Last week, the A-share market displayed a pattern of structural divergence: the CSI 300 fell 0.61%, the CSI 500 gained 0.13%, the CSI 1000 rose 1.18%, the ChiNext 50 advanced 1.90%, and the STAR 50 dropped 1.51%. The ChiNext 50 led all major A-share indices for the week, validating our recent assessment over the past two weeks that growth-style investments are offering improving value. Average daily market turnover stood at approximately 2.34 trillion yuan, a slight decline from the previous week's 2.41 trillion, highlighting a distinct stock-picking environment with existing capital.

The telecommunications and pharmaceutical/biotech sectors posted the strongest gains, while non-ferrous metals and non-bank financials lagged behind. At the industry level, domestic computing-power chip makers are reporting rapid revenue growth, with the AI supply chain's momentum continuing to strengthen. As overseas cloud providers and leading domestic computing-power players progressively deliver strong earnings validation in the current reporting season, we recommend continued attention to the ChiNext 50 Index, which holds significant weight in core technology leaders across AI computing, semiconductor equipment, and new energy batteries. The ChiNext board serves as a direct financing platform for growth-oriented innovative enterprises.

Where to begin

In terms of sector weights, the ChiNext 50 Index concentrates on four key new-quality productivity tracks: information technology, new energy, fintech, and healthcare, giving it a distinctly pure technology-growth profile. From a horizontal comparison, the ChiNext 50 Index boasts higher concentrations in optical modules, new energy batteries, and fintech than the broader ChiNext Index and mainstream broad-based indices. The Huaan ChiNext 50 ETF (159949) brings together leading white-chip companies from advantageous ChiNext sectors, focusing on high-tech growth leaders with a return on equity maintained between 15% and 19% over the past six years. This advantage stands out against other major broad-based indices, with net profit attributable to parent company growing 21.58% in 2025 and 42.38% in Q1 2026. The current valuation stands at 37.95 times earnings, placing it at the 35.87th percentile over the past decade (data source: Wind, as of August 14, 2026).

On June 15, 2026, the ChiNext 50 Index conducted its semi-annual constituent adjustment, adding five new stocks—Tianhua New Energy, Shannon Semiconductor, GK Laser, Maxwell Technology, and Robotech—primarily from the electrical equipment, electronics, telecommunications, and machinery sectors. Meanwhile, five stocks were removed: Ultrapower Software, Robosense, Zhifei Biological, Tigermed, and Pharmaron, mainly from the pharmaceutical/biotech, media, and machinery sectors.

Key sector perspectives

In telecommunications, the sector (Shenwan classification) climbed 5.10% last week, leading gains, driven primarily by the continued strengthening of the AI computing optical interconnect theme. At the industry level, US optical communications leaders Lumentum and Coherent delivered better-than-expected earnings, further confirming the sustained explosive demand for optical interconnect in AI data centers. Domestic optical module frontrunners maintain high order visibility, with 800G/1.6T product shipments sequentially improving. On the catalyst front, Nvidia announced full-scale production of its Spectrum-X Ethernet silicon photonic switches—the world's first mass-produced 200G/lane CPO switch system—with supply chain involvement from domestic players including Tianfu Communication. As the CPO/NPO era accelerates, passive components linked to channel counts, such as MPO and FAU, are poised to shift from "volume growth with flat pricing" to "simultaneous volume and price growth," reinforcing the value-repricing logic for passive components. We recommend continued focus on optical modules, optical components, and the CPO supply chain, with the ChiNext 50 Index holding a 30% weight in optics-related names. (The above stocks are examples only and do not constitute investment advice.)

