A significant conference announcement was released, and the A-shares surged! On October 24, the Shanghai Composite Index rose by 0.71% to 3,950.31 points, reaching a ten-year high! Technology stocks rebounded, with the ChiNext Index soaring 3.57% and the Leading Technology ETF (588330) skyrocketing 4.9%. Market sentiment quickly escalated, with a trading volume of 1.99 trillion yuan.
According to reports, the "14th Five-Year" plan emphasizes placing new quality productivity in a more central strategic position, with two main objectives: significantly improving "technology independence and self-strengthening" and reinforcing the "national security barrier," clearly prioritizing "seizing the high ground in technology development."
The AI sector exploded, with the three major optical module companies leading the charge. Zhongji Xuchuang surged over 12%, reaching new highs. The "AI Twins" — the High "Light" ChiNext Artificial Intelligence ETF (159363) and the Sci-Tech Innovation Artificial Intelligence ETF (589520) saw substantial increases of 5.49% and 4.32%, respectively. The Ministry of Science and Technology has stated it will fully implement the "AI+" initiative to empower various industries.
As an important direction for the development of new quality productivity, the defense and military industry will also launch initiatives. The announcement features "Building a Strong Space Nation" for the first time, leading to a surge in commercial aerospace concepts. Aerospace Intelligence Equipment saw a 20% limit-up! The popular Defense and Military ETF (512810) rose 2.8% intraday and closed above its two moving averages.
The Hong Kong stock market resonated with this trend, with the Hang Seng Index and the Hang Seng Tech Index finishing up 0.74% and 1.82%, respectively. The Hong Kong Large Cap 30 ETF (520560), which focuses on "Technology + Dividends," experienced consecutive gains in premiums. The "Double Giants" of Hong Kong technology — the 100 Billion Hong Kong Dollar Internet ETF (513770) and the High Elasticity Hong Kong Stock Connect Innovative Drug ETF (520880) both closed in the green, retaining substantial premiums, after recent inflows of substantial funds.
Looking ahead, what clues do the 14th Five-Year Plan suggestions reveal? Galaxy Securities recommends paying attention to the following thematic investment opportunities: 1. New Quality Productivity: Technology enterprises that align with national strategies and possess genuine technological barriers will be an essential investment theme in A-shares. 2. Consumer Sector: As a vital part of domestic demand, consumption is crucial for stabilizing the economy. 3. Infrastructure: Focus on the promotion of significant regional strategic projects, particularly beneficial to construction, building materials, and machinery sectors along the industrial chain. 4. Anti-Competition: For a long time, governing disorderly competition and standardizing local investment attraction represents a hurdle to achieving a unified national market. 5. Real Estate Chain: The core framework for high-quality development is expected to drive the real estate market toward improved quality and institutional innovation.
【Understanding the Hotspots of ETFs】 Next, we will highlight the transactions and fundamentals of several sectors including the ChiNext Artificial Intelligence, Leading Technology, and Defense and Military Industries. 1. Computing Power Soars! ChiNext Artificial Intelligence Index Rises Nearly 14% Weekly, With Optical Module Giants Reaching New Highs! Is the "W" pattern in place, and will 159363 break past its previous high? The computing power hardware surged in the afternoon, with the ChiNext Artificial Intelligence gaining more than 5% in a single day! The three major optical module companies led the charge, with Zhongji Xuchuang rising over 12% to achieve new highs. Xin Yisheng increased over 7%, and Tianfu Communication rose over 6%. Other popular stocks included Changxin Bochuang up over 11%, and Beijing Junzheng, Taicheng Guang, and Lian Te Technology each rose over 3%.
Among popular ETFs, the largest and most liquid ChiNext Artificial Intelligence ETF (159363) experienced a one-day surge of 5.49% with a daily trading volume of 890 million yuan. Technically, from its previous high to the current point, 159363 has formed a "W" pattern, setting a stage for upward trends, and may break its previous high of 0.922 yuan. The MACD shows the fast line (DIF) is approaching the slow line (DEA), suggesting an upward breakthrough creating a MACD golden cross.
From a weekly perspective, the ChiNext Artificial Intelligence Index accumulated an increase of 13.82% weekly, outperforming the CS Artificial Intelligence and Sci-Tech AI indices during the same period, and also surpassing the annual gains of similar thematic indices. Looking ahead, under policy catalysis, AI, being a vital driver of the current technological revolution, is expected to seize new developmental opportunities, and the AI track is likely to continue leading the A-share market! Additionally, with accelerated domestic and international computing infrastructure developments, the ChiNext Artificial Intelligence ETF, heavily invested in optical modules, is expected to perform persistently!
