Today, the A-share market fluctuated and closed higher. At the close, the Shanghai Composite Index rose 0.23% to 4120.28 points, the Shenzhen Component Index gained 1.82%, the Science and Technology Innovation Board Composite Index increased 2.11%, and the ChiNext Index surged 2.84%, once again hitting a new record high. The total trading volume for A-shares for the day reached 3.62 trillion yuan, expanding further from the previous day's volume of 3.31 trillion yuan. Market performance was clearly divergent, with technology remaining the focal point, while over 4,000 stocks across the market declined. By sector, storage, AI hardware, and related areas led the gains, while securities, building materials, and aviation also showed strong performance. Gold, chemicals, and non-ferrous metals weakened.
The AI hardware sector saw a broad rally today, with the Xinchuang ETF (159537) leading the gains, up 6.47%.
The technology sector received a significant positive catalyst as memory chip giant Micron Technology reported its Q3 2026 fiscal year results, which significantly exceeded expectations.
Micron Technology achieved revenue of $41.456 billion in Q3 FY2026, a record high, representing a year-on-year increase of 345.72% and a sequential increase of 73.75%, substantially surpassing prior guidance ($32.75-$34.25 billion). Its gross margin reached a high of 84.9%, up 46 percentage points year-on-year and 10 percentage points sequentially, also exceeding prior guidance (81%). Furthermore, Micron projected Q4 revenue to be between $49 billion and $51 billion, significantly above market expectations of $43.24 billion.
The better-than-expected results from Micron alleviated market concerns over the high capital expenditures for AI infrastructure, broadly boosting risk appetite for global technology and AI sectors. Japanese and South Korean stock markets surged in response. Japan's Nikkei 225 index closed up 4.61%, reaching a new record closing high. South Korea's KOSPI index closed up 5.42%, with memory manufacturer SK Hynix soaring 13.06% for the day. The A-share AI hardware supply chain gained across the board. The Xinchuang ETF (159537) led with a 6.47% gain, while the Chip ETF (512760), the Integrated Circuit ETF (159546), and the Sci-Tech Innovation Board Chip Design ETF (589260) all rose more than 5%.
Storage is the fundamental hardware supporting the digital economy and AI computing power. The surge in demand for high-end storage driven by large AI models has led to a supply shortage, pushing storage prices higher in this cycle. It is expected that tight supply in the storage market will persist beyond 2027, with industry NAND shipments anticipated to continue growing in 2026. Micron CEO Sanjay Mehrotra stated that the AI era is elevating the importance of memory and storage, and this trend is still in its very early stages.
The storage sector combines cyclical pricing power and profit elasticity with long-term growth value, offering broad space for domestic substitution. It is expected that domestic storage chip and memory module manufacturers will continue to benefit. While the storage sector has seen significant short-term gains, coupled with potential profit-taking demand around the listing of leading companies, market volatility warrants attention. As of June 24, 2026, the Xinchuang ETF (159537) has a high exposure of 37.23% to memory modules, storage chips, and memory interface chips. Interested investors may monitor it and consider opportunities for positioning.
The Securities ETF (512880) closed up 3.42% today.
Today, the securities sector performed strongly. The fundamental performance of the securities sector continues to improve, with its current Return on Equity (ROE) having rebounded to a relatively high level in recent years. From Q3 2024 to Q1 2026, the combined net profit of 42 listed securities firms increased by a cumulative 93%. The sector's annualized ROE improved from 4.3% to 7.4%, with a broad recovery across the four core businesses: brokerage, investment banking, asset management, and proprietary trading.
From a medium to long-term perspective, the trend of household asset allocation shifting towards financial markets has strong certainty. Driven by a prolonged low-interest-rate environment, household funds are continuously moving from bank deposits and the real estate market into the equity market. The accelerated entry of high-net-worth individuals into the market is expected to consistently bolster revenues from pillar businesses for brokerages, such as brokerage services, wealth management, and margin financing. Concurrently, the scale of investment banking business is steadily recovering and expanding. The overseas expansion of leading securities firms is contributing to high earnings growth, providing solid support for the sector's fundamentals in the medium to long term.
Supportive policies continue to be released. The recent Lujiazui Forum outlined multiple measures to support the capital market, which are expected to continuously broaden the scope of products and services for securities firms. These measures vigorously promote the expansion of the Science and Technology Innovation Board, support hard-tech companies in accessing the capital market, and also express the intention to maintain neutral and stable market liquidity, providing a policy backstop for the long-term stable development of the A-share market and the securities industry.
The valuation level of the securities sector remains at a historically low position. The Securities ETF (512880) tracks the CSI All Share Securities Companies Index. The current Price-to-Book (P/B) ratio of the index is only at the 22.94th percentile over the past decade, indicating ample room for valuation recovery.
The securities sector is driven by a combination of market beta elasticity, continuous earnings delivery, and deepening capital market reforms, highlighting its investment value. As trading concentration in the technology sector continues to rise, market funds are showing a need to rotate from high-valuation to low-valuation areas. The securities sector is characterized by high ROE and low P/B, making its risk-reward profile increasingly prominent. Interested investors may continue to monitor the Securities ETF (512880).
Risk Disclosure: Investors should fully understand the differences between regular fixed-amount investment plans and savings methods like lump-sum deposits. Regular fixed-amount investing is a simple way to guide investors towards long-term investing and averaging investment costs. However, it does not avoid the inherent risks of fund investment, cannot guarantee investors will obtain returns, and is not an equivalent substitute for savings. Whether stock ETFs, LOFs, or structured funds, they are all types of securities investment funds with relatively high expected risk and expected returns. Their expected returns and risk levels are higher than those of hybrid funds, bond funds, and money market funds. Funds investing in stocks listed on the Science and Technology Innovation Board and the ChiNext Board will face specific risks arising from differences in investment targets, market systems, and trading rules. Investors are advised to take note. The short-term price changes of sectors/funds mentioned are provided only as supplementary material for analysis in this article, for reference only, and do not constitute a guarantee of fund performance. The short-term performance of individual stocks mentioned is for reference only, does not constitute stock recommendations, nor does it constitute a prediction or guarantee of fund performance. The above views are for reference only and do not constitute investment advice or promises. If you wish to purchase related fund products, please pay attention to relevant regulations on investor suitability management, complete a risk assessment in advance, and purchase fund products with a risk level matching your own risk tolerance based on the assessment. Funds carry risks, investment requires caution.