On September 8th, during the bull market consolidation period, market volatility intensified. The ChiNext index, which had staged a strong rebound on Friday (September 5th), suddenly experienced a sharp pullback in morning trading, falling over 2% at one point. AI computing power leading stocks led the decline, with the ChiNext Artificial Intelligence ETF (159363), which has the largest scale and outstanding liquidity among similar indices, dropping over 7.5% intraday.

In the afternoon session, AI computing power stocks narrowed their losses, and the ChiNext index warmed up somewhat, closing down 0.84% for the day. The Shanghai Composite Index rose 0.38% to close at 3,826.84 points. Total turnover for both markets reached 2.42 trillion yuan.

The ChiNext Artificial Intelligence ETF (159363) closed down 4.39%, with funds once again aggressively buying on the dip, recording net subscriptions of 314 million shares in a single day. Over the previous 20 trading days, cumulative inflows had already exceeded 1.9 billion yuan.

Analysts believe that the current market volatility essentially reflects rotation demand driven by overheated sentiment in AI computing power stocks in the early stages. However, the core logic of the AI theme has not been damaged or disproven, and it remains the market's primary focus in the medium to long term, potentially offering opportunities to accumulate "cheap chips" on dips.

Meanwhile, as funds seek low-position rotation opportunities, sectors that previously lagged in gains but maintain strong fundamental logic also deserve close attention. From market performance, chemicals and healthcare sectors show strong momentum to take the lead.

Chemicals led gains across both markets, with the Chemical ETF (516020) surging nearly 4% intraday and closing up 3.71%, with popularity continuing to rise recently. On one hand, the sector has been depressed for an extended period, significantly underperforming the broader market. On the other hand, "anti-involution" policy expectations continue to heat up, raising market expectations for rapid industry recovery under policy guidance.

Healthcare maintained strong performance throughout the day, with medical devices leading gains. The largest healthcare ETF in A-shares (512170) closed up 3.88%, reaching a new high since December 12, 2023. Institutions suggest that Q3 2025 may usher in a cyclical turning point for the medical device sector, presenting attractive left-side positioning opportunities.

Innovative drug stocks experienced narrow consolidation. Notably, the Hong Kong Stock Connect Innovative Drug ETF (520880) saw its underlying Hang Seng Hong Kong Stock Connect Innovative Drug Select Index revision officially take effect today. The biggest change in this revision is the clear exclusion of CXOs (Contract Research Organizations), making it a truly 100% pure innovative drug pharmaceutical index.

Since the beginning of this year, the Hong Kong Stock Connect Innovative Drug ETF (520880) underlying index has shown maximum offensive capability among similar indices. As of September 5th, its year-to-date cumulative gain reached 119.75%, leading all innovative drug indices.

**ETF Spotlight Review: Focus on Chemicals, Innovative Drugs, and ChiNext Artificial Intelligence**

**Chemicals Lead Market Gains, Attracting Over 6.2 Billion Yuan in Single Day! Chemical ETF (516020) Surges Nearly 4% Intraday with Capital Inflows!**

The chemical sector surged throughout the day. By market close, the basic chemicals sector ranked first in gains among 30 CITIC primary industries! The Chemical ETF (516020), reflecting overall chemical sector performance, rose almost unilaterally throughout the day, with intraday prices reaching nearly 4% gains and closing up 3.71%.

Among constituent stocks, lithium battery, fluorochemical, and petrochemical segments saw leading gains. By market close, Tinci Materials and Do-Fluoride Chemicals both hit daily limits, while Tongkun Group and Huafeng Chemical surged over 8%. Hongda and Enjie followed with gains exceeding 7%.

On the capital front, the chemical sector continued attracting funds! Data shows that by market close, the basic chemicals sector received net inflows of 6.22 billion yuan from main funds, ranking second among 30 CITIC primary industries. The popular Chemical ETF (516020) also saw continuous inflows. Data indicates that as of the previous trading day (September 5th), the Chemical ETF had accumulated inflows of 442 million yuan over the past 5 trading days and 981 million yuan over the past 10 trading days.