Note: The ChiNext Artificial Intelligence ETF (159363) passively tracks the ChiNext Artificial Intelligence Index, which was established on December 28, 2018, and released on July 11, 2024. The annual growth rates of the ChiNext Artificial Intelligence Index from 2020 to 2024 are 20.1%, 17.57%, -34.52%, 47.83%, and 38.44%, with component stock adjustments according to the index compilation rules, and historical performance does not indicate future results.
On the policy front, technological independence has become one of the key objectives for the next five years. AI is regarded as the Fourth Industrial Revolution, and its significance in this wave of technological advancement presents new growth prospects. At a recent news conference, the Ministry of Science and Technology highlighted the need to accelerate innovations in AI and other intelligent technologies, enhancing the effective supply of computing power, algorithms, and data.
Dongxing Securities believes the AI sector is currently at a stage of convergence regarding policies, technology, and demand, supported by top-down policies and potential funding facilitated by the "AI+" initiative. The performance of domestic chip makers and cloud computing leaders is gradually validating their results, while continued capital expenditures from large enterprises elevate industry development certainty. The sector's vibrancy still has upward potential, maintaining a dominating position in technology investments.
Focusing on computing power with optical modules at its core, Huatai Securities recommends keeping an eye on the performance of AI computing power chains. This firm predicts that demand for overseas 800G optical modules will remain strong in Q3, with leading businesses like Zhongji Xuchuang and Xin Yisheng expected to sustain year-on-year high growth, and the additional demand from 1.6T optical modules holds promise for performance boosts in related sectors like optical modules and optical engines.
Where to find the "Optical Module ETF"? They recommend focusing on the first ChiNext Artificial Intelligence ETF (159363) and connection funds (Class A: 023407, Class C: 023408), which is heavily invested in the leading optical module firm "Yizhongtian," comprising over 51% of its holdings. In terms of asset allocation, over 70% is committed to computing power, and more than 20% is allocated to AI applications, effectively capturing the AI thematic market. (As of September 30, 2025)
In comparison with similar funds, as of October 23, the ChiNext Artificial Intelligence ETF (159363) has a current scale exceeding 3.5 billion yuan, with an average daily trading volume of over 800 million yuan in the past month, leading among the 7 ETFs tracking the ChiNext Artificial Intelligence Index in terms of scale and turnover.
2. Skyrocketing 4.9%! Fully Positioned in New Quality Productivity — Leading Technology ETF Takes the Lead in Broad-Based Performance! Cambricon's stock price surpasses Maotai, topping the A-share capital inflow and trading list. Technology has become the driving force of the market, with the ChiNext and Sci-Tech boards soaring together. The broad-based Leading Technology ETF (588330) saw a robust gain throughout the day, surging 4.9%, maintaining above the 20-day moving average, and a total trading volume of 105 million yuan, increasing by 128% from the previous day, indicating a strengthening short-term trend!
In terms of sub-sectors, semiconductors and computing power have shown remarkable growth. In the semiconductor sector, storage chip leader Jiangbolong led with a surge of over 16%. Meanwhile, computing chip leader Cambricon saw a rise of over 9%, positioning it at the top of the A-share capital inflow list. Its stock price has returned above 1,500 yuan, surpassing Kweichow Moutai. The computing power industry chain, including optical modules and PCBs, has also performed strongly, with leading optical module company Zhongji Xuchuang rising over 12% to new highs, while PCB leader Shenghong Technology and photovoltaic leader Sunshine Power each increased over 7%.
On the news front, the significant meeting has concluded, and the key signals conveyed by the new five-year plan have drawn market attention. The National Development and Reform Commission pointed out that there will be a re-creation of a high-tech industry in China over the next ten years. The Ministry of Science and Technology proposed implementing a series of significant national technological tasks based on national strategic needs. They are committed to reinforcing the effective supply of computing capacity, algorithms, and data, and to fully executing the Artificial Intelligence + plan.
CITIC Construction Investment emphasized that "new quality productivity" was included in the conference planning framework for the first time, highlighting the importance of quality and efficiency in economic development. Zheshang Securities pointed out that amid unprecedented shifts in the global landscape, seizing new technological revolutions and industrial transformation opportunities is also at the core of the Sino-U.S. competition. Other related policies will revolve around the core concept of new quality productivity.
Shenwan Hongyuan stated that effective breakthroughs in the A-shares depend on technological leadership. Guosen Securities commented that as the market enters a rapid growth phase, the leading sectors are often those in the application fields of leading industries, like "Internet+" in the first half of 2015 and new energy vehicles in 2021. Looking ahead to the next year, the firm remains optimistic about the technology mainline.
In terms of investment tools, they recommend the hard technology broad-based Leading Technology ETF (588330) and its connection funds (Class A: 013317 / Class C: 013318), which select the largest 50 strategic emerging industry companies listed from the ChiNext and Sci-Tech Innovation boards as its index sample, gathering leading high-growth stocks across popular themes, including new energy, photovoltaics, semiconductors, optical modules, and medical devices. Amid the backdrop of global technological competition, the emphasis on technological independence and controllable supply chains has reached new heights, with the "Chinese version of NASDAQ" on the horizon.
