiple favorable industry developments converged, providing fundamental support for today's tech sector surge. Notably, the PCB and MLCC sectors experienced a full-blown breakout. The core catalyst for both sectors' movements is the "volume and price increase" logic driven by the explosive demand for AI computing power. The PCB sector benefits from rising upstream material costs and a wave of capacity expansion projects coming online, while the MLCC sector gains from a confirmed supply-demand inflection point and structural shortages in high-end models.
Morgan Stanley forecasts that the global AI optical module PCB market will grow from $620 million in 2025 to $3.77 billion by 2028, a more than fivefold increase in three years, with a compound annual growth rate of 83%, far exceeding the 60% growth rate for optical modules during the same period.
Guosen Securities indicates that the MLCC industry is entering a new super-cycle of "volume and price increases" driven by the dual resonance of "explosive demand" and "strategic contraction by major suppliers on the supply side." Estimates suggest that the compound annual growth rate for AI server MLCC demand quantity from 2026 to 2030 will be 25%-32%, with the value CAGR exceeding 85%.
Exposure to Hard Tech with Quantitative Enhancement
HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD COMPREHENSIVE ENHANCED STRATEGY TRADING OPEN ENDED I (589280) tracks the Sci-Tech Innovation Board Comprehensive Index, which provides a comprehensive reflection of the overall STAR Market. The index has a high concentration of "hard technology," with its largest sector (Shenwan primary), electronics, accounting for 56.9%, significantly higher than the electronics weighting in major broad-based indices like the ChiNext Index, CSI 300, and SSE 50.
Its "hard tech" characteristic is also reflected in strong innovation capability. In 2025, the overall R&D expenditure for the sector reached 189.247 billion yuan, maintaining a nearly 13% R&D intensity for seven consecutive years, ranking highest among all major A-share market segments.
A Southwest Securities research report suggests that the Sci-Tech Innovation Board Comprehensive 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 trend evolution of new quality productive forces, providing ETF products with stronger "offensive beta" exposure. For Alpha, as the constituents cover a large number of small and mid-cap tech innovation companies where market efficiency is relatively lower, it offers richer stock selection space for active enhancement strategies, possessing strong potential for excess returns.
HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD COMPREHENSIVE ENHANCED STRATEGY TRADING OPEN ENDED I (589280) offers four key advantages:
1. High "AI Content": AI is currently the strongest theme in the A-share market. The Sci-Tech Innovation Board Comprehensive Index tracked by this ETF is the most comprehensive and pure one-click configuration tool for this theme. The index has over 40% exposure to semiconductors and also covers AI application scenarios like software services and pharmaceuticals/ biotech, giving it very high AI content.
2. High Index Elasticity: As of June 15, 2026, the Sci-Tech Innovation Board Comprehensive Index has achieved a cumulative year-to-date gain of 30%, outperforming mainstream broad-based indices like the ChiNext Index, CSI 300, and CSI 500 over the same period.
3. Low-Barrier One-Click Investment: Direct investment in individual STAR Market stocks requires certain qualification thresholds, while ETF investment has relatively lower barriers. Based on the current price, an investment can be started with around one hundred yuan.
4. Aiming for Excess Returns: This ETF primarily employs a quantitative multi-factor stock selection model, refined through long-term research and real-market testing, aiming to capture excess returns.
It is worth noting that investors without a securities account can access hard tech companies through the over-the-counter index-enhanced fund – Huabao Sci-Tech Innovation Board Comprehensive Index Enhanced (Class A 024752, Class C 024753).
Important Investor Notice
Recent market volatility may be elevated, and short-term price movements 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 sizing and risk management.
Fee Information: The subscription and redemption agents for this ETF may charge a commission not exceeding 0.3%. On-market trading fees are subject to the actual charges 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 a flat 1000 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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