Hong Kong stocks in the chip sector rebounded, with 159131 gaining popularity, and funds aggressively purchased 386 million shares! The non-ferrous metals sector led the market, and brokerage firms showed rare excitement, with Hwabao Fund's brokerage ETF rising by 2%

On May 26, the A-share market experienced high-level fluctuations, with the Shanghai Composite Index slightly down 0.17% at 4145.37 points, the Shenzhen Component Index up 0.12%, and the ChiNext Index up 0.54%, with over 4,000 stocks declining. Market sentiment remained high, with a total transaction volume of 3.26 trillion yuan, continuing to increase week-on-week. In terms of market performance, non-ferrous metals opened low and rose high, leading the entire market in the afternoon. The 200 billion giant China Aluminum hit the daily limit, while the largest non-ferrous ETF Hwabao (159876) surged 2.85% to recover the six-month moving average. In news, Guinea, the world's largest bauxite producer, plans to introduce export control measures next month to boost aluminum prices. Brokerages, which had been quiet for a long time, showed signs of activity, with Jinlong Co., Ltd. hitting the daily limit during the session, and CITIC Securities rising 5.66%. The top-tier brokerage ETF Hwabao (512000), with a scale of 35.9 billion yuan, rose over 2% in the morning session and closed up 1%, achieving consecutive gains. This year, the performance and valuation of listed brokerages have diverged significantly, making high-cost performance configuration opportunities worth paying attention to. The technology sector exhibited a V-shaped performance, with a surge in PCB stocks at the end of the trading day, with Shengyi Electronics hitting the daily limit at 20%, and Shengyi Technology up 10%, driving related popular ETFs such as electronic ETF Hwabao (515260), technology ETF Hwabao (515000), and innovation and entrepreneurship 50 ETF Hwabao (588330) to collectively rise, continuing to set new highs! After a sharp rise, the A-share chip chain underwent a significant correction, with Lanke Technology, SMIC, and Zhongwei Company all falling over 4%. The science and technology chip ETF Hwabao (589190), which focuses on the chip industry, hit a new high at the opening before retreating, closing down 2.12%. As the Hong Kong stock market opened today, the chip chain's heavyweight leaders rebounded, with SMIC rising 5.7% and HUA HONG SEMI soaring 10.45%. The CSI Hong Kong Connect Information Technology Composite Index, heavily weighted in these two wafer giants, surged 4.62%. Among the ETFs tracking this index, the largest and most liquid Hong Kong Connect Information Technology ETF Hwabao (159131) recorded a single-day transaction of 2.621 billion yuan, setting a historical high, with bulls making a massive subscription of 386 million units throughout the day. Currently, the A-share market is showing a pattern of fluctuating consolidation and extreme structural differentiation, with short-term volatility being significant. However, market trading activity remains at a high level, and there has not been a noticeable change in the funding structure, suggesting that the foundational logic of the mid-term structural market may still be solid The movement of leveraged funds confirms that the market's bullish sentiment remains strong. Following the A-share margin balance (the sum of financing balance and margin balance) breaking through 2.9 trillion yuan on May 20, on May 25, the A-share financing balance first broke through 2.9 trillion yuan, reaching 2.90354 trillion yuan. 【ETF All You Need to Know Hotspot Review】Next, let's focus on the trading and fundamentals of several thematic sectors such as Hong Kong Stock Connect information technology, non-ferrous metals, and brokerages. 1. "SMIC + Hua Hong" content exceeds 23%, Hong Kong stock chip chain is favored by funds! The largest Hong Kong Stock Connect information technology ETF Hwabao (159131) saw its first pullback after reaching a new high, with a massive fund subscription of 386 million shares. The domestic chip semiconductor industry chain has experienced fluctuations and declines. The largest and most liquid Hong Kong Stock Connect information technology ETF Hwabao (159131) welcomed a pullback after reaching a new high yesterday, closing down 3.81%, with a transaction amount exceeding 2.6 billion yuan, setting a new high since its listing. Funds surged in during the decline, with a single-day subscription reaching 386 million shares and a net subscription of 296 million shares! In terms of constituent stocks, the weighted stocks in the sector collectively rebounded, with Lenovo Group, Legend Holdings, ASMPT, and Hua Hong Semiconductor rising over 10%, while BYD and Jiantao Jiceng Board rose over 6%. At this point, will technology growth face an overall retreat due to high positions? Kaiyuan Securities believes that it is more likely not a "technology retreat," but rather an internal switch within technology, and the growth style is spreading to more "secondary ignition" assets. The current microstructure is close to a sensitive area, essentially serving as a catalyst for the bull market entering its third phase. In the first bull market, buying is for recovery; in the second bull market, buying is for revaluation; in the third bull market, buying is for ignition. After entering the third bull market phase, the market will no longer indiscriminately reward elastic assets, but will begin to select directions that truly possess profit realization and acceleration of prosperity. Guosheng Securities pointed out that the release of the "Tao Law" is a milestone event for China's semiconductor industry to transition from "follower" to "leader." It breaks the long-standing dominance of Western theories in the global semiconductor industry, providing a Chinese