ETF Today's Closing Review | Hong Kong Stock Connect 100 ETF Huaxia Rose Over 6%, Communication-Related ETFs Rose Over 2%

Ask AI · How is the AI industry wave driving communication ETFs to rise against the trend?

Daily Economic News reporter: Ye Feng Daily Economic News editor: Peng Shuiping

The market fluctuated and adjusted throughout the day, with the three major indices opening high and then declining, and the Shanghai Composite Index once again falling below the 3,900-point mark. From the sector perspective, the computing hardware concept defied the trend and strengthened, the computing leasing concept saw partial gains, and the industrial gases concept fluctuated higher; on the downside, the power and coal sectors weakened.

Regarding ETF gains and losses, the Hong Kong Stock Connect 100 ETF Hua’an rose over 6%, and communication-related ETFs increased by over 2%.

Some brokerages stated that AI might be the biggest industry opportunity since cloud computing. From the hardware perspective, besides GPUs maintaining rapid growth, ASICs may become the second growth engine this year, and the performance of North American computing industry chains is expected to maintain high growth in the coming quarters. On the demand side, the growth of cloud revenue and capital expenditure from North American cloud providers resonate, with a clear AI development loop, still on an upward trajectory.

The current AI trend is clear, with domestic and foreign cloud providers increasing capital expenditure significantly. As the “shovel sellers” in the computing industry, the market size of the communication sector is expected to continue growing.

On the downside, ETFs in breeding and building materials sectors fell over 2%.

Some brokerages indicated that the trend of refined policy regulation will continue into 2026. Under the combined effects of policies and losses, capacity reduction is expected to accelerate gradually. The industry is currently at a critical stage of capacity reduction and a window for left-side deployment. Additionally, the pig breeding industry is at the bottom of the cycle, with policies accelerating the cleanup of inefficient capacity, providing support for the start of a new cycle.

In building materials, the industry’s profitability has bottomed out, and after years of price competition, there is no downward space left. This time, driven by anti-inflation policies, the industry has a strong demand for price increases and profit improvement. In 2025, multiple categories such as waterproofing, coatings, and gypsum boards will continue to issue price increase notices, and industry profitability is expected to bottom out, with leading companies’ profits expected to improve in 2026.

Daily Economic News