--- title: "Funds are flocking into electronics! Semiconductor + PCB + glass substrates are blooming in multiple areas, Hwabao WP CSI Electronic ETF and Hwabao WP SSE STAR Chip ETF have risen for three consecutive days against the market trend! Military industry has stopped declining and is warming up" type: "News" locale: "en" url: "https://longbridge.com/en/news/288693704.md" description: "On June 4th, the A-shares experienced fluctuations and adjustments, with the electronics sector leading the market against the trend, and significant capital inflows into sub-sectors such as semiconductors and PCBs. The Hwabao WP CSI Electronic ETF and the Hwabao WP SSE STAR Chip ETF have risen for three consecutive days, and the military industry sector has also stopped declining and warmed up. Galaxy Securities looks forward to the future market, believing that capital is expected to flow back into high-growth sectors, and recommends focusing on technology leaders supported by performance and defensive energy and resource sectors" datetime: "2026-06-04T09:10:40.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288693704.md) - [en](https://longbridge.com/en/news/288693704.md) - [zh-HK](https://longbridge.com/zh-HK/news/288693704.md) generator: "portal-rs" --- # Funds are flocking into electronics! Semiconductor + PCB + glass substrates are blooming in multiple areas, Hwabao WP CSI Electronic ETF and Hwabao WP SSE STAR Chip ETF have risen for three consecutive days against the market trend! Military industry has stopped declining and is warming up On Thursday (June 4), **A-shares experienced volatile adjustments**, with all three major indices collectively declining. The trading volume in the two markets shrank to 2.75 trillion yuan, with over 4,100 stocks in the entire market falling. On the market, the electronics industry stood out, with funds pouring in. **Semiconductors, PCBs, and glass substrates** saw multiple points of growth in their respective segments. The core leader of the sector—**Electronic ETF Hwabao (515260)** rose against the trend, gaining 2.44% for a successful three-day increase! The **Sci-Tech Chip ETF Hwabao (589190)**, which focuses on the chip industry, also rose by 1.7%, marking its **third consecutive increase.** The sentiment in the electronics sector also spread to the military industry, with **military electronics warming up against the trend**. The core assets of the military industry—**Military ETF Hwabao (512810)** recorded two consecutive days of gains, stopping the decline and warming up. In addition, the technology leader—**Technology ETF Hwabao (515000)** rose nearly 1% in the market, closing at a **new high since its listing nearly 7 years ago!** Looking ahead, Galaxy Securities stated that **funds in June are expected to flow back to high-growth sectors.** On one hand, **technology growth remains the main line, and leading companies with performance support will continue to benefit**, suggesting attention to the forward-looking performance of mid-year reports. On the other hand, sectors related to energy security, traditional energy tracks such as **coal, banks, and public utilities defensive sectors**, as well as chemicals and non-ferrous metals, which have **defensive attributes and cyclical resource characteristics**, can be configured as a defensive strategy.\* **【ETF All You Need to Know Hotspot Review】Focus on discussing the trading and fundamentals of themes in industries such as electronics, sci-tech chips, and military industry.** **1\. PCB concept surged, Huadian Technology and Dongshan Precision hit new highs! Electronic ETF Hwabao (515260) rose nearly 3% at its peak, with a surge in premium at the close.** The **electronics sector** led all industries against the trend, with **net inflow of main funds** reaching **53.5 billion yuan** throughout the day, making it the top sector in terms of capital absorption among the 31 first-level industries of Shenwan! **BOE A** saw a net inflow of 5.5 billion yuan, **topping the A-share capital absorption list**. In terms of popular ETFs, the **Electronic ETF Hwabao (515260)**, which aggregates the core leaders of the electronics sector, saw its price **rise nearly 3% at its peak**, closing up 2.44%, achieving three consecutive daily gains! Notably, the premium of this ETF surged at the close, with a closing premium rate of 0.30%, indicating stronger buying power! In fact, in the previous 10 trading days, this ETF accumulated **1.61 billion yuan** in capital absorption In terms of constituent stocks, optical and optoelectronic leader **BOE A and Sanan Optoelectronics hit the daily limit**; PCB leader **Unimicron Technology touched the limit during trading**, closing up over 8%, and Dongshan Precision rose over 6%, both **reaching historical highs**; semiconductor leader **Shanghai Silicon Industry led with over 14% increase**, and Zhaoyi Innovation rose more than 7%. On the news front, the electronics sector is frequently benefiting, and looking at the sub-sectors: **1\. In terms of PCB,** IDC predicts that global AI server shipments will exceed 2 million units by 2026, **directly driving high-end PCB demand growth by over 