solution that combines innovation and feasibility for industrial development, which is expected to reshape the competitive landscape and development trajectory of the global semiconductor industry. The Tao Law can also effectively enhance the effective computing power of chips under limited power consumption, thereby saving costs and empowering the AI wave. Since bottoming out and rebounding on March 31, the Hong Kong Stock Connect information technology ETF Hwabao (159131) has seen its benchmark index—the CSI Hong Kong Stock Connect Information Technology Composite Index increase by 32.59%, while the Hang Seng Technology and Hong Kong Stock Connect Technology indices have increased by 3.83% and 2.6%, respectively, showing significant sharpness and elasticity. Statistical period: 2026.3.31-2026.5.22. The annual historical returns of the Hong Kong Stock Connect Information C Index from 2021 to 2025 are: -9.54%, -34.47%, -0.25%, 21.58%, 39.30%. Past performance of the index does not indicate future performance. Supports T+0 trading! Directly targeting the super cycle of Hong Kong stocks in chips — the first in the market, the largest in scale, and the most liquid Hong Kong Stock Connect Information Technology ETF Hwabao (159131), with the off-market connecting fund code 026755, the underlying index is composed of “70% hardware + 30% software”, heavily invested in Hong Kong stocks in “semiconductors + electronics + computer software”, covering 52 Hong Kong hard tech companies, among which the content of storage chips exceeds 26%, especially the combined weight of SMIC and HUA HONG SEMI exceeds 23%, making it the index with the highest weight of advanced wafer manufacturing in the entire market. The index constituents do not include large-cap internet companies such as Alibaba, Tencent, and Meituan, making it sharper and easier to capture the Hong Kong stock AI hard tech market. (As of 2026.5.22) II. Oversold rebound? Hwabao Fund's Nonferrous ETF (159876) rose over 3.2% at its peak! Leading aluminum companies significantly led the rise, with China Aluminum and 3 other stocks hitting the daily limit! The nonferrous metals sector led the two markets, with a net inflow of CNY 10.968 billion from main funds throughout the day, making it the highest in terms of capital absorption among 31 first-level industries in Shenwan. The largest scale nonferrous ETF Hwabao (159876) saw its intra-day price rise over 3.2%, closing up 2.85%, reclaiming both the 10-day and 6-month moving averages, with a total trading volume of CNY 168 million, a month-on-month increase of 93%, and active trading! In terms of constituent stocks, China Aluminum, Huaxi Nonferrous, and Jinchuan Group all hit the daily limit, Nanshan Aluminum rose over 8%, Guocheng Mining, Western Gold, Yun Aluminum, and Tianshan Aluminum rose over 7%. Major stocks Luoyang Molybdenum rose over 5%, Zijin Mining rose over 4%. On a macro level, news that the United States and Iran are expected to reach a ceasefire agreement boosts market sentiment, with the market anticipating that the Strait of Hormuz will reopen. As a result of this news, international oil prices have plummeted by over 5%, and inflation concerns have eased. Dongxing Securities believes that the current market expectations for interest rate hikes by the end of 2026 to 2027 may be excessive, as the U.S. economy is not "overheating," but rather driven by a K-shaped economic structure propelled by AI and energy. The market may be mispricing expectations for interest rate hikes*. On the industrial level, Guinea, the world's largest bauxite producer, plans to introduce export control measures for bauxite next month to boost aluminum prices. Guinea accounts for over one-third of global bauxite production, and its policy changes have directly intensified market concerns about a contraction in raw material supply. From an industrial logic perspective, companies with high ore self-sufficiency or diversified overseas layouts will benefit first. Leading aluminum companies such as China Aluminum, Yun Aluminum, and Tianshan Aluminum, which have prominent advantages in resource access, are expected to take the initiative in this round of raw material price competition. Zhongtai Securities points out that in the medium term, the global manufacturing PMI exceeded expectations in April, and overseas manufacturing demand continues to recover. Additionally, prices of non-ferrous metals represented by copper and aluminum are expected to rise due to inflation expectations, maintaining a medium-term positive outlook on investment opportunities in industrial metals represented by copper and aluminum*. Looking ahead, industry insiders indicate that cyclical resource varieties such as non-ferrous metals, despite facing market volatility in the short term, will benefit from industrial structure optimization and sustained demand growth, with long-term performance still promising. Furthermore, based on performance trend model analysis, the current valuation of the non-ferrous sector is reasonable, and it is expected to welcome rebound opportunities. It is recommended to focus on its potential performance in the industrial chain and seize the investment window created by the overselling. 