3. Strong Space Nation, New Focus in the 14th Five-Year Plan! Commercial aerospace concepts taking off, many stocks hitting the limit! The Defense and Military ETF (512810) rose over 2%, recovering two moving averages. The significant conference announcement first introduced the term "Strong Space Nation," and on October 24, commercial aerospace concepts exploded, rapidly driving the defense and military sector upward! The popular Defense and Military ETF (512810) reached as high as 2.8% intraday and closed up 2.36%, recovering both the five-day and ten-day moving averages, indicating a turning point with a total trading volume exceeding 98.99 million yuan.
Out of the 79 constituent stocks in the Defense and Military ETF (512810), 75 saw gains, with commercial aerospace concept stocks such as Aerospace Intelligence Equipment hitting the daily limit. Hongda Electronics surged over 10%, while both China Satellite and Aerospace Science and Technology hit the daily limit with increases of 10%.
The high-level clarification of "Strong Space Nation" serves as a robust market catalyst, signaling that the aerospace industry will receive more policy and resource support, ushering in significant development opportunities in fields like missiles, rockets, and satellites. Additionally, the meeting outlined objectives to achieve the 100-year military goal, aiming for high-quality advancement in defense and military modernization.
Dongfang Securities noted that stock prices in the defense and military sector have stabilized over the past month. Following the release of the 14th Five-Year Plan, the new phase of equipment construction planning is expected to be clarified, benefiting from the symbiotic external and internal demand dynamics in the defense and military sector.
Huafu Securities also highlighted that given the anticipated strong demand recovery and certainty in the defense and military sector for 2025-2026, the current timing is significant for high allocation in this area.
【Investing in Defense and Military, Choose "512810"】 The code contains "81" for the Defense and Military ETF (512810), which simultaneously serves as a financing and mutual connect target, being an efficient tool for investing in core assets in this sector, covering themes like "Commercial Aerospace, Low-Altitude Economy, Controlled Nuclear Fusion, Large Aircraft, Deep-Sea Technology, and Military AI."
Data Source: Shanghai and Shenzhen Stock Exchanges, etc. Note: "First in the Market" refers to the first ETF tracking the ChiNext Artificial Intelligence Index.
Risk Disclaimer: The ChiNext Artificial Intelligence ETF passively tracks the ChiNext Artificial Intelligence Index, which was established on December 28, 2018, and released on July 11, 2024. The Defense and Military ETF passively tracks the CSI Military Index, which was established on December 31, 2004, and published on December 26, 2013. The Leading Technology ETF and its connection funds passively track the CSI Sci-tech Innovation and Entrepreneurial 50 Index, which was established on December 31, 2019, and published on June 1, 2021. The component stock composition is adjusted according to index preparation rules, and back-tested historical performance does not predict future performance. The stocks mentioned in this article are merely components of the index, listed for objective illustration and are not recommendations for any individual stock, nor do they represent the investment direction of the fund manager. Any information (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any expressions) presented in this article is for reference only. Investors must be responsible for independent investment decisions. Moreover, the views, analyses, and predictions in this article do not constitute any investment advice and the company does not assume responsibility for any direct or indirect losses arising from using the content. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Information Sheet," and other legal documents of the fund to understand the risk and return features, choosing products that match their risk tolerance. Historical performance of funds does not predict future results, and performance of other funds managed by the fund manager does not guarantee the performance of any specific fund. According to the fund manager's evaluation, the risk levels of the Hong Kong Stock Connect Innovative Drug ETF, Hong Kong Large Cap 30 ETF (520560), Hong Kong Internet ETF, ChiNext Artificial Intelligence ETF, and Sci-Tech Artificial Intelligence ETF are rated R4 - medium to high risk, suitable for aggressive investors (C4) and above, while the risk levels of the funds mentioned in the article are all rated R3 - medium risk, suitable for balanced investors (C3) and above. Please consult your sales institution for suitability matching. Sales institutions (including fund managers' direct selling institutions and other sales agencies) evaluate the risk of the above funds based on relevant laws and regulations. Investors should pay attention to the suitability opinions issued by fund managers. The opinions may differ among sales institutions, and the risk ratings proposed by sales institutions should not be lower than those made by the fund manager. Differences may exist in fund risk-return characteristics and risk ratings due to various considerations outlined in the fund contract. Investors should understand the risk-return conditions of the funds, cautiously selecting products that align with their investment objectives, timeline, experience, and risk tolerance to bear risks independently. Approval from the China Securities Regulatory Commission for the above funds does not imply any substantive judgment or guarantee of the investments' value, market prospects, or returns. Investment in funds requires caution.