On Friday, August 7th, the A-share market experienced a volatile rebound, with the Shanghai Composite Index opening lower and closing higher, and total trading volume across both exchanges reaching 2.66 trillion yuan. Market hotspots rotated rapidly, with over 2,800 stocks across the entire market ending the day in positive territory. Hong Kong stocks also rose throughout the day, closing collectively higher. In terms of sector performance, CXO and innovative drugs led the rally, with key stocks such as WuXi AppTec and BeiGene surging in both their A-share and H-share listings simultaneously. Among ETFs, the HSCEI Medical ETF (159137) surged 5.51% on heavy volume, the Medical ETF (512170) jumped 4.53% to hit a three-month high, and the Pharmaceutical ETF (562050) and the HSCEI Innovative Drug ETF (520880) both rose over 4.5%. The computing hardware sector continued its rebound and repair, with PCB stocks experiencing a wave of limit-up moves. The Electronics ETF (515260) rose nearly 4% intraday, closing up 3.36% and achieving its fourth consecutive day of gains. Memory chip stocks strengthened, with the SSE STAR Chip ETF (589190) closing up over 3%, also marking its fourth straight day of gains. The HSCEI Information Technology ETF (159131), which focuses on hard technology, rose 2.87% on heavy volume. Optical module stocks saw a significant intraday pickup, with the high-profile ChiNext AI ETF (159363) closing up nearly 1% for its fifth consecutive daily gain. However, in the final trading minutes, heavyweight stock Zhongji Innolight experienced a sudden sharp decline, closing down over 3.5% with a single-day trading range exceeding 10%. According to market rumors, this unusual movement might be related to concerns over competition sparked by overseas optical module manufacturer AAOI's expansion plans. From a medium-to-long-term industry perspective, the optical module sector's prosperity still has multiple supporting logics.

Looking ahead, a recent report from Zhang Yidong of Guotai Junan Hai Securities suggests that the summer chill is nearly over, with a potential turnaround possibly emerging as early as the first half of August. Having led the correction since mid-May, the A-share and Hong Kong stock markets have already released some risks in advance. The current market is believed to have largely confirmed a bottoming area and is transitioning into a phase of shrinking volume, grinding bottoms, and building momentum. The report recommends positioning for the long term using a SMART framework to screen for hard-core assets in the AI era, focusing on the following main themes: first, high-tech and hard technology, anchoring on the AI technology theme for differentiation and dispersion, with careful stock selection. Second, safe-haven assets, covering key resource categories like non-ferrous metals (gold, copper, tungsten, molybdenum, rare earths) and energy. Third, the overseas expansion track, including power equipment, chemicals, and biomedical sectors. Fourth, selecting leading companies in traditional industries with earnings improvement potential, recommending allocation to non-bank financial leaders, with a particular focus on securities firms with high "AI content."

The following section discusses the trading and fundamental aspects of three key industry themes: pharmaceuticals, electronics, and the ChiNext AI sector, which were the focus of the ETFs.

The pharmaceutical sector exploded, with the entire innovative drug chain rallying strongly. Nearly 20 A-share and H-share stocks rose over 10%. WuXi AppTec's H-shares hit a new high. The HSCEI Medical ETF (159137), HSCEI Innovative Drug ETF (520880), Medical ETF (512170), and Pharmaceutical ETF (562050) all surged significantly. CXO leaders mounted a collective attack, with many rising over 10%. The WuXi AppTec system led the charge; WuXi AppTec's Hong Kong-listed stock rose 7% to an all-time high, while its A-share stock rose 8.49% to a five-year high. WuXi Biologics and WuXi XDC both rose over 10%. In the A-share market, Porton Pharma Solutions hit the 20% limit-up, while Asymchem and Joinn Laboratories hit the 10% limit-up. The HSCEI Medical ETF (159137) surged 5.51% on heavy volume. Its underlying index allocates nearly 50% weight to CXO leaders, with the WuXi AppTec system (WuXi AppTec, WuXi Biologics, WuXi XDC) accounting for over 35% of the weight. The Medical ETF (512170), with a CXO component weight of nearly 30%, jumped 4.53% to a three-month high with a turnover of 12.35 billion yuan. A-share and H-share innovative drug stocks attacked simultaneously. The Pharmaceutical ETF (562050), which focuses on A-share innovative drug stocks, and the HSCEI Innovative Drug ETF (520880), which invests entirely in Hong Kong-listed drugs, both rose over 4.5%. Leading stock BeiGene's A-shares surged 11.28%, while its H-shares rose 5.26%. In Hong Kong, Zai Lab skyrocketed 18.35% following its earnings report. The catalyst for this week's innovative drug and its supply chain has been particularly dense, with mid-year earnings results appearing to be the core driver. The net profit breakthroughs by CXO