Fellow investors, the A-share market is set to open tomorrow.
During the 'National Day' holiday, global assets went wild! US stocks, Japanese stocks, and gold all hit record highs simultaneously.
This year, global capital markets have been quietly experiencing a silent flow of funds. New narratives are driving Chinese assets to lead globally!
In Q3, six out of the top seven performers in the global major asset classes were Chinese assets, with the other being gold.
Technology has become the strongest main theme in the market. A large number of leading technology companies have seen their share prices frequently reach new historical highs, and related ETFs have experienced explosive growth.
01
Technology-themed ETFs: The sharpest spear in this market trend
Amidst the wave of 'domestic substitution' and 'self-reliance,' the artificial intelligence infrastructure sector is enjoying a capital feast, with related ETFs emerging as the sharpest spear in this market trend.
In Q3, several technology-themed ETFs performed strongly, with the highest increase exceeding 80%!
Among them, the 5G Communications ETF rose by more than 80%; the SSE STAR 50 ETF, Growth Enterprise Market Artificial Intelligence ETF (China AMC), increased by over 60%; the Growth Enterprise Market 50 ETF (China AMC), Artificial Intelligence AI ETF, Chip ETF, SSE STAR Artificial Intelligence ETF (China AMC), and Growth Enterprise Market ETF (China AMC) rose by more than 50%; the SSE STAR 50 ETF, Semiconductor Materials ETF, SSE STAR Semiconductor ETF, and SSE STAR 100 ETF (China AMC) increased by over 40%.
The catalyst for this tech stock bull market was undoubtedly the debut of DeepSeekR1 earlier this year. This AI model, developed by a local Chinese team with open-source features and cost advantages, has opened new avenues for China's independent AI research and development.
Tech giants have heavily invested in AI, pushing the market to new heights. Alibaba announced it would continue to increase its RMB 380 billion investment in AI/cloud; Baidu’s AI cloud business achieved a 27% year-on-year growth despite macroeconomic pressures; JD.com has fully focused its AI strategy on reducing costs and improving efficiency in industrial applications.
Driven by the strong push of the 'Artificial Intelligence+' strategy, market sentiment has continued to heat up. According to GaveKal Research, by 2027, investments by China's three major internet companies in AI and cloud computing are expected to surge by 60%.
This technological feast, driven by technological breakthroughs, policy support, and industrial investment, has prompted a repricing of China's technology assets.
In August, sectors such as optical modules, communications, chips, and semiconductors performed exceptionally well. Since September, the tech sector has seen further broad-based momentum, reaching another peak!
02
The new energy theme, represented by solid-state batteries and energy storage, saw a major breakout in September!
CATL and Sungrow, both leading companies in the new energy sector, have seen their share prices reach all-time highs.
In the third quarter, China AMC's ChiNext New Energy ETF surged over 60%; the New Energy Vehicle ETF and New Energy ETF rose more than 50%.
On the news front, there is strong demand for energy storage cells, even leading to a situation where 'one cell is hard to find'.
Reports indicate that domestic demand for energy storage cells is exceptionally robust, with leading battery manufacturers stating that their factories are operating at full capacity, and some orders are already scheduled into early next year.
In August 2025, the tender procurement volume for energy storage systems/engineering, procurement, and construction reached 69.4 gigawatt-hours, setting a new record for the highest monthly volume.
Moreover, the newly issued 'Special Action Plan for Large-Scale Construction of New-Type Energy Storage,' jointly published by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA), set a target: By 2027, China’s installed capacity of new-type energy storage will exceed 180 gigawatts, expected to drive approximately RMB 250 billion in new project investments.
Solid-state batteries also received significant news, achieving breakthrough progress in addressing the two major challenges of range and safety. Tsinghua University officially announced a research achievement: increasing battery energy density from the typical 150-320 watt-hours per kilogram to 604 watt-hours per kilogram. Additionally, the battery passed needle penetration and high-temperature safety tests at 120 degrees Celsius while fully charged.
