The first half of the trading year has concluded for the A-share market, with the three major indices all closing higher, delivering an impressive performance. The STAR 50 Index surged more than 64% over the six-month period, while the ChiNext Index gained over 35%.

Among exchange-traded funds, the top performers were those focused on semiconductors. The Ping An CSI STAR Semiconductor Equipment ETF, the ChinaAMC CSI STAR Semiconductor ETF, and the Huatai-PineBridge CSI STAR Semiconductor Equipment ETF each recorded cumulative gains exceeding 170%, ranking them in the top three.

Some brokerages have noted that major overseas memory manufacturers are accelerating production expansion. Meanwhile, delivery cycles for overseas equipment suppliers are being prolonged due to shortages of key components. This situation is creating a window of opportunity for domestic equipment makers to expand internationally, suggesting a potential inflection point for Chinese equipment exports. Furthermore, with the interim earnings season approaching, market attention is expected to increase on semiconductor equipment segments with solid fundamental performance support.

On the downside, ETFs tracking Hong Kong-listed internet stocks were among the worst performers. The E Fund Hong Kong Stock Connect Internet ETF, the Fullgoal Hong Kong Stock Connect Internet ETF, and the China Southern Hong Kong Stock Connect Internet ETF all fell nearly 38%.

Analysis suggests that the overall volatile pattern in the Hong Kong internet sector is likely to persist, with low certainty for a near-term trend reversal from current difficulties. From an operational standpoint, a wait-and-see approach may be more appropriate currently. While there are expectations for marginal improvements in the fundamentals of major internet companies, clearer signals of market stabilization may need to wait for the interim results season in July and August. Observing whether the sector can establish a stable bottoming platform could present opportunities for phased recovery and strategic positioning at lower levels.