The rebound market showcases its bounce power! The Sci-Tech Innovation Artificial Intelligence ETF Huabao (589520) gaps up and surges over 5.3%.

April 8, as tensions between the United States and Iran eased, the Huabao Science and Innovation Artificial Intelligence ETF focused on China’s domestic AI industry chain (589520) surged more than 5% at the open, jumping over the previous day’s close. In recent days, capital has already moved in ahead of time; over the past five trading days, the Huabao Science and Innovation Artificial Intelligence ETF (589520) has attracted RMB 16.85 million in net inflows.

CITIC Securities believes that driven by AI demand, memory is still in the early-to-middle stage of a super high-demand cycle, and the tight supply-and-demand situation is expected to last at least until 2027. China Merchants Securities noted that looking ahead to April, after external shocks (the Middle East geopolitical situation) fade, the market focus will shift to sectors with high growth in first-quarter report performance. The semiconductor industry chain is expected to become one of the sectors with the most impressive earnings growth rate performance.

On fundamentals, as of April 6, among the constituent stocks of the Huabao Science and Innovation Artificial Intelligence ETF (589520), 14 companies have already released their 2025 annual reports. Of those, 11 listed companies are profitable, and 10 companies saw their net profit attributable to shareholders grow year over year by double digits. Cambricon’s net profit attributable to shareholders rose 555% year over year, ranking first. Dongxing Securities believes that the AI industry is currently in a three-dimensional convergence stage of policy, technology, and demand. China’s domestic chip and cloud computing leaders are gradually validating their performance, while large-cap enterprises’ ongoing CapEx investment continues to boost industry development certainty—leaving room for further upside in industry sentiment.

The Huabao Science and Innovation Artificial Intelligence ETF (589520) and its linked fund (024560) focus on China’s domestic AI industry chain. The constituent stocks include leading domestic GPU companies (such as Cambricon), leading domestic ASIC companies (such as SiFive? wait—actually this is “芯原股份”), leading AI application companies (such as Kingsoft Office). Semiconductor sector weights account for nearly half, giving it strong offensiveness; the software sector weight exceeds 30%, and it is expected to benefit from an AI application “catch-up” rally. In addition, this ETF is a margin trading and short-selling (Rongzi Rongquan) eligible product—an efficient tool for one-click allocation to domestic computing power.

The Daily Economic News