Is the market waiting for the right moment to bottom out? The chemical sector is experiencing a major surge, with Huabao Fund Chemical ETF (516020) soaring 3.64%! Samsung memory prices are increased again by 30%, and the STAR Market chip ETF jumps strongly by 2%.

On April 7, the three major A-share indexes all finished higher in unison. Nearly 4,000 stocks across the market rose. The trading value across Shanghai, Shenzhen, and Beijing totaled RMB 1.62 trillion, shrinking by RMB 45.3 billion versus the previous trading day.

Possibly because the Saudi Jubail Industrial City—an important petrochemical production hub accounting for 6%-8% of the world’s total output—was hit by fighting in the Middle East, leading to explosions. As a result, China Chemical’s production capacity that provides supply-chain resilience may command a premium. The chemical sector surged across the board, with Huabao Chemical ETF (516020)—where chemical weights exceeding 80% come from petrochemicals and basic chemicals—see its on-exchange price jumped 3.64%.

Samsung Electronics delivered a spectacular first-quarter performance, with operating profit increasing by more than 7 times to a record high. Combined with Samsung memory again raising prices by 30%, it boosted the storage-chip sector. The on-exchange price of Huabao Science and Technology Chip ETF (589190), which is fully allocated to the chip industry, surged 2.02%. Foxconn’s trial production of the Apple foldable-screen iPhone benefited the Apple supply chain. The Huabao Electronic ETF (515260), covering the Apple and semiconductor industrial chains, rose nearly 2% intraday and closed up 1.3%.

Pig prices hit their lowest level in more than a decade. China’s central government pork reserve purchases helped support pig prices. The first Agriculture, Forestry, Animal Husbandry and Fishery ETF Huabao (159275) across the market saw its on-exchange gain lead the way, reaching as high as 2.65%, and closed up 1.38%. A renewed medical offensive? The A-share medical sector surged and then pulled back, performing overall better than the broader market. The largest Medical ETF Huabao (512170) in terms of market size rose as high as 1.85% earlier in the day. With the Hong Kong market closed, the Hong Kong Stock Connect Medical ETF Huabao (159137) listed on A-shares got preheating early and closed up 0.87%.

CITIC Construction Investment believes that the Middle East situation continues to escalate and is complex and volatile. The market has been oscillating repeatedly around negotiation signals. Meanwhile, Middle East military actions have shifted from air strikes to preparations for ground operations. The next 2-3 weeks remain a high-risk period in which the situation could rapidly deteriorate. The market is waiting for the right time to buy the dip. On the other hand, internal fundamental factors are also worth revisiting, and a series of data jointly supports the trend of an improving economy. As March’s economic data are about to be released and the earnings season approaches, the market’s focus will gradually shift toward substantive verification of the quality of economic recovery and improvements in corporate profitability.*****

This institution recommends patiently building positions along three clues: the energy security and inflation main line, certainty growth assets, and policy beneficiaries and the peak-season prosperity direction. Industry focus includes: power equipment, public utilities, chemicals, the AI industrial chain, innovative drugs, the infrastructure construction industrial chain, service consumption, and so on.*

【Everything You Need to Know About ETFs—Hot Topic Closing Report】 Let’s focus on the trading and fundamentals of sector-themed ETFs such as chemicals, healthcare, and electronics.

I. 【Chemical Sector Blasts to a Limit-Up Wave, Huabao Fund’s Chemical ETF (516020) Rallies 3.64%! Over RMB 12 billion in lead orders went on a buying spree—are China Chemical assets’ value re-rating imminent?】

The chemical sector attacked hard all day! Reflecting the overall trend of the chemical sector, Huabao Chemical ETF (516020) rose rapidly after the open, then continued to trade in a high-level consolidation. Near the close, it climbed again. As of the close, the on-exchange price rose 3.64%.

Regarding constituent stocks, petrochemicals, synthetic resins, and nitrogen fertilizers saw some leading individual stock gains. As of the close, Hengyi Petrochemical, Shengquan Group, and Luxi Chemical all hit limit-up; Hualu Hengsheng surged 9.43%. Junzheng Group, Baofeng Energy, Yangnong Chemical, and others also led on the upside.

