7 mentions! From 1.2 trillion to 10 trillion, AI development harbors strong growth potential! Huabao Fund Sci-Tech AI ETF (589520) attracted 36.6 million yuan in net inflows over the past 5 days

Due to geopolitical sentiment disturbances, short-term capital enthusiasm is currently not focused on AI. Today (March 17), the key focus is on the domestic AI industry chain with the Kechuang Artificial Intelligence ETF (589520), which is experiencing slight fluctuations below the surface. However, funds are showing a “buy more as it dips” trend. According to data from the Shanghai Stock Exchange, this ETF has attracted a total of 36.6 million yuan in the past five trading days, reflecting confidence in the domestic AI sector and an early move to position ahead of the market.

In terms of constituent stocks, Anlu Technology led with over 3% gains, InnoPeak Technologies rose more than 2%, Fudan Microelectronics, Cambricon, Hehe Information, and Kingsoft Office all increased by over 1%. On the other hand, Xinghuan Technology-U fell more than 14%, Lingyun Optics dropped over 3%, leading to a drag on the index.

Policy level: At this year’s major meetings, AI has undoubtedly become the most frequently mentioned term. “Artificial Intelligence” has been included in the Government Work Report for three consecutive years, and this year it is mentioned 7 times. By 2025, China’s AI core industry is expected to exceed 1.2 trillion yuan, with over 6,200 companies. The open-source large models developed by Chinese companies are downloaded more than anywhere else in the world. Looking ahead, the “AI+” initiative will be deepened, and by the end of the 14th Five-Year Plan, the AI-related industry scale is projected to grow to over 10 trillion yuan.

Industry perspective: Nvidia’s annual GTC conference has arrived as scheduled. Jensen Huang believes that Nvidia’s new generation AI acceleration chip architecture Blackwell and the next-generation Rubin products will generate at least $1 trillion in revenue by the end of 2027. This figure is twice Nvidia’s own forecast from last year, highlighting that the AI infrastructure investment wave is still rapidly expanding. Industry insiders point out that AI remains the main market theme this year, but due to geopolitical influences, short-term global capital enthusiasm will shift away from AI. However, the Capex of leading CSP companies remains strong, and computing power still has long-term support.

Dongxing Securities believes that the AI industry is currently in a phase of policy, technology, and demand resonance. Leading domestic chip and cloud computing companies are gradually validating their performance, with large firms’ CapEx continuing to boost industry development certainty. Industry prosperity still has upward potential.

【Domestic substitution shines, independent innovation in science and technology】

The Kechuang Artificial Intelligence ETF Huabao (589520) and its linked funds (Linked A: 024560, Linked C: 024561) focus on the domestic AI industry chain. The constituent stocks include domestic GPU leader (such as Cambricon), domestic ASIC leader (such as InnoPeak Technologies), and AI application leader (such as Kingsoft Office). Semiconductors account for nearly half of the weight, with a strong offensive stance; software accounts for over 30%, expected to benefit from AI application-driven rebound. Additionally, this ETF is a margin trading and short-selling target, serving as an efficient tool for one-click domestic computing power deployment.

ETF fee details: The Kechuang Artificial Intelligence ETF Huabao does not charge sales service fees. Subscription and redemption agents may charge a commission of up to 0.5%, including fees from stock exchanges and registration agencies. On-market trading costs are subject to the actual charges of securities firms.

Linked fund fee details: Huabao Shanghai Stock Exchange Science and Technology Innovation Board Artificial Intelligence ETF Initiated Linked Fund (A class) has a subscription fee of 1,000 yuan per transaction for subscriptions of 2 million yuan or more, 0.6% for 1-2 million yuan, and 1% for less than 1 million yuan. Redemption fees are 1.5% if held less than 7 days, and 0% if held 7 days or more, with no sales service fee. The C class of the same linked fund does not charge a subscription fee; redemption fee is 1.5% if held less than 7 days, 0% otherwise; sales service fee is 0.3%.

Risk warning: The Huabao Kechuang Artificial Intelligence ETF passively tracks the Shanghai Stock Exchange Science and Technology Innovation Board Artificial Intelligence Index, which was launched on December 30, 2022, and published on July 25, 2024. The annual gains/losses for 2023 and 2024 are 12.68% and 32.36%, respectively. The index’s constituent composition is adjusted periodically according to the index rules. Past backtested performance does not predict future results. The stocks and index components mentioned are for display purposes only and do not constitute investment advice or reflect holdings or trading activities of any fund managed by the manager. The fund manager assesses the risk level of the Huabao Science and Technology Innovation ETF as R4—medium-high risk, suitable for active investors (C4) and above. Suitability opinions are subject to sales institutions. All information in this article (including stocks, comments, forecasts, charts, indicators, theories, and any other expressions) is for reference only. Investors are responsible for their own investment decisions. The views, analysis, and forecasts in this article do not constitute investment advice, and the fund manager is not responsible for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest cautiously.