The counterattack has arrived! On October 9, the A-share market staged a dramatic intraday reversal. The Shanghai Composite Index briefly lost the 3800-point mark in morning trading, while the ChiNext Index tumbled more than 3% to a new low for the year. In the afternoon, the three major indices rallied together and ultimately closed in positive territory. Total market turnover reached 1.92 trillion yuan, marking the second consecutive day of expanded volume.

Brokerages, absent from the spotlight for some time, took up the banner and led the defense, with the underlying index of the Brokerage ETF Huabao (512000) surging 2.46% in rapid fashion! Fintech quickly picked up the baton and struck with high elasticity, as the underlying index of the Fintech ETF Huabao (159851) jumped over 4% on heavy volume.

The AI sector showed a split between "software" and "hardware." AI application stocks exploded in the afternoon, with the underlying index of the Software Development ETF Huabao (159036) surging 3.97%, while the ChiNext Artificial Intelligence ETF Huabao (159363), which covers both optical module leaders and AI applications, staged a deep-V rebound with an amplitude of 6.27%.

Hong Kong AI stocks at low levels simultaneously staged a comeback, with Xiaomi Corporation-W leading gains at 9.72%, and the underlying index of the Hong Kong Internet ETF Huabao (513770) surging 3.67%. On the AI hardware side, the sector entered deep water before noon but fought to rescue itself in the afternoon. The STAR Chip Index dropped 5.34% before being pulled up, and the STAR Chip ETF Huabao (589190), which tracks that index, tenaciously closed flat.

Hong Kong hard tech also rebounded in tandem, with the underlying index of the Hong Kong Stock Connect Information Technology ETF Huabao (159131) closing up 2.11%. Geopolitical easing plus cooling rate hike expectations triggered unusual moves in gold stocks, with Western Gold hitting the daily limit. The nonferrous metals sector received a major boost, as the underlying index of the Nonferrous Metals ETF Huabao (159876), which captures leaders across the nonferrous metals industry, probed 2.85% higher and closed up 2.54%.

In the two trading days after the holiday, A-shares experienced both deep adjustment and volume-driven stabilization. How should investors view the road ahead? Huaxin Securities believes A-shares may see oscillating repair, with attention on trading volume and third-quarter earnings, seizing structural opportunities within the choppy market, continuing a barbell strategy of technology plus dividend, while also considering policy-beneficiary directions. Sectors to watch: 1) Tech repair (AI computing power, AI applications, AI power, innovative drugs, robotics, commercial aerospace, etc.); 2) Dividend defense (banks, coal, transportation, utilities, etc.); 3) Policy tailwinds (power grid equipment, building materials, etc.).

[ETF All-Knowing Hotspot Review] Below, we focus on the trading and fundamental situations of several thematic sectors including fintech, nonferrous metals, and Hong Kong internet.

Squat and Leap! After Probing Near Two-Year Lows, Fintech ETF (159851) Underlying Index Stages Comeback, Up Over 4%! Dazhihui, GEL Software Hit Daily Limit

The fintech sector staged a reversal rally, with widespread gains across the board, as sub-sectors such as internet finance and AI finance all strengthened. The Fintech ETF Huabao (159851) saw a notable surge in on-exchange popularity, with its underlying index probing a near two-year low in early trading before turning positive and climbing higher, closing up over 4%. Among individual names, Dazhihui and GEL Software hit the daily limit, Tianyang Technology rose over 12%, Digital Certification and Airong Software gained more than 8%, while eight stocks including Fortune Trend, Zhongke Jiangnan, Shuiyou Shares, Kelan Software, and Yingshisheng rose over 5%.

