Huawei Mate30 stimulates the surge in concept stocks, and the first technology ETF "packages" the daily limit bull stocks with one click
Relying on Huawei's strong appeal in core technology fields, the "Huawei industry chain" is gradually overshadowing the "Apple industry chain" and is expected to become a highly imaginative core asset in the next ten years. On the night of September 19th, Beijing time, Huawei Consumer Business CEO Yu Chengdong released the Mate 30 series flagship mobile phone in Munich, Germany. Stimulated by this good news, many Huawei concept stocks rose sharply. The only and first leading technology ETF in China - Huabao Technology Leading ETF, the fund abbreviation is "Technology ETF", the trading code is 515000, and 19 of the 50 constituent stocks are covered. Among Huawei concept stocks, 18 have seen their share prices rise in the past two trading days, and 8 have increased by more than 5%, boosting the fund's net value to continue to rise.
Following the release of the first 5G mobile phone Mate 20 5G in July 2019, Huawei has now launched the "second generation true 5G mobile phone", which for the first time integrates the processor and 5G baseband into one, supporting There are two networking methods, NSA and SA, supporting dual-SIM dual standby. 5G and 4G cards can be online at the same time. This puts pressure on Apple, which was the first to release iPhone 11 on September 13. Regarding the Mate 30 series, there are already brokerage analysts calling out predictions: Huawei Mate 30 series is expected to ship more than 20 million units in 2019.
Stimulated by the good news of Huawei’s release of new Mate 30 series phones, related Huawei concept stocks have surged in the past two trading days. On September 20, many stocks reached their daily limit during the session. Wind data statistics show that there are currently 106 A-share Huawei concept stocks. In the past two trading days, 84 stocks have increased in stock price, accounting for nearly 80%. Among them, the share prices of 6 Huawei concept stocks increased by more than 10% in just 2 trading days.
The outstanding performance of these stocks directly boosts the performance of related technology theme ETFs. Take the recently popular Huabao Technology Leading ETF as an example. The fund code is 515000. Among its latest 50 constituent stocks, there are 19 Huawei concept stocks. Wind data statistics show that on the two trading days of September 19 and 20, the share prices of 18 Huawei concept stocks rose, and 8 rose by more than 5%, namely Sunwoda, Han's Laser, Shanghai Electronics Co., Ltd., NavInfo , Goodix Technology, Tongfu Microelectronics, Shennan Circuit, Qianfang Technology. Since the beginning of this year, the performance of the above-mentioned 19 Huawei concept stocks has also far exceeded expectations, among which Shanghai Electric Co., Ltd. has increased as much as 304.35% during the year.
In fact, in addition to the launch of annual flagship products by Apple and Huawei, which stimulated the strength of related concept stocks, benefiting from the dual benefits of recent policies and funds, technology stocks have generally strengthened significantly. Wind data statistics show that as of September 20, 2019, the underlying index of the leading technology ETF, the CSI Technology Leading Index, has increased by as much as 60.19% during the year, exceeding the performance of 26 of the 28 primary industry indexes in the same period. Far exceeding the performance of broad-based indexes such as the CSI 300, SSE 50, CSI 500, and GEM Index over the same period. Not only this year, but also extending the time period to the past 1, 2, and 5 years, the performance of the CSI Technology Leading Index has also significantly outperformed the CSI 300, CSI 500, and GEM Index. Starting from the base date of June 29, 2012, as of September 20, 2019, the CSI Technology Leading Index has increased by as much as 225.82%. During the same period, the GEM Index, Shanghai Stock Exchange 50, CSI 300, and CSI 500 have increased by 225.82%. The increases were 134.63%, 73.42%, 59.88%, and 49.94% respectively, showing that the index’s strategy can achieve relatively good long-term return performance by superimposing active screening of valuation, profitability, and growth.
Benefiting from the strength of technology stocks, related technology theme funds continue to receive funding. Taking the Huabao Technology Leading ETF as an example, since its listing on August 16, the share of Technology Leading ETF has increased by nearly 4 billion units. Based on the average intraday transaction price of 1.11 yuan since its listing, the Technology Leading ETF has been listed for a short period of time. The net inflow of funds in just 25 trading days was as high as 4.438 billion yuan, making it the stock ETF with the largest inflow of funds in the Shanghai and Shenzhen stock exchanges.
Based on the global leadership of 5G technology, the market is generally optimistic that Huawei’s industrial chain will become the biggest investment opportunity for A-shares in the next 5 to 10 years.
Guotai Junan Research Report analyzed that the lack of innovative elements and the lack of 5G functions have cast a shadow on the future prospects of Apple and its industry chain. Things are changing. In the 4G era, look to Apple, and in the 5G era, look to Huawei. In the past ten years, Apple, with a market value of one trillion US dollars, has given birth to the rapid development of the entire industry chain, and dozens of companies in the A-share market alone have taken advantage of this to become big bull stocks tenfold in the past ten years. In the future, domestic independent brand supply chains led by Huawei may usher in a "golden" investment period of the same size.
Professionals analyze that compared with direct investment in Huawei concept technology stocks, investing in technology-themed funds such as Huabao Technology ETF that cover many "Huawei concept stocks" can reduce investment risks while enjoying The rising dividends from technology stocks are obviously more suitable for ordinary investors.