Technology stocks saw a strong second wave of buying in the afternoon session on July 3rd. The Huabao Technology ETF (515000), which aggregates leaders in electronics, communications, and computers, surged 3.5% intraday, with trading volume exceeding 7 billion yuan, hitting a nearly six-year high.
Among its constituent stocks, memory chip companies were active, with Demingli hitting the daily limit-up, Jiangbolong rising over 6%, and Zhaoyi Innovation turning positive. PCB stocks staged a significant rebound, with Shendan Circuit hitting the daily limit-up, Shengyi Technology gaining over 8%, and Hudian Co. advancing more than 6%.
Performance and Index Strength
In terms of performance, the Huabao Technology ETF (515000) has seen its market price frequently reach new highs recently, driven by the strength of its underlying index, highlighting its ongoing value for allocation. As of June 30, 2026, the Science and Technology Leaders Index has gained 72% year-to-date, significantly outperforming other popular tech indices like the STAR 50 over the same period. It functions like a "Pro Max" version of a broad-based tech fund, serving as a high-quality tool for investing in the core tech theme.
Note: The Huabao Technology ETF passively tracks the CSI Science and Technology Leaders Index. The index's base date is June 29, 2012, and it was launched on March 20, 2019. The index's annual historical returns from 2021 to 2025 were: -3.92%, -34.84%, 0.81%, 11.50%, and 51.54% respectively, with corresponding annualized volatilities of 21.46%, 26.5%, 19.83%, 36.36%, and 27.34%. The index's constituent stocks are adjusted according to its rules, and its past back-tested performance does not predict future results.
High-Purity Tech Focus
Looking at the secondary industry distribution, the CSI Science and Technology Leaders Index has a high concentration, with approximately 90% of its weight in three sectors: semiconductors, electronics, and communication equipment & technical services. This means the index's holdings are almost entirely focused on core technology hardware, aligning closely with current market themes like the AI computing chain, semiconductor localization, and optical communication. Its top ten holdings include leaders in various sub-sectors such as optical modules, semiconductor equipment, memory chips, and PCBs.
Product Strategy and Market Outlook
Hu Yijiang, the fund manager of the Huabao Technology ETF (515000), stated that as a smart-beta product in the growth sector, a key difference from other tech funds is that this ETF uses a growth factor to dynamically help investors allocate to high-growth-potential sectors, potentially saving research time. This product is suitable for investors who may not seek to capture unique opportunities in every tech sub-sector but are optimistic about the long-term prospects of technology, representing a more passive approach within the tech space.
Nomura Orient Securities indicated that the AI semiconductor cycle is far from peaking, with a potential "epic" supply chain mismatch anticipated in the second half of 2026. As cloud providers continue to expand capital expenditures, shortages in components like advanced packaging, PCBs, and copper-clad laminate (CCL) are expected to drive price increases and earnings revisions. While Taiwan Semiconductor Manufacturing (TSM) is aggressively expanding its wafer-level packaging capacity, the real supply bottleneck is likely to shift to wafer-on-substrate (WoS) and smaller components like printed circuit boards (PCBs) and CCL. This structural shortage will directly intensify short-term price volatility but also confirms the long-term sustainability of this cycle.
Investing in Tech Leaders
For exposure to the tech bull market, consider its leaders. The Huabao Technology ETF (515000) and its feeder funds (Feeder A: 007873, Feeder C: 007874) select 50 listed companies from the electronics, computer, communication, and biotech sectors in the Shanghai and Shenzhen markets based on their large scale, high market share, strong growth potential, and significant R&D investment. They represent the core assets of A-share tech leaders, combining attributes of "hard tech beta" and "excess alpha from high-quality leaders."
Data source: Shanghai and Shenzhen Stock Exchanges, etc. Note: "First domestic" refers to being the first ETF to track the CSI Science and Technology Leaders Index.
ETF Fee Note: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%. On-exchange trading fees are subject to the actual charges by securities firms. No sales service fee is charged.
Feeder Fund Fee Note: For Huabao Technology ETF Feeder A, the subscription fee is 1.00% for amounts below 1 million yuan, 0.60% for 1 million yuan (inclusive) to 2 million yuan, and a flat 1000 yuan per transaction for 2 million yuan (inclusive) and above. The redemption fee is 1.50% for holdings under 7 days, 0.50% for 7 days (inclusive) to 180 days, and 0.00% for 180 days (inclusive) and above. No sales service fee is charged. For Huabao Technology ETF Feeder C, no subscription fee is charged. 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 0.40% per annum. ETF subscription/redemption agents may charge a commission of up to 0.5%. On-exchange trading fees are subject to the actual charges by securities firms.
Risk Disclosure: The Huabao Technology ETF passively tracks the CSI Science and Technology Leaders Index. The index's base date is June 29, 2012, and it was launched on March 20, 2019. The index's constituent stocks are adjusted according to its rules, and its past back-tested performance does not predict future results. The index constituents mentioned are for illustrative purposes only; descriptions of individual stocks are not investment advice of any form and do not represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for Balanced (C3) and above investors. Any information appearing in this article (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for their own investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment involves risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest in funds with caution.
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