On June 18, the sci-tech innovation chip market experienced an extreme short squeeze, with the 900 billion giant Cambricon launching a strong attack, with a maximum increase of over 16%, closing up more than 14%, and the stock price reaching a new high of 1500 yuan, with a closing market value of nearly 950 billion yuan, just one step away from the "trillion club." Hua Hong Semiconductor rose over 12% during the session, closing up more than 6%; Haiguang Information rose over 6%, while SMIC and Bairui Storage rose over 4%. More than 10 stocks including Hua Hong Semiconductor, Bairui Storage, China Shipbuilding Special Gas, and Jiewa Tech reached new highs in bulk.

The fully "core" layout of the chip industry, with component stocks being more hardcore, the sci-tech innovation chip ETF Hwabao (589190) saw its market price once rise over 5%, closing up 4.46%, continuously setting new highs since its listing!

It is worth mentioning that in the semiconductor market this year, sci-tech innovation chips have shown impressive upward aggressiveness. The SSE STAR Chip Index has increased by 76.55% year-to-date, performing better than similar semiconductor chip indices.

Note: The SSE STAR Chip Index has had 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's constituent stocks is adjusted in accordance with the index compilation rules, and its historical performance does not predict future performance.

Driven by market trends, leading cloud vendors are increasing their procurement of domestic chips. Industry insiders say ByteDance is discussing the procurement of at least 50,000 AI chips from Tianzuo Zhixin, mainly for inference work, sparking market speculation about the scalable implementation capabilities of domestic AI chips.

According to IDC data from April this year, the total delivery volume of AI accelerator cards in the Chinese market is expected to reach 4 million by 2025, with domestic manufacturers delivering 1.65 million units, increasing their market share to 41%, while Nvidia's share in China has significantly shrunk from nearly monopolistic 95% to 55%.

Guosen Securities pointed out that against the backdrop of restrictions on high-end chips overseas, domestic Xinchuang and large model iterations resonate, driving domestic AI chip manufacturers to accelerate adaptation and volume production, bringing incremental opportunities to the full-stack ecosystem

• Guojin Securities also believes that the current competition in computing power has moved beyond a single-chip performance comparison, entering a new stage of system-level competition involving chips, storage, connectivity, software, and cluster collaboration. Domestic computing power chips are experiencing a quadruple resonance of policy, demand, technology, and ecology, leading the industry into a high-growth cycle of order expansion and performance realization, becoming the core configuration main line of the technology sector.*

As we enter mid to late June, the market welcomes the mid-year performance verification window. Due to high performance expectations, the market attention on leading companies in high-boom cycle sub-sectors within the technology track is expected to further intensify, and the hard technology main line may see strong players continue to thrive.

Layout for the chip industry "super cycle," preferentially select 20CM high-elasticity varieties! Public information shows that the Hwabao STAR Chip ETF (589190) and its connecting funds (Class A 021224, Class C 021225) passively track the SSE STAR Chip Index. While balancing allocation and full-chain layout of the chip industry, the weighting in core areas such as integrated circuits and semiconductor equipment exceeds 90%, featuring high hard technology content and strong aggressiveness.

Public data indicates that the management fee for the Hwabao STAR Chip ETF (589190) is 0.3%, the custody fee rate is 0.08%, and the comprehensive fee rate is 0.38%, which is relatively low among ETFs tracking the same index.

Data source: Shanghai and Shenzhen Stock Exchanges, etc.

Institutional viewpoints source: Guosen Securities 20260617 "Large Models Drive Computing Power Transformation, Domestic Computing Power Welcomes Incremental Opportunities"; Guojin Securities 20260430 "Tech Giants Firmly Invest in AI, Deepening Domestic Substitution."

ETF fee-related explanation: When investors subscribe or redeem fund shares, the subscription and redemption agency may charge a commission not exceeding 0.5%, which includes related fees charged by the securities exchange, registration agency, etc. Connecting fund fee-related explanation: The subscription fee rate for Hwabao STAR Chip ETF Connecting A (front-end charge) is 1,000 yuan per transaction when the subscription amount is 2 million yuan (inclusive) or more, 0.2% for 1 million yuan (inclusive) to 2 million yuan, and 0.5% for amounts below 1 million yuan; the redemption fee rate is 1.5% for holding periods of less than 7 days, and 0% for holding periods of 7 days (inclusive) or more. Hwabao STAR Chip ETF Connecting C does not charge a subscription fee, and the redemption fee rate is 1.5% for holding periods of less than 7 days, and 0% for holding periods of 7 days (inclusive) or more; the sales service fee is 0.2%.

Risk warning: Hwabao STAR Chip ETF passively tracks the SSE STAR Chip Index, with a base date of December 31, 2019, and a publication date of June 13, 2022. This product is issued and managed by Hwabao Fund, and the distribution agency does not bear the responsibility for the product's investment, redemption, and risk management. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Summary," and other legal documents of the fund to understand the risk-return characteristics of the fund Choose products that match your own risk tolerance. The fund manager assesses the risk rating of this fund as R4 - medium to high risk, suitable for investors with an appropriateness rating of C4 and above. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Past performance of the fund does not indicate its future performance; the fund carries risks, and investment should be cautious! Sales institutions (including direct sales institutions of the fund manager and other sales institutions) conduct risk assessments of this fund in accordance with relevant laws and regulations. Investors should pay attention to the appropriateness opinions issued by the fund manager in a timely manner. The opinions on appropriateness from various sales institutions may not necessarily be consistent, and the risk rating evaluation results provided by the fund sales institutions must not be lower than the risk rating evaluation results made by the fund manager. There may be differences in the characteristics of fund risk and return and fund risk ratings in the fund contract due to different considerations. Investors should understand the risk and return situation of the fund and carefully choose fund products based on their own investment objectives, time horizon, investment experience, and risk tolerance, and bear the risks themselves. The registration of this fund by the China Securities Regulatory Commission does not indicate a substantive judgment or guarantee regarding the investment value, market prospects, and returns of this fund. The fund carries risks, and investment should be cautious