ETF Review | A-share market surges over 18% in 2025, hitting a 10-year high; Communication ETF and Communication Equipment ETF soar 120% for the year.

Gelonghui December 31 | The A-share market closed for trading in 2025, with the Shanghai Composite Index ending up 0.09%, marking an 11-day winning streak and achieving an annual gain of 18.41%, the highest in 10 years; the Shenzhen Component Index fell 0.58%, with an annual increase of 29.87%; the ChiNext Index dropped 1.23%, surging 49.57% for the year. The STAR 50 Index rose 35.92% over the year. The A-share market wrapped up 2025, closing with the Shanghai Composite Index up 0.09%, recording its 11th consecutive daily gain, while the Northbound 50 Index increased by 38.8% over the year. Throughout the year, sectors such as computing power hardware, non-ferrous metals, banking, battery supply chains, innovative pharmaceuticals, commercial aerospace, robotics, and others rotated to propel the Shanghai Composite above the 4,000-point mark at one point. Among concept sectors, the CPO Index saw the largest gain, rising more than 180% cumulatively. In terms of ETFs, the commercial aerospace sector continued to rally, with the Satellite ETFs from Fuguo Fund, Zhaoshang Fund’s Satellite Industry ETF, E Fund’s Satellite ETF, GF Fund’s Satellite ETF, and others all rising over 7%. The low-altitude economy sector showed strong performance, with the General Aviation ETF South and Huatai Bai Rui Fund’s General Aviation ETF both gaining 4.6%. The AI application sector advanced, with China AMC’s Culture & Media ETF rising 3.52%. On an annual basis, AI hardware and non-ferrous metal theme ETFs performed notably well, with Guotai Fund’s Communication ETF, Fuguo Fund’s Telecommunication Equipment ETF, and Guotai Fund’s Mining ETF gaining 125.81%, 121.37%, and 106.11% respectively in 2025. The ChiNext Artificial Intelligence ETF from Hua Bao, the Non-Ferrous Metal Mining ETF from Zhaoshang, and Wan Jia Fund’s Industrial Non-Ferrous Metals ETF all doubled. The Jinying Zengyi Money ETF, which surged yesterday, fell 4.59%. The AI hardware sector pulled back, with the ChiNext Growth ETF and the Dual Innovation ETF dropping 2%. The energy storage battery sector declined, with the Energy Storage Battery ETF falling 1.97%.