Combining recent market dynamics and capital behavior, the fintech sector is welcoming a dense cluster of multiple positive catalysts, and at the current juncture it is worth reassessing its allocation value from a structural perspective. Specifically, the sector is forming a three-dimensional resonance pattern of "positive catalysts—AI empowerment—oversold repair." First, positive news for brokerages is being released intensively, and the fintech direction is strengthening in tandem. International rating agencies have upgraded leading brokerages, cancellation-style buybacks have become routine, sci-tech innovation policies have landed, and brokerage valuations and business expectations have improved. As the core vehicle for brokerage IT and internet brokerages, fintech had been fully adjusted earlier and erupted in concentrated fashion in the afternoon, with Dazhihui hitting the daily limit and Hithink RoyalFlush and East Money following suit, as capital attention heated up.

Second, "AI plus finance" commercialization expectations are rising and could become the next-stage catalyst. The recent successful launch of China's first AI long-form drama marks that AI applications are moving from technical validation into large-scale commercial deployment. As one of the application scenarios where AI empowerment is most direct and the data foundation is most solid, fintech has broad room for penetration improvement in areas such as intelligent investment research, risk control modeling, and automated operations and maintenance, and is expected to capture excess elasticity in the wave of AI application diffusion.

Third, valuation repair momentum after the oversold condition is building. As of October 9, 2026, the fintech index has fallen more than 31% year-to-date, with adjustment in both time and space being relatively sufficient, and current valuations having fallen notably. Along with overall market rotation, capital attention toward low-valuation, high-beta sectors has picked up somewhat, and the momentum for an oversold rebound may have entered an accumulation phase. Once sentiment reverses, the upward elasticity of the fintech sector deserves close attention.

In terms of allocation tools, the Fintech ETF Huabao (159851) and its feeder funds (Class A 013477, Class C 013478) have an index heavily weighted in computer plus non-bank financials, covering popular themes such as internet brokerages, financial IT, cross-border payments, and AI applications, possessing both financial cycle and tech growth attributes.

Geopolitical Easing Plus Cooling Rate Hike Expectations, Spot Gold Tops $4,200! Western Gold Hits Daily Limit, Nonferrous Metals ETF Huabao (159876) Tracking Index Probes Up to 2.85%

The nonferrous metals sector staged an unusual afternoon rally, at one point leading the market, with the tracking index of the Nonferrous Metals ETF Huabao (159876), which captures leaders across the nonferrous metals industry, probing up to 2.85% and closing up 2.54%, strongly reclaiming its 5-day moving average. Along with the hot rally, capital attention increased significantly. The ETF's full-day turnover reached 98.66 million yuan, up 43% from the previous day, indicating red-hot trading! Among constituent stocks, gold leaders led gains notably, with Western Gold hitting the daily limit, Shanjin International rising over 7%, and names like China National Gold and Chifeng Gold posting large follow-on gains. In addition, Youyan New Materials rose over 7%, while Western Superconducting and Zijin Mining gained more than 4%.

Chart: Top 10 Gainers Among Nonferrous Metals ETF Huabao (159876) Constituents

With multiple pressures easing, spot gold topped the key $4,200 per ounce mark intraday: 1. Geopolitical easing: Trump stated on October 8 that the United States would not launch an attack on Iran before the November congressional midterm elections. The "oil price-inflation" concerns previously driven up by Middle East tensions have eased accordingly, and the tightening-expectation pressure hanging over precious metals has been significantly reduced. 2. A softer dollar: The dollar's previous advance paused temporarily, and the benchmark 10-year U.S. Treasury yield fell for a second consecutive trading day, providing more room for dollar-denominated gold. 3. Cooling rate hike expectations: The minutes of the Fed's September meeting showed a strong consensus for a rate hike before year-end, but no rush in October. Fed Governor Waller struck a dovish tone, saying there is still a need to raise rates to suppress inflation, but not necessarily at consecutive policy meetings. Guosheng Securities believes the Fed will most likely pause rate hikes in October.

