The electronics sector led the market higher against the broader trend today (June 4th). The Huabao Electronics ETF (515260), which has over 49% exposure to the Apple supply chain, saw its intraday gain climb to 2.34% and is currently up 1.8%, poised for a third consecutive daily gain.
Among its constituent stocks, Boe Technology Group Co.,Ltd. and Sanan Optoelectronics Co.,Ltd.
Key Catalysts for the Move
The upcoming catalyst is Apple's annual Worldwide Developers Conference (WWDC), scheduled to begin on June 8th local time. A fully revamped Siri and system-level AI features are the core highlights expected. Concurrently, anticipation is building for Apple's fall product lineup, including a foldable iPhone and a touchscreen MacBook, coupled with substantial AI upgrades. This has elevated market expectations for Apple's product cycle in the second half of the year.
According to Omdia forecasts, global shipments of foldable smartphones are expected to grow 51% year-over-year by 2026. This expansion will directly drive demand for Ultra-Thin Glass (UTG) and hinges. Datong Securities believes Apple's entry into this segment will accelerate the industry's shift from "form innovation" to "ecosystem synergy." Future competition is expected to pivot from pure hardware specifications to a comprehensive test of system ecosystems, AI capabilities, and supply chain costs.
Caixin Securities notes that AI empowerment is reshaping the value ceiling of foldable phones. With Apple anticipated to launch its first foldable product in 2026, its vast base of premium users is expected to boost market acceptance of the foldable category and drive growth in the related supply chain. They recommend focusing on core incremental segments within the foldable supply chain, such as UTG, hinges, and MIM structural components.
Currently, over 70 A-share companies are involved in the flexible/foldable screen concept, with a combined market capitalization nearing 2 trillion yuan. Lens Technology and Boe Technology Group Co.,Ltd. lead in scale, while Huagong Tech, Lingyi iTech, and TCL Technology each boast market caps exceeding 100 billion yuan.
ETF and Index Performance
Data shows the underlying index of the Huabao Electronics ETF (515260) covers popular tech themes. As of the end of May, the weightings of the Apple, NVIDIA, and Alphabet supply chains were 49.34%, 28.50%, and 23.85% respectively, deeply linking the ETF to the growth of global tech giants and positioning it to benefit from their industrial expansion and technological innovation.
Over a longer horizon, the underlying index of the Huabao Electronics ETF (515260) (the Electronic 50 Index) has surged 125.28% over the past year, outperforming peer indices like the CSI Electronics Index (114.61%), as well as major broad-based indices such as the STAR 50 (76.68%) and the CSI 300 (28.61%).
Statistical data period: June 3, 2025, to June 3, 2026. The Electronic 50 Index's annual performance for the past five full years is: 2021, 3.27%; 2022, -38.63%; 2023, 1.03%; 2024, 27.45%; 2025, 43.49%. The index's constituent stocks are adjusted per its compilation rules; its historical back-tested performance does not indicate future results.
Investment Vehicle for Technology Exposure
The Huabao Electronics ETF (515260) and its feeder fund (Class A: 012550 / Class C: 012551) passively track the Electronic 50 Index. It focuses on the semiconductor and consumer electronics sectors, aggregating exposure to hot industries like AI chips, automotive electronics, 5G, and printed circuit boards (PCBs). Its top holdings include 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 gaining exposure to core electronic sector assets.
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