【The non-ferrous wind is upon us, and the "super cycle" is unstoppable】 The Hwabao Non-Ferrous ETF (159876) and its linked funds (Class A: 017140, Class C: 017141) comprehensively cover industries such as copper, aluminum, gold, rare earths, and lithium, providing full-category coverage to better capture the beta market of the entire sector. Additionally, this ETF is a margin trading target, serving as an efficient tool for one-click exposure to the non-ferrous metals sector. *As of May 25, the latest scale of the Hwabao Non-Ferrous ETF (159876) is 1.612 billion yuan, making it the largest ETF among the three ETF products tracking the same index in the entire market. III. Brokerages Rise Against the Trend, Hwabao Fund's Leading Brokerage ETF (512000) Surges 2%, Valuation Bottoming Out Resonates with Strong Fundamentals, Over 900 Million Yuan in Funds Flood In The brokerage sector is active, with the leading Brokerage ETF Hwabao (512000), valued at 35.9 billion yuan, surging in the morning session, with the on-market price once rising over 2%, closing up 1%. Jinlong Co., Ltd. briefly hit the daily limit, closing up over 8%, CITIC Securities surged 7% during the session, closing up 5.66%, while other stocks such as Huatai Securities, China Galaxy, Everbright Securities, and China Merchants Securities also showed upward performance. On the news front, the China Securities Regulatory Commission and eight other departments recently jointly issued the "Implementation Plan for Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Operations." At the same time, the CSRC has seriously investigated illegal cross-border business cases involving institutions such as Tiger Brokers and Futu. Analysts pointed out that the strong regulatory measures by the eight departments directly benefit leading brokerages and their compliant overseas channels. Since the beginning of this year, the performance and valuation of listed brokerages have diverged significantly. As the brokerage sector re-enters a high cost-performance ratio range, it has once again attracted market and capital attention. As of May 25, the securities company index has accumulated a decline of 13.76% this year, ranking behind other industries; among them, 16 listed brokerages, including Guotai Junan and Haitong, have experienced "broken net asset value," while leading brokerages such as Huatai Securities and GF Securities have fallen below 10 times PE. At the same time, the brokerage sector performed well in the first quarter, and with the capital market remaining active, equity financing recovering, and the steady development of derivative businesses, brokerage performance is expected to further improve. According to CITIC Securities, the securities industry is expected to achieve around 14% profit growth by 2026, bringing ROE to the 80th percentile level in the past 10 years.* High Prosperity + Low Valuation Suggests Left-Side Layout Opportunities, with the Brokerage ETF Hwabao (512000) recently seeing a concentrated increase in funds. Data from the Shanghai Stock Exchange shows that 512000 has attracted 497 million yuan in the last two days, with a cumulative net inflow of over 900 million yuan in the last 10 days. Zhongtai Securities stated that the disturbances from refinancing have been digested, and with policies such as the "14th Five-Year Plan" for a financial powerhouse, mergers and acquisitions, expansion of derivatives, and relaxation of refinancing, the brokerage sector is expected to welcome a systematic repricing. On the funding sentiment side, previous suppressive factors have dissipated, and the high trading volume supports the highlighted cost-performance ratio.* High prosperity + low valuation, focus on the recovery of the brokerage market! The Brokerage ETF (512000) and its linked funds (Class A 006098, Class C 007531) passively track the CSI All Share Securities Companies Index, encompassing 49 listed brokerage stocks with one click. It is a highly efficient investment tool that focuses on leading brokerages while also considering small and medium-sized brokerages. The Brokerage ETF (512000) has a latest fund size of nearly 36 billion yuan, with an average daily trading volume of over 1.1 billion yuan this year, making it the top brokerage ETF in A-shares in terms of scale and liquidity. Data source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges, etc. Note: The "first in the entire market" refers to the Hwabao ETF, which is the first ETF in the entire market to track the CSI HK Connect Information Technology Composite Index. As of May 22, 2026, the latest on-market size of the Hwabao HK Connect Information Technology ETF is 840 million yuan, making it the largest among the 7 ETFs tracking the CSI HK Connect Information Technology Composite Index; the average daily trading volume of the Hwabao HK Connect Information Technology ETF this year is 256 million yuan. *Institutional viewpoints reference materials: 1: Kaiyuan Securities "The digestion of crowded trades is not the end of the bull market"; Guosheng Securities "Huawei announces 'τ Law', semiconductor enters a new cycle of resonance between advanced and mature processes." 2: Soochow Securities released on May 24 "Interest rate hike expectations still 'overheated', how to outlook US Treasury rates?"; Zhongtai Securities released on May 25 "Zhongtai Nonferrous Metals Weekly: Pay more attention to the bottom of the ship." 3: CITIC Securities 20260526 "Quality institutions in the securities industry are expected to continue high growth in 2026"; Zhongtai Securities 20260514 "Who stole the elasticity of this round of brokerages? Starting from the number of shareholders and trading perspective." Note: ETF funds do not charge sales service fees. When investors subscribe or redeem fund shares, the brokerage acting as the subscription and redemption agent may charge a commission not exceeding 0.5%, which includes related fees charged by securities exchanges, registration agencies, etc. Fund rates are detailed in the respective fund legal documents. Risk warning: The individual stocks mentioned in this article are only an objective display of index constituent stocks and do not constitute any stock recommendations, nor do they represent the fund manager and fund investment direction. 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 made independently. 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