On the news front for sub-sectors, lithium hexafluorophosphate prices have risen recently, climbing from 50,000 yuan/ton in early August to the current 57,000 yuan/ton. A research report states that lithium hexafluorophosphate supply and demand are already in tight balance, and if industry growth continues next year, supply shortages may emerge.

The report also indicates that current lithium hexafluorophosphate prices are expected to continue rising. Considering that leading energy storage manufacturers have sufficient orders for this year and next, strong energy storage production scheduling is expected to continue. From surface supply-demand dynamics, lithium hexafluorophosphate will remain in tight balance over the coming months, and considering continued demand growth next year, supply shortages may emerge. Overall, they expect lithium hexafluorophosphate price increases to have good sustainability.

From a valuation perspective, the chemical sector remains at low valuations. Data shows that as of the previous trading day (September 5th), the Chemical ETF (516020) underlying index's price-to-book ratio was 2.23 times, at the 36.27% percentile over the past 10 years, highlighting medium to long-term allocation value.

Looking ahead, analysts point out that anti-involution policies are expected to reshape China's chemical industry, with subsequent measures likely to significantly slow global chemical capacity expansion. China's chemical industry has abundant net operating cash flow, and once expansion slows, potential dividend yields will substantially improve, potentially transforming from "cash burners" to "cash cows." Simultaneously, supply-side changes will bring about industry recovery, with chemical stocks expected to combine high elasticity with high dividend advantages.

**Major Upgrade: 100% Innovative Drug Content! Hong Kong Stock Connect Innovative Drug ETF (520880) Trades at Premium with Strong Volume**

Following strong gains the previous day, innovative drug stocks entered consolidation.

A-share innovative drug stocks showed mixed performance, with Fosun Pharma surging 6.26% while 3SBio fell 6%. The Pharmaceutical ETF (562050), heavily weighted in innovative drugs, turned positive in the afternoon and closed higher, reaching a new closing high!

Hong Kong innovative drug stocks also showed divergence. The Hong Kong Stock Connect Innovative Drug ETF (520880), with innovative drug content upgraded to 100%, opened higher before pulling back, then recovered in the afternoon, closing down just 0.15% with a full-day amplitude of 3.43% and heavy trading volume of 758 million yuan.

The sustained premium trading of the Hong Kong Stock Connect Innovative Drug ETF (520880) throughout the day drew attention. Combined with increased trading volume, this suggests large capital inflows on dips. Over the previous 4 days, nearly 100 million yuan had already been added consecutively.

Among constituent stocks, Pharmacosset-B and Neumiracle-B led gains strongly, closing up 20.13% and 10.9% respectively. On the news front, both stocks were included in Hong Kong Stock Connect today, as well as in the constituent stocks of the Hong Kong Stock Connect Innovative Drug ETF (520880) underlying index. On the declining side, CStone Pharmaceuticals fell 7.89% and Innovent Biologics dropped 2.52%.

Key focus on the "purification" revision of the Hong Kong Stock Connect Innovative Drug ETF (520880) underlying index taking effect.

According to previous announcements from Hang Seng Indices, the "purification" revision of the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index tracked by the Hong Kong Stock Connect Innovative Drug ETF (520880) officially took effect on September 8th. This index revision features three major changes: clear exclusion of CXOs; expanded selection scope to all Hong Kong Stock Connect companies; adoption of liquidity discount coefficients for weighting.

This means the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index has now become a CXO-free, 100% pure innovative drug index. From this revision onward, small-cap potential stocks have opportunities for earlier index inclusion, while constituents with excellent liquidity will receive higher weightings.

According to the September 8th creation/redemption list for the Hong Kong Stock Connect Innovative Drug ETF (520880), its underlying index saw 14 additions and 6 deletions, bringing total constituents to 37 stocks. Deleted constituents included 4 CXO-focused companies and 2 medical service companies including GenScript Biotech and Jinxin Fertility.

