On Monday, August 31st, the AI application sector celebrated a landmark achievement as the AI-produced series Journey to the West: The Later Chapters made its broadcast debut, triggering a wave of enthusiasm across related stocks. The ChiNext Artificial Intelligence ETF (159363) saw its underlying index climb more than 2% during afternoon trading, maintaining elevated levels of investor interest and market momentum.

Among the standout performers, Mango Excellent Media and ChineseAll both hit their 20% daily price limits, while Huace Film & TV advanced over 15%, and Sigmastar Technology gained more than 12%. Additional notable movers including Wondershare Technology, Allwinner Technology, Kunlun Tech, Sangfor Technologies, and Epoint Digital each rose by more than 7%. Meanwhile, the optical module CPO segment showed relatively weaker performance, with Zhongji Innolight and Tianfu Communication closing with modest declines.

On the news front, Mango TV's production, recognized as China's first AI-generated long-form drama to air on satellite television, premiered on August 31st. The initial "Flower Fruit Mountain" installment consists of five episodes, launching at 18:00 on Mango TV and 20:00 on Hunan Satellite TV. The series was entirely created using AIGC technology without any human actors, and it stands as the first "produce-while-broadcast" production following the recent regulatory guidelines. With 30 episodes planned for the first season and a prime-time television slot secured, this debut marks a significant step in AIGC's evolution from experimental demonstrations to industrialized production.

According to China Merchants Securities, AI short dramas benefit from a clear business model that suits rapid domestic expansion and has already gained traction internationally. As the industry undergoes consolidation, overseas markets open further, and content quality continues to improve, AI applications are well-positioned to maintain their leading role, with analysts expressing strong optimism for the AI short drama and film production supply chain.

On the optical module front, Guosheng Securities noted that leading manufacturers Zhongji Innolight and Eoptolink together hold potential deliverable module volumes exceeding 28 million units. Their ample inventory reserves provide solid material support for sustained shipments through the remainder of this year and into next, further validating the delivery reliability of top-tier companies amid strong industry tailwinds. The brokerage remains positive on the interim earnings season for the communications sector and continues to recommend companies in the computing power supply chain, including optical module industry leaders.

For investors seeking exposure to both the optical module theme and AI applications, the ChiNext Artificial Intelligence ETF Huabao (159363) and its off-exchange feeder funds (Class A: 023407, Class C: 023408) offer a focused approach. The fund's underlying index allocates nearly 40% of its weight to Zhongji Innolight, Eoptolink, and Tianfu Communication, positioning it as a core vehicle for AI computing power exposure. As of August 21, 2026, based on Guozheng Index data, the top three holdings of the ChiNext Artificial Intelligence Index are Eoptolink (13.77%), Zhongji Innolight (13.17%), and Tianfu Communication (10.56%).

It is important to note that market volatility may remain elevated in the near term, and short-term price movements do not predict future performance. Investors are advised to make decisions based on their own financial circumstances and risk tolerance, with careful attention to position sizing and risk management.

Regarding fund fees: for the exchange-traded fund, subscription and redemption agents may charge commissions of up to 0.5% per transaction, while secondary market trading costs depend on the securities firm and no sales service fees apply. For the feeder funds, Class C shares charge no subscription fee and no redemption fee for holdings of seven days or more, though a 1.5% redemption fee applies within the first seven days, plus a 0.3% annual sales service fee. Class A shares carry a 1% subscription fee for amounts under 1 million yuan, 0.6% for amounts between 1 and 2 million yuan, and a flat 1,000 yuan fee for amounts of 2 million yuan or above, with the same redemption fee structure and no sales service fee.

The fund is rated as R4 (medium-high risk) by the fund manager, suitable for aggressive investors (C4 and above), and investors should refer to their sales institutions for suitability matching recommendations. The ChiNext Artificial Intelligence ETF passively tracks the ChiNext Artificial Intelligence Index, which has a base date of December 28, 2018, and was officially published on July 11, 2024. The index recorded annual returns of 17.57%, -34.52%, 47.83%, 38.44%, and 106.35% from 2021 through 2025, with corresponding annualized volatility of 23.73%, 27.34%, 38.02%, 45.42%, and 41.1% over the same periods. Index constituents are adjusted according to the index methodology, and historical backtested performance does not guarantee future results.

The information presented here, including individual stocks, comments, forecasts, and other expressions, is for reference only and does not constitute investment advice of any form, nor does it represent the holdings or trading activities of any fund managed by the fund manager. Investors bear full responsibility for their own investment decisions. Any views, analyses, or predictions in this article do not constitute investment recommendations, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investing carries risks, and past performance does not indicate future returns. The performance of other funds managed by the fund manager does not guarantee the performance of this fund.