On November 9, AI hardware broadly stabilized and rebounded, with the benchmark STAR Chip Index of the low-fee HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) rising nearly 2% during intraday trading.

Cambricon gained 6%, while Yuanjie Semiconductor, Verisilicon Microelectronics(Shanghai)Co.,Ltd. (688521), MetaX Integrated Circuits-U, and Moore Threads-U led the gains.

On the news front, Verisilicon Microelectronics(Shanghai)Co.,Ltd. (688521) disclosed its latest monthly operating data. As of the end of September 2026, the company's order backlog reached 18.569 billion yuan, up 265.90% from the end of the prior year and a further 49.16% increase from the end of the second quarter, marking 12 consecutive quarters of maintaining a high level. The company's continued order conversion will support sustained revenue growth.

Additionally, Hua Hong Semiconductor's latest results showed revenue of 18.611 billion yuan for the first three quarters of 2026, up 14.06% year-on-year, with net profit attributable to shareholders of 1.603 billion yuan, up 138.23% year-on-year. Third-quarter revenue alone reached 6.706 billion yuan, setting another record high.

CITIC SEC pointed out that the recent tech stock correction is more a rebalancing of valuations and positioning driven by changes in long-term industry narratives and expectations. Currently, computing power supply and demand remain tight, industry profit trends remain strong, and overall sector valuations have already fallen to historic lows.

Data shows that as of the end of October, the price-to-earnings ratio (TTM) of the STAR Chip Index had returned to 90.3 times, sitting at a relatively low level of approximately the 30th percentile since the index's launch.

CITIC SEC expects that by 2027, domestic AI chip shipments could exceed 5 million units, further raising the localization rate. Driven by material cost increases and performance improvements, leading new product prices are expected to rise by more than 20%, helping maintain high profitability. Meanwhile, domestic memory manufacturers continue to advance technology and expand capacity, which will also drive the industry's prosperity further upward.

For investors, selecting specific segments within the chip sector is highly challenging. A simpler approach is to gain one-click exposure through an index covering the entire chip industry chain. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) passively tracks the STAR Chip Index, covering the full chip industry chain with heavy allocations to core segments such as AI chips, memory, and semiconductor equipment and materials. It effectively maps the industry development trends driven by the continuous upgrading of AI computing infrastructure, offering strong offensive characteristics and 20CM high elasticity. Off-exchange investors can consider the feeder fund 021225.

Note: The benchmark indices for memory content, Changxin Technology content, and semiconductor materials and equipment content are the Memory Chip Index (980138.CNI), the Changxin Industry Chain Index (8841935.WI), and the Semiconductor Materials and Equipment Index (931743.CSI), respectively, as of September 18, 2026. Public data shows that the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) has a management fee of 0.3%, a custody fee of 0.08%, and a combined fee of 0.38%, which is relatively low among ETFs tracking the same benchmark index. Data sources: Shanghai and Shenzhen Stock Exchanges, Wind, etc. Institutional view source: CITIC SEC report dated November 9, 2026, titled "Tech Stock Valuations Have Fallen to Lows, Seize New Opportunities from Technological Breakthroughs and Application Diffusion." ETF fee disclosure: When investors subscribe to or redeem fund shares, subscription and redemption agents may charge a commission of no more than 0.5%, which includes related fees charged by stock exchanges and registration institutions. Feeder fund fee disclosure: Huabao STAR Chip ETF Feeder A subscription fee (front-end) is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.2% for 1 million yuan (inclusive) to 2 million yuan, and 0.5% for amounts below 1 million yuan. The redemption fee is 1.5% for holding periods of fewer than 7 days and 0% for holding periods of 7 days (inclusive) or more. Huabao STAR Chip ETF Feeder C charges no subscription fee, with a redemption fee of 1.5% for holding periods of fewer than 7 days and 0% for holding periods of 7 days (inclusive) or more, and a sales service fee of 0.2%. Risk disclosure: The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) and its feeder funds passively track the STAR Chip Index, which has a base date of December 31, 2019, and a launch date of June 13, 2022. The STAR Chip Index's returns over the past 5 complete calendar years were 6.87% in 2021, -33.69% in 2022, 7.26% in 2023, 34.52% in 2024, and 61.33% in 2025. The STAR Chip Index's volatility over the past 5 complete calendar years was 34.32% in 2021, 36.60% in 2022, 28.64% in 2023, 44.67% in 2024, and 34.34% in 2025. The constituent stocks of the index are adjusted in a timely manner according to the index compilation rules, and back-tested historical performance does not predict future index performance. This product is issued and managed by Huabao Fund, and distribution agencies do not assume responsibility for investment, redemption, or risk management of the product. Investors should carefully read fund legal documents such as the Fund Contract, Prospectus, and Fund Product Information Summary to understand the risk and return characteristics of the fund and choose products suitable for their own risk tolerance. The fund's risk rating assessed by the fund manager is R4-medium-high risk, suitable for investors with suitability ratings of C4 and above. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Past performance of the fund does not predict its future performance. Funds involve risk, and investment requires caution! Distribution institutions (including the fund manager's direct sales channel and other distribution institutions) conduct risk assessments of this fund in accordance with relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions among distribution institutions are not necessarily consistent, and the risk rating evaluation results issued by fund distribution institutions shall not be lower than the risk rating evaluation results made by the fund manager. Differences exist between the fund's risk-return characteristics in the fund contract and the fund risk rating due to different factors considered. Investors should understand the fund's risk and return situation and carefully select fund products based on their own investment objectives, time horizon, investment experience, and risk tolerance, and bear risks themselves. The registration of this fund by the China Securities Regulatory Commission does not indicate that it makes any substantive judgment or guarantee regarding the fund's investment value, market prospects, or returns. Funds involve risk, and investment requires caution.