110%**, with the **PCB value of a single AI server** reaching **nearly 10 times** that of a regular server. China Merchants Securities believes that the AI PCB supply chain is accelerating its order pace, with orders continuously being released, and **performance is expected to maintain a high-speed growth trend on a quarter-on-quarter basis**. The PCB supply chain is undergoing **innovative upgrades** from multiple dimensions such as **new materials and new technologies**, **which is expected to open up long-term growth space**. **2\. In terms of the Apple supply chain,** Apple's annual **Worldwide Developers Conference (WWDC)** will open on June 8 local time, and products such as the **foldable iPhone** are expected to debut in Apple's fall product line. Lens Technology, BOE A, Huagong Technology, Lingyi iTech, and TCL Technology are all **flexible screen (foldable screen) concept stocks**. Data shows that as of the end of May, the electronic ETF Hwabao (515260) has a constituent stock weight of **49.34%** in the **Apple supply chain** index. **3\. In the semiconductor sector, SK Hynix** plans to double its **wafer production capacity within five years** and stated that the bottleneck in memory chip production capacity may continue until 2030. JP Morgan **significantly raised its global memory market size forecast**, believing that memory chips are transitioning from cyclical commodities to core assets of AI infrastructure, with expected DRAM market revenue reaching **$63.6 billion by 2026**, and the **supply-demand gap continuing to widen**. Shenwan Hongyuan Securities believes that in the context of AI industrialization, as a **main force of computing power infrastructure**, key segments in the electronics sector such as **computing power chips, semiconductor storage, PCBs, and passive components are facing unprecedented innovative opportunities**. The number of listed companies and the range of products in the electronics sector are also continuously expanding, incubating diverse industrial chains and investment themes, **allowing investors to find diverse investment opportunities in the electronics sector** **\[Embrace Technology Giants, Seize Development Opportunities\]** **Electronic ETF Hwabao (515260) and its linked funds (Class A: 012550, Class C: 012551)** passively track the Electronic 50 Index, heavily investing in the **semiconductor and consumer electronics** industries, gathering popular sectors such as **AI chips, automotive electronics, 5G, and printed circuit boards (PCB)**. The weighted stocks include Luxshare Precision, Cambricon, Industrial Fulian, and SMIC. At the same time, this ETF is a **margin trading + interconnection** target, serving as an efficient tool for one-click allocation of **core assets in the electronic sector**. **II. Storage Giants Remain Strong, Will Hexafluorotungsten Become the "New Trend"? China Shipbuilding Special Gas and Baiwei Storage Reach New Highs! Surge 2.7%, Hwabao Sci-Tech Chip ETF Rises for 3 Consecutive Days Against the Market** The semiconductor sector continues its offensive, becoming one of the few upward forces in the market. The **Hwabao Sci-Tech Chip ETF (589190)**, which fully invests in the chip industry, opened low and rose high, with an intra-day price increase of **up to 2.7%**, closing up 1.7%, marking a **three-day consecutive rise against the market**. On the market, semiconductor materials and equipment surged, with hexafluorotungsten seeing both price and volume rise, **China Shipbuilding Special Gas hit the daily limit and continued to set historical highs.** In April of this year, its export average price surged **203.83% month-on-month to USD 149.79 per kilogram**, exceeding expectations. Driven by continuous growth in capital expenditures for downstream storage chips and AI-driven HBM demand, hexafluorotungsten products are expected to maintain strong demand for a considerable period. The explosion of the AI industry has led to rapid iteration of chips, providing continuous growth space for related materials and equipment, with Shanghai Silicon Industry rising over 14% and Huafeng Measurement Control rising over 13%. Storage giants remain strong, **Baiwei Storage surged over 11% to reach a new high**, closing up 8.7%, while Lianyun Technology rose over 5%. Recently, **Baiwei Storage has resubmitted its H-share listing application**, planning to raise 5-6 billion yuan for overseas capacity construction, AI edge-side research and development, and supply chain security layout TrendForce has recently revised its quarterly growth rates for DRAM and NAND Flash product prices, estimating that the overall Conventional DRAM contract price will increase from the previously announced quarterly growth of 55% to 60% in early January to **an increase of 90% to 95%**. Goldman Sachs previously pointed out that **the shortage of memory chips will continue until 2028**, and the market's understanding of the persistence of the memory industry's upward cycle is insufficient. In addition, **Huahong Company** saw its stock rise over 8% during the day, closing up more than 4%. The World Semiconductor Trade Statistics Organization, composed of major