Amid multiple favorable factors, funds poured heavily into relevant ETFs in the third quarter.
Among these, the China AMC ChiNext New Energy ETF (159368) continued to attract significant capital inflows, with net inflows reaching RMB 9.36 billion over the past 20 days. This ETF covers leading manufacturers in energy storage and solid-state batteries, including CATL, Inovance Technology, Sungrow, EVE Energy, and Lead Intelligent Equipment. Investors can purchase it without needing ChiNext trading permissions.
The price fluctuation range of the China AMC ChiNext New Energy ETF is ±20%, offering high elasticity; its fees are low, with combined management and custodial fees totaling only 0.2%; its scale ranks first among similar products, making it a convenient tool for investing in the new energy sector.
03
Over 1.1675 trillion yuan in capital inflow! ETFs emerge as the 'dimension-reducing tool' for accessing Hong Kong stocks.
The Hong Kong stock market is currently experiencing an unprecedented wave of trading activity.
By the end of the third quarter, southbound capital's net purchases for the year had surpassed one trillion Hong Kong dollars, reaching HKD 1,167.515 billion, setting a new annual record since the launch of the Stock Connect mechanism in 2014, representing 145% of the total net purchases for the entire year of 2024.
Against the backdrop of technology narratives becoming a global market consensus, southbound capital has flowed into the Hong Kong technology sector.
In this wave of Hong Kong stock market activity, ETFs have become a 'dimension-reducing tool' for A-share investors to access Hong Kong equities.
In the third quarter, the Hang Seng Tech Index ETF (513180) recorded a net inflow of RMB 8.927 billion, while the Hang Seng Internet ETF (513330) saw a net inflow of RMB 5.517 billion.
Additionally, the Hong Kong Connect Financial ETF (513190), Hang Seng Pharmaceutical ETF (159892), Hong Kong SOE Dividend ETF (513910), Hang Seng ETF (513660), and Hong Kong Consumer ETF (513230) all received net inflows during the third quarter.
In September, the tech stocks in Hong Kong's stock market showed divergence.
In terms of the performance of major indices, the Hang Seng Internet and Technology Industry Index and the Hang Seng Tech Index outperformed the Stock Connect Hong Kong Internet Index and the Stock Connect Hong Kong Technology Index.
The outperformance of the Hang Seng Internet and Tech Indices over Stock Connect-related indices stems from differences in their constituent stocks:
Driven by new AI catalysts, internet-related companies in Hong Kong (such as Alibaba, Tencent, Baidu, NetEase, and Trip.com) have recently seen significantly stronger share price performance compared to technology manufacturing companies (e.g., Xiaomi Group, Wuxi AppTec, BeiGene, and other innovative pharmaceutical firms).
Among them, Trip.com, NetEase, and Baidu are not yet included in the Stock Connect scheme; hence, Stock Connect-related products do not include these companies.
On the other hand, non-Stock Connect ETFs such as the Hang Seng Internet ETF (513330) and the Hang Seng Tech Index ETF (513180) cover companies that are currently not part of the Stock Connect program.
Specifically, the constituent stocks of the Hang Seng Internet ETF (513330) include NetEase, Baidu, and Trip.com but exclude Xiaomi Group; meanwhile, the constituent stocks of the Hang Seng Tech Index ETF (513180) include NetEase and Baidu.
Overall, the trigger for this round of market momentum lies on one hand in the commencement of China’s industrial upgrade cycle, and on the other hand, in the global capital reassessment of Chinese assets.
Additionally, amidst a complex international landscape, gold has surged again!
04
During the National Day holiday, the price of gold surpassed the $4,000 threshold, setting a new all-time high.
Spot gold breached the $4,000 per ounce milestone, continuing to reach new highs, with a surge of nearly $1,400 per ounce year-to-date, representing an increase of over 52%.
COMEX gold also surpassed the historical $4,000-per-ounce mark, with an annual increase exceeding 45%.
Behind gold's sustained strength lies the market’s reassessment of the credibility of the U.S. dollar.