All newly added constituents are innovative drug R&D companies, including industry giant Hengrui Medicine with over $15 billion in BD transaction value this year, leading domestic innovative drug companies like RemeGen and Junshi Biosciences, as well as innovative drug potential stars with market caps under 10 billion yuan such as Shanghai Fosun Pharmaceutical, Boan Biotechnology, and Shandong Xinhua Pharmaceutical.

Since the beginning of this year, the Hong Kong Stock Connect Innovative Drug ETF (520880) underlying index has shown maximum offensive capability among similar indices. As of September 3rd, its year-to-date cumulative gain reached 118.95%, leading all innovative drug indices.

Following the exclusion of CXOs and upgrade to a pure innovative drug index, the Hong Kong Stock Connect Innovative Drug ETF (520880) underlying index will more accurately reflect innovative drug industry development trends and is expected to demonstrate stronger offensive capability in subsequent innovative drug market movements.

**Optical Module Leaders Decline, ETF 159363 Drops Over 4% with Capital Buying, Institutions: Emotional Adjustment, Medium-Long Term Industry Fundamentals Unchanged!**

Optical modules and other AI computing hardware declined again, with the ChiNext Artificial Intelligence ETF, containing over 51% optical modules content, falling over 4% throughout the day. Most heavyweight stocks declined, with Eoptolink leading losses at nearly 10%, Innolight dropping over 9%, and TFC Optical Communication falling over 7%. Over 28 stocks rose independently, with China Television Media, Xiechang Data, and Feili Information among multiple stocks gaining around 5%.

Among popular ETFs, the ChiNext Artificial Intelligence ETF (159363), with the largest scale and outstanding liquidity among similar indices, fluctuated and pulled back throughout the day, dropping over 7.5% intraday before narrowing closing losses to 4.39%, with daily turnover reaching 1.682 billion yuan. Funds bought aggressively on dips, with net subscriptions of 314 million shares in a single day. Over the previous 20 days, cumulative additions had exceeded 1.9 billion yuan, demonstrating medium to long-term confidence in the ChiNext artificial intelligence sector.

Despite frequent volatility in optical module-centered AI computing hardware recently, institutions remain firmly optimistic about future opportunities. Analysts point out that large overseas orders and strong demand in AI computing demonstrate that optical module industry fundamentals remain solid, with the AI-driven computing expansion cycle far from over. Short-term emotional market adjustments actually provide better allocation opportunities for investors, with continued firm optimism for the optical module sector in the medium to long term.

The analysis continues with three key points: 1) Overseas giants accelerating deployment with AI computing arms race escalating; 2) Optical module demand logic unchanged with continued prosperity; 3) Short-term adjustments stemming from emotional volatility without affecting long-term trends.

In conclusion, analysts maintain that overseas AI giants' continued investment in computing infrastructure, cloud providers' significant capex increases, and commercial monetization loop formation all confirm industry high prosperity and solid fundamentals. Short-term adjustments mainly stem from emotional fluctuations and previous gains, without affecting medium-long term optical module demand logic driven by AI. Current adjustments actually provide positioning opportunities. They continue to favor the computing power sector and firmly recommend computing power industry chain companies, such as optical module industry leaders.

To capture AI computing opportunities centered on optical modules, key focus is recommended on the market's first ChiNext Artificial Intelligence ETF (159363) and its feeder funds (Class A 023407, Class C 023408), with the underlying index allocating over 70% to computing power and over 20% to AI applications, efficiently capturing AI theme performance while focusing on optical module leaders, with optical module content exceeding 51%. (As of August 31, 2025)

Note: "Market's first" refers to the first ETF tracking the ChiNext Artificial Intelligence Index.

**Special Reminder**: Recent market volatility may be significant, and short-term gains/losses do not predict future performance. Investors must make rational investment decisions based on their financial situation and risk tolerance, paying close attention to position and risk management.

**Risk Disclosure**: [Standard risk disclosure language about the various ETFs mentioned, their underlying indices, and investment risks]