The spotlight on AI safety and the development of AI technology is amplifying the essential demand for cybersecurity. The Huabao Information Technology Innovation ETF (562030) surged over 2.5%, while the Huabao Software Development ETF (159036) climbed as high as 1%.

Benefiting from the dual tailwinds of incremental AI security demand and domestic substitution in the IT innovation sector, the Huabao Information Technology Innovation ETF (562030), which focuses on the field of independent and controllable information technology, continued its rebound. Following a strong 2% gain yesterday, its intraday price rose over 2.5% today (July 9th), currently up 1.82%. Among its constituent stocks, Inspur Information hit its second consecutive limit-up, Primarius Technologies rose over 9%, with GRG Banking and Kingsoft Office also advancing.

The Huabao Software Development ETF (159036), targeting the forefront of AI applications, also extended its gains. After rising 2.56% yesterday, it touched a high of 1% intraday today, currently up 0.33%. Constituent stocks like Haitian Ruisheng surged over 8%, while Inspur Software and SIE Consulting rose more than 6%.

On the news front, China's Ministry of Industry and Information Technology issued a risk warning regarding security backdoor vulnerabilities in the AI programming tool ClaudeCode. Alibaba has already added Claude Code to its high-risk software list and will completely ban internal employees from using it in office environments starting July 10th.

Policy support is also intensifying. The People's Bank of China and three other departments jointly drafted the "Financial Industry Cybersecurity Management Measures (Draft for Comments)" for public consultation. The draft explicitly calls for enhanced protection of key information infrastructure in the financial sector, outlining compliance requirements in areas such as cybersecurity level protection, commercial cryptography usage, and supply chain security.

Zheshang Securities believes that AI will not completely replace cybersecurity vendors; instead, it will amplify the overall essential demand for security protection. Leading enterprises with full-stack AI security capabilities are seeing their technological moats continuously widen. Overseas leading AI companies are accelerating the deployment of specialized tool models for cybersecurity scenarios, while AI-powered automated cyberattack methods are evolving rapidly. This is forcing government and enterprise institutions to continuously increase their security procurement budgets. Domestic cybersecurity firms possessing AI security products and full-stack protection capabilities will benefit from both the incremental AI security demand and the domestic substitution trend in IT innovation.

Based on this, Zheshang Securities further points out that the software and security sectors will see demand boosted from three aspects: first, AI computing power construction directly drives demand for security hardware procurement; second, the proliferation of AI agents spurs new demand for identity security and AI monitoring; third, platform-based bundled subscription models are gaining traction, with customers preferring to increase centralized purchases from platform companies rather than buying scattered single-point modules.

From the perspective of Guohai Securities, cybersecurity budgets are expected to continue rising, with new budget allocations focusing on new cybersecurity technologies, new scenarios, and security services. Comprehensive cybersecurity vendors that have preemptively laid out new technologies and services are poised to benefit. Everbright Securities also holds the view that the deep integration of AI and cloud security is reshaping the competitive landscape of the global cybersecurity industry, with platform-type leaders benefiting first due to their continuous technological iteration.

In terms of investment vehicles, the Huabao Information Technology Innovation ETF (562030) and its feeder funds (Class A: 024050, Class C: 024051) passively track the CSI Information Technology Innovation Index. This index focuses on the field of independent and controllable information technology, covering core segments of the IT innovation industry chain such as basic hardware, basic software, application software, information security, and external devices. Its top holdings include leaders in storage chips (BIWIN Storage, Jiangbolong), domestic computing power (Hygon Information, Sugon), and AI applications (Hundsun Technologies, Kingsoft Office, 360 Security). Influenced by the "2+8+N" policy framework, related software and hardware orders are expected to accelerate.

The Huabao Software Development ETF (159036) passively tracks the CSI All Share Software Development Index, targeting the cutting-edge field of AI applications with a 100% allocation to the software development industry, encompassing 108 constituent stocks. The software development sector currently offers relatively high valuation attractiveness and safety margins. Coupled with AI empowerment and IT innovation drivers, the software development direction is expected to rise with the trend. As of the end of May, the weight allocations for concept constituents such as AI applications (iFlytek), cloud computing (Towell Information), IT innovation industry (Sangfor Technologies), fintech (Tonghuashun), cybersecurity (Baosight Software), and HarmonyOS ecosystem (AsiaInfo Security) were 46.58%, 43.50%, 42.36%, 29.90%, 15.72%, and 14.29%, respectively.

Risk Disclosure: The Huabao Information Technology Innovation ETF passively tracks the CSI Information Technology Innovation Index. The base date for this index is December 29, 2017, and it was published on December 21, 2012. The Huabao Software Development ETF passively tracks the CSI All Share Software Development Index. The base date for this index is December 31, 2021, and its release date is March 29, 2023. The composition of index constituents is adjusted according to the index compilation rules, and its backtested historical performance does not indicate future index performance. The index constituents and individual stocks mentioned herein are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses the risk rating of the Huabao Information Technology Innovation ETF and Huabao Software Development ETF as R3 - Medium Risk, suitable for Balanced (C3) and above investors. The appropriateness matching opinion should be based on the sales institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any kind to the reader, and no responsibility 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.