Today (October 21), the ChiNext and STAR Market both saw significant gains, with the broad-based hard technology Double Innovation Leader ETF (588330) rising over 3.5% during intraday trading, currently up 3.24%, having reclaimed the 10-day moving average.
Among the component stocks, the three major players in the optical module sector led the surge, with Zhongji Innolight increasing by over 10%, New易盛 up more than 8%, and Tianfu Communication climbing more than 5%. In the consumer electronics sector, leading company Lansi Technology rose over 5%, while photovoltaic leader JinkoSolar gained over 4%. Weighty stocks like CATL and SMIC both increased more than 3%.
In terms of news, CATL reported Q3 revenue surpassing 100 billion yuan and a net profit growth of over 40%. Company executives stated that the energy storage production lines are operating at high capacity. For the third quarter, CATL achieved revenue of 104.186 billion yuan, up 12.9% year-on-year, and a net profit attributable to shareholders of 18.549 billion yuan, marking a 41.21% increase year-on-year. During the earnings conference, executives noted that the current capacity utilization rate is "very high," and the company is actively advancing new capacity construction, with robust energy storage demand both domestically and internationally, and high growth momentum expected for both power batteries and energy storage in the coming year.
On the policy front, six departments, including the National Development and Reform Commission and the National Energy Administration, have issued the "Three-Year Doubling Action Plan for Electric Vehicle Charging Infrastructure Service Capacity (2025-2027)." Citic Securities opines that the policy goals are relatively moderate and cautious, solidifying future infrastructure construction goals over the next two years, providing a pilot and support for various new operational ecosystems. They suggest keeping an eye on leading operators and equipment vendors.
In the optical module sector, the CPO concept remains strong, with New易盛 increasing by over 300% year-to-date and Zhongji Innolight up more than 227%. Industrial and Information Technology Ministry recently issued a notice regarding the "Millisecond Calculation" initiative. Industry insiders note that optical communication technology is becoming a key path to overcoming computing power bottlenecks due to its advantages of ultra-low latency, high bandwidth, and protocol transparency.
Shenwan Hongyuan anticipates that the technology-led market trend will continue into the fourth quarter. Last week's performance showed that cyclical and value trends cannot temporarily lead the overall index further upward; ultimately, the effective breakthrough in A-shares depends on technology leadership. Following a short-term adjustment, they expect technology-led rallies in the fourth quarter, with spring 2026 potentially marking a seasonal peak, though likely not the peak for the entire year or the end of the current bull market, which still has depth and room for further development as conditions for a comprehensive bull market may become more apparent over time.
Why lay out technology trends through broad-based indices? 1. Diversify risks and avoid putting all eggs in one basket: The technology sector comprises many subdivisions (such as semiconductors, AI, new energy, innovative pharmaceuticals), with rapid technological iterations and substantial stock volatility. Investing in a broad index allows for effective smoothing of risks associated with specific lanes or individual stocks. 2. Seize sector rotation and avoid missing opportunities: There is also rotation within technology trends. A broad-based index covering multiple technological subdivisions helps investors capture overall trends during market rotations and avoid missing out due to wrong bets on specific lanes. 3. Policy-driven, capitalize on upward beta of the industry: Guotai Junan's report indicates that the recent uptick in the technology growth market is attributable to shifts in policy and changing expectations, suggesting that the specific implementation of policies will continue to drive momentum in this trend, recommending timely investments in broad-based indices that represent overall technology trends to capture upward beta in the industry.
Tap into new productivity, invest in China's version of the "NASDAQ." Focus on the hard technology broad-based Double Innovation Leader ETF (588330) and its off-market connect funds (Class A: 013317 / Class C: 013318) that feature three main characteristics: 1. Cross-market multifaceted allocation, 100% strategically emerging: The target index selects 50 larger market-cap stocks from the STAR Market and ChiNext as index samples, gathering leading growth companies, including hot themes like new energy, semiconductors, and medical devices. 2. Growth-oriented and "combat-ready" configuration for top Chinese tech: In the global competition in technology, the relevance of self-reliance and self-control in supply chains has reached a new height, heralding the emergence of "China's version of NASDAQ." 3. High-elasticity tool for capturing technology trends, low-threshold deployment for breakthrough potential: The target index permits a 20% limit on price fluctuations, offering greater volatility and the capability to act as a "rebound pioneer." Compared to direct investments in STAR Market and ChiNext stocks, ETF investments have a relatively lower entry barrier, allowing investments to start at less than 100 yuan at current prices.
Risk Warning: The Double Innovation Leader ETF and its connect funds passively track the CSI Strategic Emerging Industries (STAR Market) 50 Index, which had its base date as of December 31, 2019, and was launched on June 1, 2021. The composition of the index is subject to adjustments per its compilation rules, and past performance does not predict future performance. The individual stock descriptions mentioned in this article are for display purposes only and do not constitute any investment advice and do not reflect any information about holdings or trading directions of any funds managed by the management. The fund manager assesses the risk level of the Double Innovation Leader ETF as R4 - medium to high risk, suitable for aggressive investors (C4) and above, primed for suitability evaluation according to sales institutions. Any information mentioned in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors are responsible for their own investment decisions. Additionally, any opinions, analyses, and forecasts in this article do not constitute any form of investment advice to readers and shall not be held liable for direct or indirect losses caused by the use of this article's content. Investment in funds carries risks, and past performance does not guarantee future returns, nor do the performance of other funds managed by the fund manager constitute assurance of fund performance; hence, investors should exercise caution when investing.
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