In the new energy battery space, the electrical equipment sector showed lackluster performance overall last week, with only the AIDC power direction posting gains. Nvidia released its 800V DC Architecture White Paper 2.0, outlining the roadmap for power distribution architecture evolution toward 800VDC and proposing three deployment options (rack-level, cluster-level, and data center-level), with rack-level solutions expected to enter mass production in Q3 2026. The white paper also signaled a positive push to "expand the ecosystem," suggesting more domestic companies may join Nvidia's 800V supply chain. UPS, HVDC, BBU, and liquid cooling components will directly benefit from the industry upgrade driven by rising AIDC power density. Traditional photovoltaics showed encouraging signs: wafer and cell prices rebounded sharply from cyclical lows, with N-type cell average prices rising 7.4%-7.5% week-on-week, supported by polysilicon price support expectations and US MIP policy triggering "rush-buy" demand. In energy storage, domestic new installations reached 16GWh in July, up 75% year-on-year, hitting a monthly record for the year and further confirming sector momentum. We suggest monitoring structural opportunities emerging from changes in AIDC power supplies (UPS/HVDC/BBU), liquid cooling, and the photovoltaic supply chain. (The above stocks are examples only and do not constitute investment advice.)

In electronics, the sector (Shenwan classification) rose 0.51% last week, with the components sub-industry leading at +1.18%, while consumer electronics (+0.16%) and semiconductors (+0.20%) posted modest gains. AI's expanding demand for electronics manufacturing resources continues to spread, with multiple segments including wafer foundry, memory, PCB, passive components, and analog chips seeing rising momentum. At the industry level, SMIC reported Q2 revenue of $3 billion (up 36.1% year-on-year) and Hua Hong Semiconductor posted Q2 revenue of $720 million (up 26.8% year-on-year); both foundries achieved record quarterly sales, with Q3 revenue and gross margin guidance continuing to improve sequentially, confirming a clear trend of rising volumes and prices. SMIC's earnings call explicitly noted that capacity for BCD and other analog process technologies is in tight supply and will remain so through the end of 2027, with AI demand expanding from memory and logic into power and analog product areas. In memory, SK Hynix announced the restart of its Dalian NAND fab expansion, increasing capacity by approximately 50%, alongside plans to invest 54 trillion won in Korea for capacity growth. SanDisk's investor day projects 15%-19% annual revenue growth for fiscal 2028-2030, with tight memory supply-demand balance expected to persist through at least 2027. Overall, the AI hardware rally is broadening from computing chips to multiple peripheral segments, and we recommend monitoring leaders across these specialized areas. (The above stocks are examples only and do not constitute investment advice.)

ETF overview

The Huaan ChiNext 50 ETF (ticker: 159949) tracks the ChiNext 50 Index, which selects 50 companies with high visibility, strong liquidity, and substantial market capitalization on the ChiNext board. The index currently covers leaders across five advantageous technology tracks: telecommunications, electronics, new energy batteries, internet finance, and biopharmaceuticals. The ETF offers robust liquidity with an average daily turnover of 2.116 billion yuan over the past year, ranking among the top ETFs on the Shenzhen Stock Exchange. The fund's latest net asset scale stands at 25.484 billion yuan, making it one of the larger funds tracking ChiNext-related indices in the market.

Risk disclosure

The above content is an objective introduction to the current constituent stock distribution of the underlying index and does not constitute any investment advice or a guarantee of investment returns. The index provider may subsequently adjust the index methodology, and constituent stocks and their weights may change dynamically. Please be aware of the risk of high concentration in certain index constituents with larger weights. This fund is an equity fund with relatively high risk and expected returns, primarily investing in constituent stocks and backup constituent stocks of the underlying index; its feeder fund mainly tracks the performance of the target ETF. The fund's expected returns and risks are higher than those of money market funds, bond funds, and hybrid funds, and it carries risk-return characteristics similar to the underlying index. The fund management company does not guarantee profits or minimum returns. Past performance does not indicate future results, and the performance of other funds managed by the same manager does not constitute a guarantee of this fund's performance. Fund product returns are subject to volatility risk; please invest with caution and carefully review the fund contract, prospectus, and other fund legal documents.