What’s worth noting is that the chemical sector’s performance this year has significantly outpaced the broader market. Data show that as of today’s close, the chemical ETF Huabao (516020)’s tracked benchmark—China’s chemical sub-sector index—has gained 4.01% year-to-date, clearly outperforming major A-share indexes over the same period, such as the Shanghai Composite Index (-1.98%) and the CSI 300 Index (-4.09%).

Source of data: Wind. The value range is 2026.1.1-2026.4.7. The sub-chemical index’s full-year gains/losses over the last 5 complete years are: 2021, 15.72%; 2022, -26.89%; 2023, -23.17%; 2024, -3.83%; 2025, 41.09%. The composition of index constituents is adjusted in a timely manner according to the index compilation rules. Its backtested historical performance does not indicate the index’s future performance.

On the capital-flow front, basic chemicals have been continuously attracting additional allocation from lead capital. Data show that as of the close, the basic chemicals sector recorded net inflows from lead capital of more than RMB 12 billion in a single day, with the net inflow amount ranking first among the 30 CITIC Level-1 industries.

Some analysts point out that recently, due to worries about the economy, the chemical sector experienced certain pullbacks, which may reflect an overreaction. 2026 could be an inflection point for chemicals upward. Right now, the chemical industry has strong reality but weak expectations. Geopolitical events could be an opportunity for a new round of China’s chemical industry rise. In the medium to long term, we remain bullish about the industry’s upward trend.

Looking ahead, Kaiyuan Securities said that in the short term, regional conflicts intensify, overseas orders may shift to domestic markets, and this could drive demand for domestic chemical products or at least stabilize support for higher chemical-product prices. In the medium to long term, if global crude oil supply returns to normal and affected overseas facilities require time to restart, the world—and at least the market—may see a new round of restocking demand for chemical products. We believe China’s chemical assets will see a value re-rating.*

How to seize opportunities in the chemical sector? Gaining access via Huabao Chemical ETF (516020) may offer even higher efficiency. Public information shows that Huabao Chemical ETF (516020) tracks the CSI Chemical Sub-Sector Industrial Theme Index. The combined weight of the petrochemicals and basic chemicals sectors is over 80%. Investors outside the exchange can also invest in the chemical sector through Huabao Chemical ETF Connection Fund (Class A 012537/Class C 012538).

II. 【A Renewed Medical Offensive? Huabao Fund’s Medical ETF (512170) and the Hong Kong Stock Connect Medical ETF Team Up to Close Higher! Glove Leader Soars 14% Intraday; CXO Leader Delivers High-Glow Earnings】

The A-share medical sector surged and then retreated. Overall, it performed better than the broader market. The largest medical ETF in the market, Huabao (512170), rose as high as 1.85% earlier in the day. The full-day trading range was 2.42%, and trading volume was RMB 438 million. With the Hong Kong market closed, the Hong Kong Stock Connect Medical ETF Huabao (159137), listed on A-shares, got early preheating, and closed up 0.87%.

The 50 healthcare blue chips covered by Medical ETF Huabao (512170) saw 28 of them close higher. The glove leader Sino Medical led the way all day, surging more than 14% intraday and setting a new 3-year high, then closed up 9.69%. On the news front, geopolitical factors pushed up crude oil prices, driving a sharp increase in chemical costs. One-off glove prices may also follow up significantly.

CITIC Construction Investment said, it is recommended to add to allocations to the medical device sector in 2026. In the short term, it is recommended to capture opportunities from earnings improvement stocks—specifically, earnings enhancement and valuation repair—and to watch new technology areas such as surgical robots and brain-computer interfaces. In the long term, sector investment opportunities come from innovation, going global, and M&A integration, and valuations are being rebuilt.*

Today’s CXO leaders showed divergence. Innovent Biotech rose 1.31%, while Qylenti? and Zhaoyan New Drugs fell more than 2%. Although the market fluctuates, the earnings logic for CXO remains. Huabao Medical ETF (512170) covers 8 CXO leaders, with a total weight of 25%. Currently, 7 of the companies have disclosed their 2025 performance. Among them, only Kanglong Chemical saw net profit decline year-on-year by single-digit percentages. Zhaoyan New Drugs, Boting Shares, Tigermed, and Innovent Biotech all saw net profit year-on-year growth rates exceeding 100%!