leaders validate the industry's high prosperity, while the high earnings growth of innovative drug leaders confirms the realization of commercialization. On the CXO front, WuXi AppTec's performance exceeded expectations, with half-year net profit attributable to the parent company breaking through the 10 billion yuan mark for the first time, reaching 11.08 billion yuan, a year-on-year increase of 29.43%. The company also significantly raised its full-year 2026 performance guidance, with the upper revenue bound increasing from 53 billion yuan to 60.5 billion yuan. On August 6th, WuXi Biologics officially announced the acquisition of CDMO assets from Yisanzhi (Yi'an Jishi) to supplement production capacity. On the innovative drug front, BeiGene's commercial validation continued, achieving a half-year net profit attributable to the parent company of 3.271 billion yuan, a year-on-year increase of 627.1%. The company also raised its full-year revenue forecast to between 44.9 billion and 46.2 billion yuan. Zai Lab's semi-annual report showed it achieved commercial profitability, with Q2 net product revenue reaching $105.8 million, a sequential increase of 11%. A research report from China Merchants Securities indicates continued optimism for the innovative drug industry trend, noting that the sector has transitioned from an initial oversold rebound to a rally driven by fundamentals and industry trends, with the influence of market style and capital rotation gradually weakening. As the mid-year earnings season and expectations for innovative drug pipeline catalysts arrive, the firm remains bullish on the pharmaceutical sector's outlook. For full-chain exposure to innovative drugs, ETFs offer a more efficient approach. For investing in innovative drugs, the HSCEI Innovative Drug ETF (520880), which is T+0 tradable, does not include CXO stocks, invests 100% in innovative drug development companies, and allocates 70% of its holdings to innovative drug R&D leaders. For A-share innovative drug opportunities, the Pharmaceutical ETF (562050), the only ETF tracking the pharmaceutical index, has an innovative drug component weight exceeding 72%. For CXO exposure, the T+0 tradable HSCEI Medical ETF (159137) has a CXO component weight of over 48%, with the WuXi AppTec system accounting for more than 35%. For A-share CXO opportunities, the Medical ETF (512170), the largest medical ETF by AUM, covers 8 CXO leaders with a combined weight of nearly 30%.

The electronics sector received net capital inflows of over 30.8 billion yuan throughout the day, ranking first among the 31 Shenwan first-level industries in terms of capital absorption. The Electronics ETF (515260), which gathers core leaders in the electronics sector, saw its intraday gain peak at 3.94%, eventually closing up 3.36%. It reclaimed its 20-day moving average and successfully achieved its fourth consecutive daily gain. Among its constituent stocks, PCB (Printed Circuit Board) leaders significantly outperformed. In the top ten contributors to the ETF's gains, PCB leaders occupied seven spots. SYE and Kinwong Electronic hit their daily limit-up, Victory Giant Technology surged over 12%, and Unimicron, Shennan Circuits, and WUS Printed Circuit followed with substantial gains. Memory chip concept stocks also performed well, with GigaDevice rising over 8%, and Longsys and Biwin Storage gaining over 5%. The reason for the PCB surge is likely due to a Goldman Sachs research report and Nvidia's Rubin architecture volume shipments. On August 6th, Goldman Sachs significantly raised its forecast for the PCB market size in a newly released report. The bank projects the global AI server PCB market will reach $37.5 billion by 2027, a 38% increase from its previous forecast, and further grow to $84 billion by 2028. Additionally, Nvidia's Rubin AI server has reached the starting point for scaled shipments, with the first batch of cabinets being deployed in facilities of OpenAI, Google, and others. It is estimated that total shipments for the full year of 2026 will reach 8,000 cabinets, reflecting the acceleration of AI infrastructure construction driving PCB demand recovery. Industry insiders point out that the most important signal from the Goldman Sachs report is the redefinition of the value anchor for AI hardware. The value center of gravity in the AI industry chain is shifting from "computing power chips" to "interconnect infrastructure." When the PCB value in a single AI rack reaches the level of tens of thousands of dollars, PCBs are no longer a subordinate component but a key hardware determining the performance of AI clusters. China Securities Co., Ltd. notes that benefiting from AI, the global PCB industry is entering a new upward cycle. With increasing demand for orthogonal backplanes and upgrades to the CoWoS process, PCBs will become more similar to semiconductors, with their value steadily increasing. Cloud manufacturers like Amazon, Meta, and Google have weaker in-house chip design capabilities than Nvidia, demanding higher material requirements for PCBs, making their value more elastic. On another front, the market is