semiconductor manufacturers, predicts that **the global semiconductor market size is expected to increase by nearly 90% year-on-year by 2026, with the market size surpassing USD 1.5 trillion**. Zhongyuan Securities pointed out that the overall development speed of AI in 2026 is expected to exceed expectations, leading to a tightening of the overall computing power industry supply chain, with subsequent price increases likely to **continue supporting the rise of the hardware sector**. The government's support for domestic chips has become clearer, and Huawei has provided a new path for domestic chips to catch up. Domestic computing power chips, storage, equipment materials, and components are expected to achieve **accelerated replacement** against the backdrop of global capacity shortages. The prosperity of the industry chain continues to improve.\* Note: The Shanghai Stock Exchange STAR Market Chip Index has shown the following annual returns over the past five complete years: 6.87% in 2021, -33.69% in 2022, 7.26% in 2023, 34.52% in 2024, and 61.33% in 2025. The composition of the index constituents is adjusted in accordance with the index compilation rules, and its historical performance does not predict future performance. It is worth mentioning that in this round of chip market, the STAR Market chips have demonstrated impressive **upward aggressiveness**. The Shanghai Stock Exchange STAR Market Chip Index has **increased by 55.22%** year-to-date, outperforming similar semiconductor chip indices. **Layout of the chip industry "super cycle", preferential selection of 20CM high-elasticity varieties!** Public information shows that the STAR Market Chip ETF Hwabao (589190) and its linked funds (Class A 021224, Class C 021225) passively track the Shanghai Stock Exchange STAR Market Chip Index, while **balancing allocation and full-chain layout** of the chip industry, with **over 90% weight in core areas such as integrated circuits and semiconductor equipment**, featuring high hard technology content and strong aggressiveness. **3\. MLCC and gas turbine concepts jointly explode, multiple stocks hit the limit! Hwabao Fund Military Industry ETF (512810) rises against the market trend, institutions: focus on "military to civilian" investment opportunities** As the market adjusts, the military industry shines against the trend. **Core military assets** — **Military Industry ETF Hwabao (512810) closed up 0.41%, successfully achieving consecutive gains**, maintaining the annual line while recovering the 5-day line. Overall, component stocks saw more declines than gains, but **multiple stocks in the MLCC and gas turbine concepts surged**, providing strong support for the index. **Hongda Electronics hit the 20CM limit, while Zhenhua Technology, China Power, and Xuguang Electronics collectively hit the 10% limit.** Major weighted stocks like Guangqi Technology, Aerospace Electronics, China Satellite, and AVIC Shenfei all fell, which was the main drag. In terms of news, benefiting from the demand boom in AI, the MLCC industry is entering a new round of price increases and an upward cycle of prosperity. According to industry data, Japanese leading companies have raised prices for **MLCC used in AI servers by 15% to 35%**, with some manufacturers increasing prices by 6% to 13%. The delivery time for high-end products has significantly extended to over 20 weeks, and the spot price for consumer-grade products has risen by about 20%. Analysis indicates that some military electronic companies, in addition to military passive components, also include **civilian passive component businesses** such as AI server power supplies and energy storage markets, which are expected to welcome **new growth logic**. Regarding gas turbines, the AIDC outbreak has created a power gap, making gas turbines a necessity. Due to capacity bottlenecks, delivery times for leading overseas brands have reached 1 to 4 years. Domestic manufacturers are responding quickly, launching high-power products ranging from 1.5MW to 2.5MW, and significantly compressing delivery times to 5 to 6 months, **moving from domestic replacement to global order grabbing**. Dongfang Securities stated that the **industrial resonance of the two machines (aero engines and gas turbines)** and the **long-term trend of commercial aerospace** remain unchanged. We continue to be optimistic about these two sectors and recommend paying attention to investment opportunities in **domestic military industry** in the second half of the year.\* CITIC Construction Investment also suggests **focusing on investment opportunities in the military-to-civilian sector**. Cutting-edge military technology spilling over into the civilian field is giving rise to trillion-level new industries such as commercial aerospace, future energy, and large aircraft, driving the development of new processes, new materials, and new devices, forming a **"military technology for civilian use, feeding back into the military industry"** virtuous cycle.