Sprott's Director of Research and Investment Strategy Kenny Zhu pointed out that despite the sharp rise in bond yields, gold has held its range and continued to attract capital inflows, which shows there is allocation demand at current price levels. The gold rebound, in the short term, is timely relief brought by positive U.S.-Iran talks and a softer dollar; in the medium to long term, it is a structural rally jointly supported by global central bank gold purchases and the de-dollarization wave. The narrative of gold as a substitute for dollar credit is being validated by more and more data and facts, and the outlook for gold remains bullish.

* [Computing Power Era, Nonferrous Metals as the Foundation] The Nonferrous Metals ETF Huabao (159876) and its feeder funds (Class A: 017140, Class C: 017141) comprehensively cover industry leaders in copper, aluminum, rare earths, gold, lithium, tungsten, molybdenum, and tin, with heavyweight holdings including Zijin Mining, China Molybdenum, Northern Rare Earth, and Aluminum Corporation of China. The 2026 interim results show that all 60 constituent stocks achieved profitability, with nearly half of them posting year-on-year net profit attributable to parent growth of over 100%, providing solid support from strong fundamentals. Moreover, the number of constituent stocks is significantly greater than similar nonferrous indices (30-50 stocks), allowing better coverage of semiconductors and new materials. For investors bullish on both technology and nonferrous metals, this ETF is an efficient tool to gain one-click exposure to the nonferrous metals industry and capture the sector's beta rally.

Low-Level Hong Kong AI Stabilizes First, Hong Kong Internet ETF Huabao (513770) Underlying Index Surges 3.6%, Xiaomi Corporation-W Up Nearly 10%

Hong Kong stocks staged a major reversal, with the Hang Seng Tech Index closing up 3%, internet leaders strengthening collectively, Xiaomi Corporation-W leading gains at 9.72%, Tencent Holdings, Meituan-W, and NetEase rising over 3%, Alibaba-W gaining over 2%, and the Hong Kong Internet ETF Huabao (513770) rising on heavy volume, with its underlying index surging 3.67%.

Several internet leaders released positive fundamental signals. Xiaomi officially announced that in the first month of the Pengcheng series launch, locked orders exceeded 70,000 units, directly driving Xiaomi Auto's overall September deliveries to exceed 40,000 units for the first time. Galaxy Securities noted that Xiaomi Auto's second-quarter sales grew against the trend, losses narrowed quarter-on-quarter, and the extended-range new products Pengcheng N70/N90 have abundant potential, which is expected to continue driving the company's auto business improvement. Coupled with impressive AI model performance and notable progress in robotics capabilities, this is expected to bring new growth momentum.

In addition, Alibaba provided its latest quarterly business guidance, with Alibaba Cloud continuing to accelerate growth and e-commerce main business profit exceeding expectations. CICC expects Alibaba's fiscal 2027 second-quarter cloud computing revenue to grow 53% year-on-year, and fiscal 2028 cloud revenue to still maintain year-on-year growth of over 50%; it expects the cloud business EBITA margin this quarter to reach 13.3%, above market expectations.

Affected by overseas liquidity disruptions, the Hong Kong internet sector has recently pulled back notably. As of October 8, the CSI Hong Kong Stock Connect Internet Index's price-to-earnings ratio (TTM) was only 19.66 times, placing it at the 6.69th percentile over the past 10 years, highlighting its medium-to-long-term allocation value. With the continued development of AI and accelerating commercialization, the Hong Kong internet sector is expected to usher in strategic investment opportunities under the combined effect of earnings and valuation repair. The Hong Kong Internet ETF Huabao (513770) passively tracks the CSI Hong Kong Stock Connect Internet Index, heavily weighting internet leaders, with its top two holdings Tencent Holdings and Alibaba-W together accounting for over 30% weight and the top ten constituents together exceeding 80%, showing significant leader advantages, supporting intraday T+0 trading with good liquidity. Off-exchange investors may follow the feeder funds (Class A 017125, Class C 017126).

[Data Sources] CSI Index Company, Shanghai-Shenzhen-Hong Kong Stock Exchanges, iFind, etc.

