On November 13, China's A-share market saw a broad rally, with the Shanghai Composite Index hitting a decade-high. The combined trading volume of Shanghai and Shenzhen exchanges exceeded 2 trillion yuan, up 96.9 billion yuan from the previous session.
Technology stocks led the charge, with the AI-focused ETF (589520) rising nearly 2% intraday, attracting 315.9 million yuan in inflows over five days. Catalysts included Alibaba's secretive "Qianwen" project, positioning itself as a ChatGPT competitor in the global AI race.
Meanwhile, undervalued sectors like chemicals and new energy gained momentum. Lithium hexafluorophosphate prices surged amid tight supply, while China's National Energy Administration issued guidelines to boost integrated renewable energy development, potentially driving 250 billion yuan in direct investments. The Chemicals ETF (516020) soared 3.95%, hitting its highest close since March 2023. Smart EV ETF (516380) and Green Energy ETF (562010) also climbed 3.83% and 3.41%, respectively.
In Hong Kong, biotech stocks staged a strong comeback. The HK Connect Biotech ETF (520880) surged 4.6%, closing at its daily high. Analysts suggest the sector may be entering a second wave of growth.
Notably, the HK Tech ETF (159131), the first ETF tracking Hong Kong-listed semiconductor stocks, debuted with a 1.11% gain and 80 million yuan in turnover. Its index comprises 70% hardware and 30% software firms, with SMIC as its top holding at 20%.
Looking ahead, China Securities (CSC) highlighted 2026 as a pivotal year for China's economic transformation, driven by: 1. Strategic countermeasures amid shifting global dynamics. 2. Emerging industries like AI, biotech, and new energy. 3. Domestic consumption as a key growth driver. 4. Fiscal and monetary policy easing, with further rate cuts. 5. Stabilizing risks, including a bottoming-out property sector.
CSC recommends focusing on cutting-edge tech (AI, biotech, quantum) and strategic resources (rare earths, aerospace materials).
**Biotech Sector Highlights** The HK Connect Biotech ETF (520880) jumped 4.66%, outperforming major indices. Key holdings like 3SBio (+10.18%) and BeiGene (+7.71%) led gains. Technical indicators, including a bullish MACD, signal a potential trend reversal.
Catalysts include BeiGene's Q3 profit turnaround (1.14 billion yuan vs. loss YoY) and China's new commercial insurance reimbursement pathway for innovative drugs, effective January 2026. Year-to-date, China's biotech outbound licensing deals surpassed $100 billion, underscoring global competitiveness.
**Chemicals Sector Momentum** The Chemicals ETF (516020) surged 3.95%, hitting multi-year highs. Lithium battery materials like Tianci Materials and Do-Fluoride rallied on tight supply and policy tailwinds. CSC forecasts a 2026 demand surge in energy storage, with battery orders backlogged into mid-2026.
**Metals Sector Outperformance** The Metals Leaders ETF (159876) rose 3.9%, with five constituents hitting limit-up. The sector has gained 75.9% YTD, driven by strong earnings and demand from renewables/AI. CSC labels this cycle a "new productivity bull market," with copper, cobalt, and lithium poised for further gains.
*Data as of November 13, 2025. ETFs carry risks; investors should assess suitability.*