HuaFu Securities called for “paying attention to the strategic allocation value of CXO throughout the year!” Soochow Securities also noted that as investment and financing sentiment improves and new drug molecule technology drives the sector, CXO’s industry sentiment may continue to move upward.

One-click investing in medical leaders, choose the allocation tool that fits—the largest medical ETF in the market, Huabao Medical ETF (512170) and its off-exchange connection fund (012323). Heavily weight medical devices + medical services (CXO content 25%).

If you want more aggressive offense, choose the high-volatility T+0 tool—Hong Kong Stock Connect Medical ETF Huabao (159137)**, anchored to medical innovation, with CXO content exceeding 40%, covering popular themes such as AI medical, brain-computer interfaces, innovative drugs and devices, and more.

III. 【Samsung Memory Raises Prices Again by 30%! Hitting Top of the A-Share Inflow List, Huabao Fund’s Electronic ETF Huabao (515260) Hits a High of 1.95%】

The electronics sector saw net inflows from lead capital of RMB 8.8 billion throughout the day. The sector’s attracted funds ranked second among 31 Shenwan Level-1 industries by inflow amount. Cambricon received a buying spree from lead capital of RMB 16.2k, topping the A-share inflow list.

For popular ETFs, Huabao Electronic ETF (515260)—which covers both Apple’s industrial chain and the semiconductor industrial chain—saw the highest on-exchange gain of 1.95%, closing up 1.3%. Worth noting is that this ETF traded at a wide intraday premium on-exchange; at the close, the premium rate reached 0.81%, indicating that buying orders were even stronger!

In terms of constituent stocks, Cambricon led with gains of more than 9%. Huaqin? Technologies, Shengbang Shares, and Goodyear? Technology rose more than 5%. Among others, Inspur Information, and Semiconductor Manufacturing International Corporation followed with gains.

On the Apple industrial chain side, Foxconn has already started trial production of the Apple foldable-screen iPhone. Industry insiders said Apple is expected to capture about 28% of the market share in 2026, approaching Samsung’s leading position. West China Securities said Apple is accelerating its entry into foldable screens, which is expected to drive faster volume ramp-up for foldable-screen phones, and may also help lead the foldable-screen industrial chain to achieve innovative upgrades.*

On the semiconductor industrial chain side, global semiconductor giant Samsung Electronics delivered a spectacular first-quarter performance: operating profit increased by more than 7 times to a record high. The core drivers came from a surge in demand and price hikes for storage chips driven by the global AI industry boom. In fact, Samsung memory raises prices again by 30%. Ai Jian Securities believes that the global storage chip market’s price-hike cycle may continue into 2026*.

On fundamentals, the electronics sector is seeing a “good news tide” of earnings. As of April 6, Huabao Electronic ETF (515260) had 24 constituent stocks that had already released their 2025 annual reports. Among them, 23 listed companies reported profits; 21 companies saw their attributable net profit grow year-on-year by double digits. Cambricon, Shenghong Technology, and TCL Technology saw attributable net profit year-on-year increases of 555.24%, 273.52%, and 188.78%, respectively.

Guojin Securities pointed out that the current electronics industry benefits from a boom in AI computing demand, with key driving factors including global technology giants’ capital expenditures exceeding expectations, storage chip prices continuing to rise, and the acceleration of domestic substitution of semiconductor materials. It suggests focusing on directions where Q1 performance may exceed expectations, such as AI computing hardware, storage chips and modules, and passive components***.

Note 1: For fee details, see each fund’s legal documents.

Note 2: The first Agriculture, Forestry, Animal Husbandry and Fishery ETF in the market (159275) refers to the ETF that tracks the CSI All-Index Agriculture, Forestry, Animal Husbandry and Fishery Index.

Source: Shanghai and Shenzhen stock exchanges, etc., as of 2026.4.7. Reminder: Market volatility in the near term may be relatively large, and short-term gains or losses do not indicate future performance. Investors are reminded to make rational investments based on their own financial situation and risk tolerance, and to pay close attention to position sizing and risk management.

