Market review and key observations: Last week, the A-share market displayed a divergent trend, with the CSI 300 falling 0.21%, the CSI 500 rising 0.52%, the CSI 1000 gaining 1.36%, the ChiNext 50 dropping 3.94%, and the STAR 50 edging up 0.52%. In terms of trading activity, the average daily turnover in the A-share market was approximately RMB 1.91 trillion, indicating a pullback in market liquidity. Growth-oriented technology sectors became the core battleground for capital, with the AI computing power supply chain's prosperity continuing to be validated. Sectors such as electronics, communications, and computers saw substantial net capital inflows from main funds.
Interim report results have confirmed the high prosperity of core optical communication segments, with optical components and network equipment exceeding expectations. The optical module and optical chip sectors maintained the trend of accelerating revenue growth and improving profit margins from 2024 and 2025 into the first half of 2026. Looking ahead, the focus should be on the earnings delivery of the AI computing power supply chain and the pace of incremental capital inflows. It is advisable to continue monitoring the ChiNext 50 Index, which heavily weights core technology leaders like AI computing power, semiconductor equipment, and new energy batteries. The ChiNext board serves as a direct financing platform for growth-oriented innovative startups. In terms of sector weights, the ChiNext 50 Index concentrates on four new quality productive forces' tracks: information technology, new energy, fintech, and pharmaceuticals, reflecting a pure tech-growth attribute.
Chart: Four major tracks of the ChiNext 50 Index
Source: Wind, Hua An Fund, as of 2026-8-28
The ChiNext 50 Index: Chasing "Light," Identifying "New," and Excavating "Gold." From a horizontal comparison, the ChiNext 50 Index's exposure to optical modules, new energy batteries, and fintech is superior to the ChiNext Index and mainstream broad-based indices.
Sector Views on Key Weights of ChiNext 50 Index (399673.SZ):
Communications
Last week, the communications sector underperformed the broader market with intensified internal divergence. On one hand, the policy tone setting for the "next-generation communication network" has raised the industry's medium-to-long-term prosperity outlook. On the other hand, optical communications faced headwinds from sentiment and external disturbances. However, leading companies showed positive signals in pricing and delivery, with interim reports revealing notable fundamental resilience. Attention must also be paid to the potential suppression of high-valuation segments due to expectations of Fed rate hikes and declining risk appetite, as well as the safety margin issue given the industry's valuation is at historically high levels.
In the first half of 2026, the communications industry continued to deliver strong performance, driven by the global expansion of AI computing infrastructure and the sustained progress of domestic new information infrastructure construction. Core optical communication segments maintained high prosperity, leading to an overall improvement in sector profitability. AI computing demand has spurred simultaneous volume and price increases in high-speed optical components, optical fiber, and cable, significantly raising gross margins. For instance, gross margins for optical fiber at some leading companies jumped from around 40% in the first quarter to roughly 60% in the second quarter, illustrating the continuous improvement in earnings quality driven by product structure upgrades and structural demand pull. Data indicates that revenue and net profits for companies in the optical communication sector generally achieved double-digit growth, with most firms seeing net profit growth outpace revenue growth, reflecting the increased share of high-value-added products. It is recommended to continue focusing on the optical module, optical component, and CPO supply chains, with the ChiNext 50 Index's "optical" content reaching 30%.
New Energy Batteries
Last week, the new energy sector saw internal rotation and overall weakness, but new energy, energy storage, and power grids are still considered medium-term prosperity themes. In August, retail sales of new energy vehicles are projected to be around 1.04 million units, implying a penetration rate of roughly 65.8%. Weekly orders ticked up about 2% month-on-month, providing support for the battery chain during its peak season. Regarding raw materials, the "strong reality vs. weak expectations" game in lithium carbonate intensified, with the spot-futures spread widening. Near-term inventory drawdowns and "Golden September" stockpiling underpin prices around the RMB 150,000/ton level, while high warehouse receipts and distant oversupply pressure cap upside. Lithium hexafluorophosphate continued its upward trajectory, raising electrolyte costs. In the photovoltaic chain, prices are diverging: polysilicon remains high, silicon wafers and cells have pulled back, and modules face slight increases due to upstream costs and silver prices, squeezing supply chain profitability. Separately, some institutions report a domestic polysilicon price hike of about 6.1% this week. Regarding energy storage and power grids, the marketization mechanism for domestic energy storage is advancing. EPC tenders in the first three weeks of August totaled 46.5 GWh, a 57% year-on-year increase. AIDC power distribution and power equipment continue to benefit from AI investment catalysts. Looking ahead to September, the "valuation switch" following the peak interim reporting season and seasonal lithium price trends could become the main trading narrative. It is advisable to focus on leading lithium battery and energy storage companies, residential/commercial & industrial storage, and select defensive assets.
Electronics
The electronics sector experienced overall consolidation last week. Overseas heavyweight earnings beats and improved guidance lifted expectations for the "numerator" side: Nvidia's Q2 FY2027 revenue was approximately USD 96.2 billion (up 106% year-on-year), with Q3 revenue guidance around USD 108 billion. It also provided its first medium-term outlook for FY2028, projecting revenue growth of about 70%, reinforcing the multi-year prosperity logic for AI computing investment. Domestically, macro data and profit validation were strong: from January to July, electronics industry profits surged 1.1 times year-on-year. Notably, the integrated circuit segment, including computing and memory chips, saw profits skyrocket by 18.5 times year-on-year, contributing over 80% of the electronics industry's profit growth. This provides solid backing for the "price hike chain" and "domestic substitution" narratives. Nvidia's impressive results and guidance triggered a volume-driven rally in the sector, although Friday saw some gains pared due to external interest rate and liquidity concerns. Structurally, capital rotated quickly between the computing hardware chain and the "price hike chain" (memory/PCB/equipment), with the market's pricing logic increasingly anchored on earnings and order validation.
(The above stocks are cited as examples only and do not constitute investment advice.)
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