closely watching the sustainability of the memory chip price surge. Guojin Securities expects the memory upward cycle to extend to at least 2027, with the core reason being sustained supply tightness. Large model training and inference generate massive storage demand, while wafer fabs are constrained by construction and equipment procurement cycles, with new capacity taking about two years to release. The expansion pace of original manufacturers cannot match the demand explosion, and this supply-demand gap will support memory prices and scale reaching new heights. The Electronics ETF (515260) and its feeder funds (Class A: 012550, Class C: 012551) passively track the CSI Electronic 50 Index, focusing on semiconductors, components, and consumer electronics. It includes concepts like PCB, memory chips, semiconductor equipment, advanced packaging, glass substrates, semiconductor silicon wafers, and MLCCs, deeply embedding its constituent stocks in the supply chains of global tech leaders like Apple, Nvidia, and Google.

The ChiNext AI Index continued its rebound. The AI application concept stock ChineseAll led the gains, rising nearly 7%. Storage leaders Longsys and Ingenic both rose over 5%. Optical module CPO leaders saw a clear intraday pickup, with Tianfu Communication closing up over 2%. However, Zhongji Innolight experienced a sudden plunge in the final minutes of trading, closing down over 3.5% with a single-day volatility exceeding 10%. The ChiNext AI ETF (159363), which heavily weights optical module leaders, surged nearly 3% intraday but was briefly dragged into negative territory by the heavyweight's plunge before quickly recovering to close up nearly 1%, successfully achieving its fifth consecutive daily gain. The afternoon plunge in Zhongji Innolight might be linked to a piece of news. It is reported that the overseas optical module manufacturer AAOI disclosed a large-scale expansion plan in its earnings report and conference call, sparking concerns about the competitive landscape. AAOI's conference call mentioned a target to triple monthly production capacity this year, requiring more automated equipment for expansion. AAOI plans to produce 650,000 units of 800G/1.6T products monthly by year-end and increase capacity tenfold next year, triggering concerns about it potentially capturing market share from domestic manufacturers in the long term. Although some analysts believe the short-term impact is limited and its technology is still dependent on leading domestic companies, this negative rumor still triggered the stock price decline. Looking at the optical module sector overall, three key logics support its medium-to-long-term prosperity. First, capital expenditure upward revisions confirm industry prosperity, and strong cloud revenue growth validates commercial application. CITIC Securities believes that as cloud companies' earnings continue to confirm AI's contribution to business growth, the scale of AI clusters will expand further. Optical interconnection, as a crucial part of cluster networks, will continue to grow rapidly driven by factors like increased GPU-to-module ratios, port speed upgrades, and the transition from copper to optics. The firm holds a long-term bullish view on the optical communication sector. Second, optical interconnection investment continues to increase, and the mass production of CPO is accelerating cluster restructuring. A research report from Kaiyuan Securities indicates that Nvidia's Rubin Ultra architecture focus is shifting to NVL576-level large-scale interconnection, with the system form being 8 x 72-GPU racks interconnected using NPO for cross-rack connections. At the same time, CPO has entered mass production and will be extensively introduced into global AI factories in the second half of the year, potentially accelerating the penetration of optical interconnect technology and driving a structural revaluation of optical communication value. Third, the sector has undergone sufficient adjustment, valuations are low, and position clearing provides a solid foundation for recovery. Guosheng Securities believes that the previously overcrowded trading structure in the optical module sector is improving, with short-term risks having been significantly released. Sufficient churning at the bottom and rebalancing of positions still require time, and the market needs to wait for the gradual accumulation of favorable factors and the progressive repair of market confidence. Besides computing power segments like optical modules, the AI trading theme also warrants attention to AI applications. Drawing parallels with the US SaaS benchmark, Palantir's quarterly report exceeded expectations and surged, indicating that the market is assigning a very high premium to the ability to implement AI applications. The ChiNext AI index aggregates many "software + hardware" combination targets, which, compared to purely hardware communication, stands to benefit more from the dual logic of earnings realization at the application layer and valuation system reshaping. The ChiNext AI ETF (159363) and its off-exchange feeder funds (Class A: 