Finance Associated Press, October 21 (Reporter Wu Yuqi): On Monday, the semiconductor chip sector continued the uptrend from last week, with the Wend Semiconductor Industry Index up 3.22%, the Wend Chip Concept Index up 3.40%. In terms of individual stocks, H.B. Fuller, Tech Semiconductors, JH Tech Micro, Dongxin Corporation, among others, hit the daily limit up, Semiconductor Manufacturing International Corporation (SMIC) once approached the daily limit up, reaching a historical high during the day. However, in afternoon trading, there was significant selling pressure on semiconductor and chip stocks at the opening, and by the closing bell, several individual stocks had pulled back from their intraday highs.

Influenced by the strong rise in the sector, today many semiconductor chip ETFs are mostly in the red, with ETFs related to chips such as integrated circuits, photovoltaics, etc., also rising significantly.

On the news front, as of yesterday, 15 A-share semiconductor industry listed companies including Allwinner Technology, JHICC, Will Semiconductor, Suntwist, have disclosed their performance forecasts for the first three quarters of 2024, with generally positive results.

Not only today, recently, semiconductor chip-related ETFs have also become the most dazzling stars, with many products showing impressive gains. The Science and Technology Innovation Semiconductor Chip ETF under Southern Fund has even taken the top spot in terms of year-to-date gains.

Most semiconductor chip ETFs are in the red today.

Looking at today's performance, the ETF with the largest increase is GF SSE STAR Market Growth ETF, with a single-day increase of 8.42%, intraday highest increase once surpassing 15%. From the constituent stocks tracking this index, companies like Zhejiang Lante Optics, Lifetech Electronics, Juchip Technology, among others, in the semiconductor sector have shown significant gains today, all rising by more than 5%.

ETFs tracking semiconductor chip indices are mostly in the red. By the closing bell, Dongfang CSI Chip Industry ETF rose by 5.29%, Penghua Guozheng Semiconductor Chip ETF by 4.72%, Tianhong CSI Chip Industry ETF by 4.62%, Guangfa Fund, Huaxia Fund, ICBC Credit Suisse Fund, which also track the Guozheng Semiconductor Chip Index, have all risen by over 4%.

However, Finance and Economics Society reporters also noticed that while semiconductor chip stocks were rising, the ETF tracking the Shanghai Stock Exchange's xinxingchanye chip sector experienced a slight decline. Jia Shi, Nanfang, Huaan, and Boshi fund products fell by 0.56%, 0.74%, 0.92%, and 1.32%, respectively.

At the same time, the strength of semiconductors also drove the rise of integrated circuit-related ETFs. For example, the Guotai CSI All Shares Integrated Circuit ETF rose by 5.39% today, while the Jiashi CSI All Shares Integrated Circuit ETF rose by 4.81%. Photovoltaic ETFs performed well today, with the Huatai CSI Photovoltaic Industry ETF and the Tianhong CSI Photovoltaic Industry ETF both gaining over 4% on the day.

In addition, today's significant gainers include animation and gaming, such as the Huatai Bairui CSI Animation ETF, Guotai CSI Animation & Gaming ETF, Huaxia CSI Animation & Gaming ETF, all with gains of over 4%.

Looking at the weekly gains, multiple semiconductor chip ETFs have risen by over 10%. Among them, the Southern Star Board Semiconductor Chip ETF had the highest increase in the past week among similar ETFs, at 11.10%. The Tianhong CSI Chip Industry ETF followed closely with a 10.97% increase. A total of 14 semiconductor chip ETFs saw weekly gains of over 10%, with the rest also in the green.

Taking a longer-term view, the ETF with the highest increase this year is also related to chips, with the Southern Star Board Semiconductor Chip ETF taking the top spot with a 63.70% increase this year. The Jiashi CSI All Shares Integrated Circuit ETF related to semiconductor chips ranked second, up 58.02% year-to-date, followed by Boshi Star Board Semiconductor Chip ETF in third place, up 50.50% this year. Multiple semiconductor chip ETFs have shown significant gains this year, such as the East Fortune CSI Chip Industry ETF, Boshi CSI Semiconductor Industry ETF, Tianhong CSI Chip Industry ETF, all with gains of over 40%.

Some semiconductor chip ETFs are attracting capital inflows.

From the perspective of capital flow, many semiconductor chip ETFs have also been heavily bought by investors. In the past week, the Jiashi CSI Star Chip ETF had 1.731 billion shares bought, while the Penghua Guozheng Semiconductor Chip ETF had 0.718 billion shares bought, and the remaining 11 related ETFs were bought in small amounts.

However, some investors have sold at high levels, such as Guolian'an CSI All Share Semiconductor ETF which decreased by 1.28 billion shares in the past week, and Huaxia Guozheng Semiconductor Chip ETF also decreased by 0.804 billion shares.

Looking at the situation this year, semiconductor chip-related ETFs are still favored by funds, with a total of 15 ETFs increasing in size. Among them, Jiashi CSI Star Chip ETF saw the largest increase in size, reaching 15.018 billion shares, while Huaan CSI Star Chip ETF, Tianhong CSI Chip Industry ETF, and E Fund CSI Chip Industry ETF increased by over 0.6 billion shares this year, and the remaining multiple ETFs saw slight increases.

It is worth noting that the mentioned Guolian'an CSI All Share Semiconductor ETF has reduced its shares by 6.704 billion this year, but the product has seen a rise of 25.25% within the year, indicating potential profit-taking by investors. A similar situation is seen in the Fuguo CES Semiconductor Chip ETF, with a reduction of 5.706 billion shares this year and a 25.08% increase within the product.

Many institutions are bullish on the future trend of the semiconductor sector.

Dongwu Fund previously pointed out that the semiconductor industry related to computing power and end-user devices may undergo industrial upgrades during the cyclical recovery period. Especially as end-user devices become more prevalent in various AIOT products, domestic companies in this sector are expected to benefit. Looking ahead, high-end manufacturing in China is expected to accelerate gradually, with trends towards the expansion of AI+, the semiconductor industry chain, smart driving, humanoid robots entering an increasingly positive phase. The impact of AI+ on the manufacturing industry is also growing, and the trends in emerging industries are becoming more apparent.

Furong Fund's Li Yanzheng believes that the recent significant increase in the semiconductor sector is partly due to event-driven emotional catalysts and partly due to the improvement in the sector's fundamentals.

He stated, "After a long period of decline in fundamentals, the supply-demand relationship and pricing situation in the semiconductor sector have shown significant marginal improvement at the bottom end of the range. Many companies in various sub-sectors have achieved historically high sales volumes in the second quarter, and some have achieved record quarterly sales. We believe that such fundamental improvements are currently evident in some areas but have not yet reached broad impact. Overall, the sector's improvement can still be expected, with the direction already turning positive."

Zhang Yan from Agricultural Bank of China Fund Management Co., Ltd. pointed out that there are differences in the current positions of various subdivided sectors of the semiconductor industry cycle. Logic chips and storage subcategories with high relevance to AI continue to be strong, corresponding to the supply and demand imbalance of advanced processes and advanced packaging capacity. Other sectors benefit from replenishing inventory, with most cycles in a phase of gentle recovery. "We expect edge AI to become a new growth driver for the continued upward trend of the semiconductor industry."