*Institutional views—reference sources: ① “The Market Is Waiting for the Right Time to Buy the Dip,” released by CITIC Construction Investment on April 6; ② Kaiyuan Securities’ April 6 weekly report on the basic chemical industry, “Major chemical product inventories decline; expect future global chemicals restocking demand”; ③ CITIC Construction Investment’s April 6 weekly report on the medical device industry; ④ Huafu Securities’ April 6 “Biopharmaceutical Industry Regular Report: CXO annual report earnings orders accelerate in sync; a must-have strategic sector for 2026!”; ⑤ Soochow Securities’ April 6 weekly tracking report on the biopharmaceutical industry: “CXO leaders’ earnings exceed expectations and are delivered; pay attention to Innovent Biotech, Qylenti, and others”; ⑥ West China Securities’ July 7, 2025 report “Foldable Screen Phone Industry: Apple Accelerates Entry into Foldable Screens; Core Components May Deeply Benefit”; ⑦ Ai Jian Securities’ December 22, 2025 report “Storage Chip Price Increases May Continue to 2026”; ⑧ Guojin Securities’ March 29 report “Electronics Industry Weekly: Watch Directions Where Q1 Performance May Exceed Expectations.”

Risk warning: Huabao Chemical ETF passively tracks the CSI Chemical Sub-Sector Industrial Theme Index. This index’s base date is 2004.12.31 and it was published on 2012.4.11; Huabao Science and Technology Chip ETF passively tracks the SSE STAR Market Chip Index. Its base date is 2019.12.31 and it was published on 2022.6.13; Huabao Agriculture, Forestry, Animal Husbandry and Fishery ETF passively tracks the CSI All-Index Agriculture, Forestry, Animal Husbandry and Fishery Index. Its base date is 2004.12.31 and it was published on 2016.12.12; Huabao Medical ETF passively tracks the CSI Medical Index. Its base date is 2004.12.31 and it was published on 2014.10.31; Huabao Hong Kong Stock Connect Medical ETF passively tracks the CSI Hong Kong Stock Connect Medical Theme Index. Its base date is 2018.12.31 and it was published on 2022.07.21; Huabao Electronic ETF passively tracks the CSI Electronics 50 Index. Its base date is 2008.12.31 and it was published on 2009.7.22, the composition of index constituents is adjusted in a timely manner according to the index compilation rules, and its backtested historical performance does not indicate the index’s future performance. The individual stocks mentioned in the article are only objective listings of constituents, and do not constitute any recommendation for any stock, nor represent the fund manager’s and fund’s investment direction. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, metrics, theories, and any form of statements) is only for reference; investors must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice of any kind to readers, and Huabao Fund does not take any responsibility for direct or indirect losses caused by the use of the contents of this article. Investors should carefully read the fund’s legal documents such as the “Fund Contract,” “Prospectus,” and “Fund Product Information Summary” to understand the fund’s risk and return characteristics, select products that match their risk tolerance, and bear the risks themselves. Past performance of the fund does not predict its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of the fund. Based on the fund manager’s assessment, the risk level of Huabao Chemical ETF, Huabao Agriculture, Forestry, Animal Husbandry and Fishery ETF, Huabao Medical ETF, and Huabao Electronic ETF is R3—medium risk—suitable for investors who are balanced (C3) or above. The risk level of Huabao Science and Technology Chip ETF and Huabao Hong Kong Stock Connect Medical ETF is R4—medium-to-high risk—suitable for investors who are active (C4) or above. For the appropriateness matching opinions, please refer to the sales institutions. Sales institutions (including the fund manager’s direct selling channels and other sales institutions) conduct risk evaluations of the above funds under relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by the fund manager. The appropriateness opinions of different sales institutions do not necessarily match, 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. The Fund Contract’s description of the fund’s risk and return characteristics and its risk level may differ due to different considerations. Investors should understand the fund’s risk and return situation, carefully choose fund products in light of their own investment objectives, time horizon, investment experience, and risk tolerance, and bear risks themselves. The China Securities Regulatory Commission’s registration of the above funds does not indicate substantive judgments or guarantees regarding the investment value, market prospects, and returns of the funds. Fund investing involves risks and should be done carefully.

（责任编辑：刘畅 ）

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