023407, Class C: 023408) focus on optical module CPO leaders while also allocating to AI applications. The underlying index's content of Zhongji Innolight, Eoptolink Technology, and Tianfu Communication is approximately 40%, making it a core flagship for AI computing power. Furthermore, the ChiNext AI ETF (159363) has a latest AUM exceeding 7.4 billion yuan and an average daily turnover over the past six months exceeding 1 billion yuan, leading the other 8 ETFs tracking the same index in terms of scale and liquidity. Source: Shanghai and Shenzhen Stock Exchanges, CSI, CNI, Hang Seng Index Company, etc., as of August 7, 2026. Fund size and weight data as of July 31, 2026. The Medical ETF (512170) has an AUM of 26.045 billion yuan, making it the largest pharmaceutical and medical ETF in the entire market. Reminder: Recent market volatility may be significant, and short-term gains/losses do not predict future performance. Investors must rationally invest based on their own capital status and risk tolerance, paying close attention to position management and risk control. *Institutional views reference sources: Guotai Junan Hai Securities "Is it a rebound or a reversal? Zhang Yidong's latest view: The bottom area has been largely confirmed"; China Merchants Securities 20260802 "Biomedical Industry Weekly: Mid-year season, bullish on the pharmaceutical outlook, recommending innovative drugs, CXO, upstream, and pharmacies"; Goldman Sachs August 6 "Goldman Sachs: Significantly raises AI server PCB and CCL market space forecasts"; China Securities Co., Ltd. July 7 "PCB Industry: AI PCB demand is ramping up, high-end upgrade trend is clear, opening new space for equipment and consumables"; Guojin Securities June 14 "Electronic Industry Research: Strong AI demand, memory price increase trend is expected to continue." CITIC Securities "AI investment return feedback loop is emerging, firmly bullish on the optical communication sector"; Kaiyuan Securities "The time for optical communication allocation has arrived"; Guosheng Securities "Optics: Panic selling, extremes meet." Risk Warning: The Electronics ETF passively tracks the CSI Electronic 50 Index, which was established on December 31, 2008, and published on July 22, 2009. The ChiNext AI ETF passively tracks the ChiNext Artificial Intelligence Index, which was established on December 28, 2018, and published on July 11, 2024. The composition of index constituents is adjusted periodically according to the index compilation rules. Back-tested historical performance does not predict future index performance. The stocks mentioned in the text are only for objective display of index constituents and do not constitute any stock recommendation, nor do they represent the fund manager's or fund's investment direction. Any information appearing in this text (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be responsible for any investment decisions made independently. Furthermore, any views, analyses, and forecasts in this text do not constitute any form of investment advice to readers, nor are they responsible for any direct or indirect losses arising from the use of the content of this text. Investors should carefully read the fund's legal documents such as the "Fund Contract," "Prospectus," and "Fund Product Information Summary" to understand the fund's risk-return characteristics and choose products that match their own risk tolerance. Past performance of the fund does not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. According to the fund manager's assessment, the ChiNext AI ETF, HSCEI Information Technology ETF, SSE STAR Chip ETF, HSCEI Innovative Drug ETF, and HSCEI Medical ETF have a risk rating of R4 (medium-high risk), suitable for investors with aggressive (C4) risk tolerance and above. Other funds mentioned in the text have a risk rating of R3 (medium risk), suitable for investors with balanced (C3) risk tolerance and above. The suitability matching opinion should be based on the sales institution. Sales institutions (including the fund manager's direct sales institutions and other sales institutions) conduct risk assessments on the above funds based on relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. The suitability opinions of various sales institutions may not be consistent, and the fund product risk level evaluation results issued by fund sales institutions shall not be lower than the risk level evaluation results made by the fund manager. The risk-return characteristics and risk levels in the fund contract may differ due to different consideration factors. Investors should understand the risk-return situation of the fund, carefully choose fund products based on their own investment objectives, duration, investment experience, and risk tolerance, and bear the risks themselves. The registration of the above funds by the China Securities Regulatory Commission does not indicate that it makes a substantive judgment or guarantee regarding the fund's investment value, market prospects, or returns. Fund investment requires caution. MACD golden cross signal formed, these stocks are showing good momentum!