The underlying index of the Semiconductor Equipment ETF E Fund (159558) rose nearly 1% in the morning session, aiming for a 3-day winning streak.

As of 9:55, the CSI Semiconductor Materials & Equipment Theme Index (931743) rose 0.87%, extending its winning streak to three days; key weights included AMEC (+1%), NAURA (+1.92%), Changchuan Technology (-0.85%), Piotech (+3.5%), Hwatsing Technology (-0.15%), Skyverse (-0.6%), Kinwong Electronic (+1.94%), Huafeng Microelectronics (-0.8%), Kingsemi (+2.5%), and NSIG (+5.04%).

The E Fund Semiconductor Equipment ETF (159558) continues to see strong capital inflows. As of the previous trading day, the fund recorded net inflows of RMB 619mn over the past week, RMB 1.715bn over the past month, and RMB 14.797bn over the past quarter.

In news developments, official data showed that China's industrial value-added above designated size grew 4.5% YoY in July, with a seasonally adjusted MoM increase of 0.11%. By sector, value-added grew 109.3% in integrated circuit manufacturing, 38.3% in aircraft manufacturing, 34.8% in electronic special equipment manufacturing, and 30.8% in electronic special materials manufacturing. By product, AI-driven demand pushed output up 35.3% for sensors, 30.2% for memory chips, 23.4% for electronic components, and 21.1% for optical fibers.

Zhongtai Securities noted that data indicates the global semiconductor market is experiencing explosive growth driven by AI, with the market size projected to surpass $1tn by 2026 and climb to $2tn by 2030, far exceeding the $500bn scale of the previous cycle. Rapid iteration of large AI models serves as the core driver of industry growth; declining token costs and significantly increased usage, coupled with multi-model competition, continue to fuel incremental demand for computing power.

The E Fund Semiconductor Equipment ETF (159558) closely tracks the CSI Semiconductor Materials & Equipment Theme Index, which focuses on the semiconductor equipment and materials sectors, offering strong elasticity amid the trend of domestic substitution.

E Fund Asset Management is a leading comprehensive asset manager in China with over 20 years of professional expertise in index investing. Its index product line comprehensively covers mainstream broad-based indices, spans multiple industry sectors, includes cross-border and cross-market indices, and reaches more than 10 exchanges globally. Supported by a professional index research and investment team with extensive experience in product design and investment management.

The E Fund Semiconductor Equipment ETF (159558) provides an efficient tool for one-click exposure to this high-growth sector, allowing investors to capture industry trend dividends amidst volatility. OTC investors may also consider the feeder funds Class A/C (021893/ 021894).