[Institutional Views] Huaxin Securities, October 7, 2026, "October Top Ten Golden Stocks: October Strategy and Top Ten Golden Stocks." Two: Sprott, September 8, "Fiscal Credibility Weakened, Gold and Silver Prices Surge"; Guosheng Securities, September 17, "Test of Independence—Signals and Prospects of the Fed Restarting Rate Hikes." Three: Galaxy Securities, August 25, 260825 "Xiaomi Corporation-W (1810.HK): Auto Business Losses Narrow, AI Layout Deepens"; CICC, October 9, 2026, "Maintain Alibaba-W (09988) 'Outperform' Rating, Expect Second Fiscal Quarter Non-GAAP Net Profit Attributable to Parent to Exceed Expectations."

[Fund Fee Rates] ETF funds do not charge sales service fees. When investors subscribe to or redeem fund shares, the subscription and redemption agent broker may charge a commission of no more than 0.5%, which includes related fees charged by the stock exchange and registration institution. Fund fee rates are detailed in each fund's legal documents.

[Special Notice] According to the fund manager's assessment, the risk levels of ChiNext Artificial Intelligence ETF Huabao, STAR Chip ETF Huabao, Hong Kong stock ETFs and their feeder funds are all R4-medium-high risk, suitable for aggressive (C4) and above investors. The risk levels of the other funds mentioned in this article are all R3-medium risk, suitable for balanced (C3) and above investors. Please refer to the sales institution for suitability matching opinions.

[Risk Disclosure] Fintech ETF Huabao passively tracks the CSI Fintech Theme Index. The index base date is June 30, 2014, and the release date is June 22, 2017. The CSI Fintech Theme Index's annual historical returns from 2021 to 2025 were: 7.16%, -21.40%, 10.03%, 31.54%, 18.04%, and the corresponding annualized volatility over the same period was 24.92%, 29.41%, 27.07%, 53.47%, 34.54%. Hong Kong Internet ETF Huabao and its feeder funds passively track the CSI Hong Kong Stock Connect Internet Index. The index base date is December 30, 2016, and it was released on January 11, 2021. The CSI Hong Kong Stock Connect Internet Index's gains/losses over the past five complete years were: 2025, 27.02%; 2024, 23.04%; 2023, -24.74%; 2022, -23.01%; 2021, -36.61%; and the volatility over the past five complete years was: 2025, 33.60%; 2024, 43.49%; 2023, 32.09%; 2022, 49.01%; 2021, 38.72%. The composition of index constituents is adjusted from time to time according to the index compilation rules, and its back-tested historical performance does not predict the future performance of the index. The individual stocks mentioned in this article are merely objective illustrations of index constituents and are not recommendations of any individual stock, nor do they represent the fund manager or fund investment direction. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute any form of investment advice to readers, and the company shall not bear any responsibility for direct or indirect losses caused by the use of the content of this article. Investors should carefully read fund legal documents such as the "Fund Contract," "Prospectus," and "Fund Product Information Summary" to understand the risk-return characteristics of the fund and choose products suitable for their own risk tolerance. Past performance of a fund does not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Sales institutions (including the fund manager's direct sales institution and other sales institutions) conduct risk assessments of the above funds in accordance with relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. The suitability opinions of various sales institutions are not necessarily consistent, and the risk level evaluation results of fund products issued by fund sales institutions shall not be lower than the risk level evaluation results made by the fund manager. There are differences between the fund's risk-return characteristics in the fund contract and the fund's risk level due to different consideration factors. Investors should understand the fund's risk-return situation, carefully choose fund products in light of their own investment objectives, horizon, investment experience, and risk tolerance, and bear risks themselves. The registration of the above funds by the China Securities Regulatory Commission does not indicate that it has made a substantive judgment or guarantee on the investment value, market prospects, or returns of the above funds. Fund investment must be cautious. MACD golden cross signals have formed, and these stocks are rising well!