Technology sector leaders showed a mixed performance during early trading on July 15th. The Huabao Technology ETF (515000), characterized by its "hard tech beta + quality leader alpha" attributes, saw its on-exchange price rebound after an initial dip, with its decline now narrowing to around 1%. The fund has experienced concentrated capital inflows over the past 10 days, accumulating a net inflow of approximately 10 billion yuan.

Constituent stocks presented a stark contrast. Stocks in the optical communication sector strengthened, with Changfei Optical Fiber hitting the daily limit-up. The innovative drug and CXO segments were active, with Pharmaron rising over 9%, and Jiangsu Hengrui Pharmaceuticals and Mindray Bio-Medical Electronics both gaining over 4%. Conversely, memory chip stocks generally trended lower, with Demingli locked at the limit-down and Biwin Storage plunging over 11%, while Jiangbolong fell more than 5%.

Analysis of the Optical Communication Sector

In the optical communication sector, Changfei Optical Fiber announced that it expects its first-half net profit to increase by 711% to 914% year-over-year. Guosheng Securities believes the current period represents a crucial window for investing in leading optical communication companies. Firstly, capital expenditure (CapEx) from major North American Cloud Service Providers (CSPs) is expected to continue rising. Secondly, the pricing dynamics in optical communication are healthier and more growth-oriented compared to traditional cyclical commodities. Thirdly, optical communication offers strong short-to-medium-term earnings certainty, positioning it as a solid cornerstone for stability within the technology sector.

Insights on the Innovative Drug Sector

Regarding the innovative drug sector, the domestic industry has recently welcomed multiple, comprehensive policy and industrial tailwinds, signaling a clear recovery in sector sentiment. In the first half of this year, overseas licensing deals for China's innovative drugs were exceptionally active, reaching a new historical high. The latest statistics show that as of June 30th, China's innovative drug sector completed 81 out-licensing transactions with a total value of approximately 110 billion US dollars, already reaching 80% of the total transaction value for the entire year of 2025.

Investing in Technology Leaders

For exposure to the technology bull market, focus on the leaders! The Huabao Technology ETF (515000) and its feeder funds (Feeder A: 007873, Feeder C: 007874) select 50 large-scale, high-market-share, strong-growth, and high-R&D-investment listed companies from technology sectors such as electronics, computers, communications, and biotechnology within the Shanghai and Shenzhen markets. This portfolio represents the core assets of A-share technology leaders, combining the attributes of "hard tech beta" and "excess alpha from quality leaders."

Looking at the CSI secondary industry distribution, the CSI Technology Leaders Index has a combined weight of approximately 90% in semiconductors, electronics, and communication equipment & technical services, indicating high purity. This means the index holdings are almost entirely focused on hardcore technology areas, closely aligning with current market themes like the AI computing chain, semiconductor localization, and optical communication. The top ten constituents aggregate leaders from various sub-sectors including optical modules, semiconductor equipment, memory chips, PCBs, and innovative drugs.

Performance Overview

In terms of performance, the on-exchange price of Huabao Technology ETF (515000) has repeatedly hit new highs this year, with its underlying index showing strong momentum, highlighting its ongoing allocation value. As of June 30, 2026, the Technology Leaders Index has surged 153% over the past year, significantly outperforming popular tech indices like the STAR 50 over the same period. It can be seen as a "Technology Broad-based Pro Max" version, serving as a high-quality tool for gaining exposure to the technology theme.

Note: Huabao Technology ETF passively tracks the CSI Technology Leaders Index. The index base date is June 29, 2012, and its release date is March 20, 2019. The annual historical returns for the CSI Technology Leaders Index from 2021 to 2025 were: -3.92%, -34.84%, 0.81%, 11.50%, and 51.54% respectively, with corresponding annualized volatilities of 21.46%, 26.5%, 19.83%, 36.36%, and 27.34%. The index constituents are adjusted according to its compilation rules, and its backtested historical performance does not indicate future index performance.

Data source: Shanghai and Shenzhen Stock Exchanges, etc. Note: "First domestic" refers to the first ETF tracking the CSI Technology Leaders Index.

ETF Fee Information: When investors subscribe for or redeem fund shares, the subscription/redemption agent may charge a commission not exceeding 0.5%. On-exchange trading fees are subject to the actual charges by securities firms, and no sales service fee is charged.

Feeder Fund Fee Information: For Huabao Technology ETF Feeder Fund A, the subscription fee is 1.00% for amounts below 1 million yuan, 0.60% for amounts between 1 million yuan (inclusive) and 2 million yuan, and a flat fee of 1,000 yuan per transaction for amounts of 2 million yuan (inclusive) and above. The redemption fee is 1.50% for holdings under 7 days, 0.50% for holdings between 7 days (inclusive) and 180 days, and 0.00% for holdings of 180 days (inclusive) and above. No sales service fee is charged. Huabao Technology ETF Feeder Fund C charges no subscription fee. The redemption fee is 1.50% for holdings under 7 days and 0.00% for holdings of 7 days (inclusive) and above. The sales service fee is 0.40% per annum. The ETF subscription/redemption agent may charge a commission not exceeding 0.5%. On-exchange trading fees are subject to the actual charges by securities firms.

Risk Warning: Huabao Technology ETF passively tracks the CSI Technology Leaders Index. The index base date is June 29, 2012, and its release date is March 20, 2019. The index constituents are adjusted according to its compilation rules, and its backtested historical performance does not indicate future index performance. The index constituents mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading trends of any fund managed by the fund manager. The fund manager assesses this fund's risk level as R3 - Medium Risk, suitable for Balanced (C3) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to readers, and no responsibility is assumed for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not guarantee its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Invest in funds with caution.