\* **\[Invest in military industry, choose "August 1"\]** The military industry ETF Hwabao (512810) (formerly National Defense Military Industry ETF) gathers cutting-edge military technology in "land, sea, air, and space," comprehensively covering popular themes such as **MLCC, gas turbines, commercial aerospace, military AI, and large aircraft**. It is also a **margin trading + interconnection** target, serving as an efficient tool for **one-click investment in core military assets**. Note: For fee rates, please refer to the legal documents of each fund. Reminder: Recent market fluctuations may be significant, and short-term price changes do not indicate future performance. Investors must rationally invest based on their own financial situation and risk tolerance, paying close attention to position and risk management. \\\* Institutional viewpoints reference materials: Galaxy Securities "June Market Focus: Signals of Trading Congestion and Prosperity"; China Merchants Securities' May 27 report "PCB Industry In-Depth Tracking Report: AI Rapid Upgrade Demand Gives Rise to mSAP New Trend, Actively Seize the Main Rising Trend of Computing Power"; JP Morgan's May 29 report "Global Storage Market: CPU Helps Storage Enter a Longer and Higher Prosperity Upcycle"; Shenwan Hongyuan Securities' April 30 report "Q1 2026 Electronic Industry Position Analysis: Increase in AI Domestic Computing Power"; Zhongyuan Securities' 20260529 "Computer Industry Monthly Report - Huawei Defines New Path for Chip Development, Supply Chain Shortage Factors Continue to Affect Computing Power Supply"; Dongfang Securities' 20260601 "National Defense Military Industry Weekly Report: Military Industry Sector Under Short-Term Pressure, Optimistic About Two Machines and Other Sectors, Focus on Domestic Military Industry Progress"; CITIC Construction Investment's 20260518 "National Defense Military Industry Dynamics: 26Q1 Fund Military Holdings Structural Recovery, Focus on Military-to-Civilian Investment Opportunities". Risk Warning: The Sci-Tech Chip ETF Hwabao passively tracks the SSE STAR Chip Index, with a base date of December 31, 2019, and a publication date of June 13, 2022; the Electronic ETF Hwabao passively tracks the CSI Electronic 50 Index, with a base date of December 31, 2008, and published on July 22, 2009; the Military Industry ETF Hwabao passively tracks the CSI Military Industry Index, with a base date of December 31, 2004, and published on December 26, 2013. **The composition of index constituent stocks is adjusted in accordance with the index compilation rules, and its historical performance does not indicate future performance of the index.** The individual stocks mentioned in the text are only objective displays of index constituent stocks and do not serve as recommendations for any individual stocks, nor do they represent the direction of the fund manager and fund investments 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, and investors must be responsible for any investment decisions they make independently. Furthermore, any opinions, analyses, and forecasts in this article do not constitute any form of investment advice to the reader, nor does it bear any responsibility for any direct or indirect losses arising from the use of the content of this article. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Information Summary," and other legal documents related to the fund to understand the risk-return characteristics of the fund and choose products that match their own risk tolerance. **Past performance of the fund does not indicate its future performance, and the performance of other funds managed by the fund manager does not guarantee the performance of the fund.** According to the assessment by the fund manager, the risk level of the Technology ETF Hwabao, the Electronic ETF Hwabao, and the Military Industry ETF Hwabao is R3 - medium risk, suitable for balanced (C3) and above investors, while the STAR Chip ETF Hwabao has a risk level of R4 - medium-high risk, suitable for aggressive (C4) and above investors. The suitability matching opinions should be based on the sales institution. Sales institutions (including direct sales institutions of the fund manager and other sales institutions) conduct risk assessments of the above funds in accordance with relevant laws and regulations. Investors should pay attention to the suitability opinions issued by the fund manager in a timely manner. The suitability opinions from various sales institutions may not necessarily be consistent, and the risk level evaluation results of fund products issued by fund sales institutions must not be lower than the risk level evaluation results made by the fund manager. There may be differences in the risk-return characteristics and risk levels of the fund in the fund contract due to different considerations. Investors should understand the risk-return situation of the fund and carefully choose fund products based on their investment objectives, time horizon, investment experience, and risk tolerance, and bear the risks themselves. The registration of the above funds by the China Securities Regulatory Commission does not indicate any substantive judgment or guarantee regarding the investment value, market prospects, and returns of this fund. 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