On Tuesday, September 1st, the A-share market experienced choppy adjustments, yet the fintech sector rallied against the broader trend, with digital renminbi and AI finance sub-sectors showing notable activity. The Fintech ETF Huabao (159851) attracted heightened on-exchange interest, with its tracking index closing up 1.88%. Notably, Chutianlong secured its sixth limit-up in eight trading days, while Hengbao Co., Ltd. and Cuiwei Co., Ltd. also hit the daily limit. Several other stocks, including Anshuo Information, Feitian Integrity, 四方精创, and Lakala, climbed over 5%, while AI application concept stocks like Tuors and Runhe Software advanced more than 2%.

Based on consolidated market information, several key shifts within the fintech sector deserve close attention. First, the digital economy theme is experiencing strong handover momentum. Chutianlong has claimed six limit-ups in eight sessions, with Hengbao Co., Ltd. and Cuiwei Co., Ltd. successively taking up the baton, creating healthy intra-sector rotation. The resolute capital flow indicates strong follow-through buying, and the wealth effect is visibly broadening, suggesting the theme's heat may persist. Second, AI plus finance is poised for sustained catalysts. The recent debut of China's first AI-produced long-form drama signals that commercialization pathways for AI applications are accelerating. This is expected to drive continued expansion in underlying demand for computing power and model invocation, and fintech, as a field where AI technology deeply integrates with financial services, is likely to benefit from the broader AI application diffusion wave. Third, oversold sectors present substantial catch-up demand. As of September 1, 2026, the fintech index remains down nearly 24% year-to-date, with technical corrections appearing largely complete and valuations having retreated significantly. As market risk appetite recovers, the momentum for oversold bounces could accumulate, leaving room for potential upside flexibility.

Chen Jianhua, fund manager of the Fintech ETF Huabao (159851), noted in his latest commentary that the fintech index has broken above its 60-day moving average for the first time this year. Intra-sector linkage is strengthening, and high-profile names in the digital economy space are rotating in an orderly manner, with capital movements potentially signaling upcoming catalysts. The sector remains deeply oversold for the year, and compared to other technology indices, its catch-up potential is pronounced. With technical breakouts combined with valuation advantages, the fintech sector offers both a margin of safety and offensive flexibility. He suggested investors consider accumulating positions at lower levels to capture swing trading opportunities.

For implementation tools, the Fintech ETF Huabao (159851) and its feeder funds (A-share class 013477, C-share class 013478) track an index heavily weighted toward computer software and non-bank financials, covering popular themes such as internet brokers, financial IT, cross-border payments, and AI applications, blending both financial cycle and tech growth attributes. Data sourced from Shanghai and Shenzhen stock exchanges and Wind.

Reminder: Market volatility may be significant in the near term, and short-term gains or losses do not predict future performance. Investors should make rational investment decisions based on their own capital situations and risk tolerance, paying close attention to position sizing and risk management. Regarding fee disclosures: for Fintech ETF subscriptions or redemptions, agent institutions may charge commissions up to 0.5%. On-exchange trading fees are subject to actual charges from securities firms, with no sales service fee levied. For the feeder fund A-share class, subscription fees are 1.00% for amounts below 1 million yuan, 0.60% for amounts between 1 million yuan (inclusive) and 2 million yuan, and 1,000 yuan per transaction for amounts of 2 million yuan (inclusive) or above. Redemption fees are 1.50% within 7 days, 0.50% from 7 days (inclusive) to 30 days, and 0.00% for 30 days (inclusive) and beyond, with no sales service fee applicable. The C-share class charges no subscription fee, a 1.50% redemption fee within 7 days, 0.00% for 7 days (inclusive) and beyond, and a 0.30% annual sales service fee.

Risk disclaimer: The Fintech ETF Huabao passively tracks the CSI Fintech Theme Index, which has a base date of June 30, 2014, and was published on June 22, 2017. Historical annual returns for the CSI Fintech Theme Index from 2021 to 2025 were 7.16%, -21.40%, 10.03%, 31.54%, and 18.04%, respectively, with corresponding annualized volatility of 24.92%, 29.41%, 27.07%, 53.47%, and 34.54%. Index constituent composition adjusts according to the index compilation rules, and back-tested historical performance does not guarantee future index results. Index constituents shown are for illustrative purposes only, and individual stock descriptions do not constitute investment advice of any form, nor do they represent holdings or trading activity of any fund under the manager's umbrella. The fund manager has assessed the fund's risk level as R3-Moderate, suitable for investors with a balanced (C3) profile or above. Any information presented herein, including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression, serves as reference only. Investors bear full responsibility for their own independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers of any form, nor do they bear liability for any direct or indirect losses arising from the use of the content. Fund investment carries risks. Past performance of a fund does not represent its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Fund investment should be undertaken with caution.