On the morning of August 4, the optical module and CPO sector staged a strong recovery, continuing the rally in AI-related stocks on the ChiNext board. Optics Valley Technology surged 15%, Tianfu Communication jumped 10%, while Zhongji Innolight and New Ease both rose over 7%. Other stocks, including Changxin Bochuang and Liantek Technology, also advanced more than 5%.

In the ETF space, the heavy optical module-focused ChiNext AI ETF Huabao (159363) opened higher with a gap up, currently gaining 6% to reclaim its 10-day moving average. Trading volume exceeded 500 million yuan, with intraday net capital inflows of 28 million fund units as investors added positions.

Where to begin? Guosheng Securities noted that after the panic-driven sell-off, the optical communications sector is moving towards a "turn for the better." Amazon provided a clear breakdown of its AI capital expenditure logic, effectively addressing the market's core concern over whether massive investments can generate sufficient returns. In terms of the correction, the sector's short-term decline has approached levels seen in previous deep pullbacks, with valuations retreating to historically reasonable lows.

Why just three key names? Domestic optical module leaders are trading below their historical average valuations. As of Friday's close, based on PE (FY1, the most recent forecast year), both Zhongji Innolight and New Ease are trading below their historical median levels. The market's pessimistic expectations for optical communications appear fully priced in, while the industry trend has not reversed directionally. When valuations are compressed to extremes and fundamentals continue to improve, the market will eventually reprice optical communications.

The ChiNext AI ETF Huabao (159363) and its over-the-counter feeder funds (Class A: 023407, Class C: 023408) focus on optical module and CPO leaders. The underlying index has a combined weighting of approximately 40% in Zhongji Innolight, New Ease, and Tianfu Communication, positioning it as a core vehicle for AI computing power. The fund currently has a scale exceeding 6.3 billion yuan, with an average daily trading volume of over 1 billion yuan in the past six months, leading all eight ETFs tracking the same index in both size and liquidity. Data sourced from the Shanghai and Shenzhen stock exchanges. For ETF subscription/redemption, agents may charge a commission of up to 0.5%. Trading fees are determined by the broker. The feeder fund Class C shares charge no subscription fee; redemption fee is 1.5% within 7 days and 0% after 7 days; annual service fee is 0.3%. Class A shares charge a subscription fee of 1% for amounts under 1 million yuan, 0.6% for 1 million to 2 million yuan, and 1,000 yuan for 2 million yuan and above; redemption fee is 1.5% within 7 days and 0% after 7 days; no service fee applies. Risk disclosure: The ChiNext AI ETF Huabao passively tracks the ChiNext AI Index, with a base date of December 28, 2018, and a launch date of July 11, 2024. The index's annual returns from 2021 to 2025 were 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, with annualized volatility of 23.73%, 27.34%, 38.02%, 45.42%, and 41.1%, respectively. Index constituents are adjusted per the index methodology. Historical back-tested performance does not guarantee future results. The constituent stocks mentioned are for illustration only and do not constitute investment advice, nor do they represent holdings of any fund managed by the firm. The ETF is rated as R4 (medium-high risk) and is suitable for active investors (C4 and above). The information provided (including stocks, commentary, forecasts, charts, indicators, theories, etc.) is for reference only. Investors should make independent investment decisions. The views, analysis, and forecasts herein do not constitute investment advice, and the provider is not liable for any losses incurred from use of this content. Fund investment carries risks; past performance is not indicative of future results, and performance of other funds managed by the firm does not guarantee this fund's performance. Invest with caution.