Global risk appetite is rebounding, with attention to the relatively high elasticity of the Sci-Tech Innovation 50.

As of 2:00 PM on April 1, the Sci-Tech Innovation 50 rose 2.89%, performing strongly among broad-based indices.

Looking at the entire month of March, the Sci-Tech Innovation 50 saw a larger decline due to its high volatility and high valuation characteristics. If geopolitical conflicts are eased, based on historical experience, the Sci-Tech Innovation 50 often shows an even more pronounced rebound in terms of volatility recovery. Even if the macro environment fails to meet expectations and brings stagflation shocks to the global economy and China’s manufacturing industry, the Sci-Tech Innovation 50—also benefiting from relatively independent fundamentals and room for domestic substitution to catch up—may still see a turnaround in the medium term.

On a medium-term basis, demand for computing power is shifting from model training to the inference end. With the domestic chip supply chain adapting through technological iterations and domestic large-model fit, growth in downstream demand may accelerate. Based on financial report data, the performance of the overall technology supply chain has diverged: sectors with better performance, such as equipment, have higher concentration within the Sci-Tech Innovation 50 index. In addition, the semiconductor weight in the Sci-Tech Innovation 50 is about 70%. Besides the corresponding industry indices, the Sci-Tech Innovation 50 is also a high-quality choice to capture the dividend from the development of hard technologies.

Related products: Sci-Tech Innovation 50 ETF by E Fund (588080), Connect A/C (011608/011609). They closely track the SSE Sci-Tech Innovation Board 50 Index, bringing together leading companies across the full industrial chain such as AI chips, semiconductor equipment, and materials. They are an excellent option to seize both the current trading timing and structural opportunities within AI.