The U.S. government shutdown has undermined investor confidence in the fiscal stability of the United States, pressuring the dollar index in the short term, while gold has stood out among major global currencies.
Secondly, the shift in the Federal Reserve’s policy directly triggered gold trading. Gold is naturally a sensitive component of 'rate-cutting trades,' and changes in expectations for Federal Reserve interest rates have had a strong impact on gold.
In September, the Federal Reserve officially announced a rate cut, marking the end of a two-year tightening cycle. The market widely expects that October will bring the second rate cut of the year.
Moreover, central banks around the world are continuing to purchase gold as part of their 'de-dollarization' efforts, serving as another catalyst for the rise.
The share of gold in global central bank reserves has exceeded that of U.S. Treasury bonds for the first time in 29 years. As of August 2025, the total value of gold reserves held by central banks stands at approximately USD 4.5 trillion, far surpassing their USD 3.5 trillion holdings in U.S. Treasuries.
In the A-share market, domestic funds have continued to purchase gold through ETFs. The Gold ETF Huaxia (518850) has attracted RMB 3.358 billion in inflows this year, with an increase of over 41% year-to-date.
The Gold ETF Huaxia is anchored to physical gold and serves as a pure 'price-tracking tool.' Its underlying assets are gold spot contracts traded on the Shanghai Gold Exchange, directly reflecting fluctuations in gold prices, and it supports T+0 trading.
The Gold Stock ETF (159562) has also experienced a simultaneous increase in volume and price, surging 86% this year, with net inflows reaching RMB 1.656 billion.
The Gold Stock ETF invests in gold-related companies listed on both Hong Kong and mainland China stock exchanges. Its constituent stocks focus primarily on gold mining companies such as Zijin Mining, Shandong Gold, and CICC Gold, while also including a small number of jewelry retail companies like Laopu Gold and Chow Tai Fook.
Both the Gold ETF Huaxia (518850) and the Gold Stock ETF (159562) have a comprehensive fee rate of 0.2%, which is among the lowest in their category. For example, with an investment of RMB 500,000, holding the product for one year would save RMB 2,000 compared to similar products in the market with a typical fee rate of 0.6%.
Whether in technology, new energy, Hong Kong stocks, or gold, the rise in market trends and the flow of capital are often accompanied by ETFs, a highly efficient tool.
Investor attention towards ETFs has reached an unprecedented level, marking a milestone moment for the domestic ETF market!
05
Overview of Popular Sector ETFs in the Second Half of 2025
The total scale of domestic ETFs has broken through 5 trillion yuan, reaching 5.63 trillion yuan, setting a new historical record. China has surpassed Japan to become the largest ETF market in Asia.
Since the launch of the first domestic ETF in 2004, the time required for each additional trillion yuan in scale has significantly shortened. The first four trillions took nearly 14 years, 3 years, 10 months, and 8 months respectively, while growing from 4 trillion to 5 trillion only took 5 months, showing a marked acceleration. These figures reflect a profound transformation in the asset allocation logic of domestic investors—leveraging convenient tools to access broader market opportunities is becoming the mainstream choice.
For most investors, one important role of ETFs is: balanced allocation to obtain beta returns.
Taking the CSI 5G Communication Theme Index, the underlying index of the 5G Communication ETF (515050), as an example, the overall performance of the index outperformed the majority of individual stocks. In the first three quarters, this index surged by 85.44% cumulatively, outperforming 70% of its constituent stocks.
The flourishing development of ETFs mirrors the trajectory followed by developed capital markets. In mature overseas markets, ETFs occupy a pivotal position and have become a mainstream tool for large-scale capital and professional institutions.
Domestic investors are also transitioning from individual stock selection to tool-based allocation, further solidifying the habit of using ETFs for diversified asset allocation.
As a leader in the ETF field, the products under China AMC are highly representative.
Below is a compiled collection of China AMC’s ETF offerings:
The A-share market is set to open tomorrow. Wishing all investors success and a prosperous journey ahead!
