The ChinaAMC Xinchuan ETF (562030), heavily weighted in the software development sector, surged 7.75%.

Today (May 6), the Xinchuang ETF Huabao (562030), which is heavily invested in the software development sector, gapped up and surged sharply, with its on-exchange price soaring by 7.75% and currently up 7.21%. Among its constituent stocks, Eastcompeace, Hygon Information, Zoyi Information, and Jiangbolong hit the 20% daily limit up, while stocks like Biwin Storage and Sugon followed with gains.

How do Xinchuang policies benefit the software sector?

1. Policy-driven: The 2027 full replacement deadline is forcing the pace, making 2026 a big year for order releases. SASAC Document No. 79 clearly requires that by the end of 2027, all central and local state-owned enterprises must achieve 100% Xinchuang replacement of their information systems. As the deadline approaches, Xinchuang replacement is expanding from party and government office systems to eight key industries including finance, telecommunications, and energy, and deepening from peripheral systems to core business systems. The refinement of government procurement demand standards further solidifies the replacement pace.

2. Funding guarantee: The expansion of ultra-long-term special treasury bonds and the debt resolution plan have been implemented, providing funding security for Xinchuang procurement. The ultra-long-term special treasury bonds have been continuously expanded from 2024 to 2026 (1 trillion yuan → 1.3 trillion yuan). The funds are directed towards the "two major areas" (national major strategies/security) and "two new" areas, with Xinchuang being a key security area. The implementation of local debt resolution plans releases budgetary space, providing funding for Xinchuang procurement.

3. Market potential: According to CCID Consulting forecasts, China's Xinchuang industry scale is expected to exceed 1.8 trillion yuan in 2026, with a compound annual growth rate of 28.5% from 2023 to 2026. EO Intelligence believes that by 2029, the market size of China's Xinchuang industry is expected to approach 6 trillion yuan.

4. Performance verification: From policy expectations to real corporate orders and performance. For example, the 2025 annual report of Seeyon shows that the contract value from central and state-owned enterprise clients increased by 13.6% year-on-year. (Index constituent stocks are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund managed by the fund manager. Investing involves risks. Please refer to the risk warnings at the end of this material before investing.)

CSC Financial points out that over 70% of the growth in the software sector is contributed by Xinchuang, with 2026 entering a peak period for performance realization; Xinchuang is the core growth engine for the sector, with AI providing elastic supplementation. (CSC Financial 2025.11.9 "Computer Industry 2026 Investment Strategy Report: Software Gearing Up, On the Eve of the Wave") CITIC Securities believes that Xinchuang is the core beta of the software sector, dominating the sector's prosperity and valuation center; AI is the core alpha, driving elasticity and growth potential. (CITIC Securities 2025.9.7 "AI Leads, Xinchuang Builds the Foundation")

Guotai Junan Securities points out that the Xinchuang industry has three characteristics: recovery in prosperity, improvement in product performance, and leadership by domestic computing power. The current localization rates for hardware and software are still relatively low. In the next two years, influenced by the "2+8+N" policy, related orders are expected to accelerate, and segments like domestic computing power can drive the development of the entire Xinchuang chain.

【Rooted in Self-Reliance and Controllability, Safeguarding National Security】

The Xinchuang ETF Huabao (562030) and its feeder funds (Class A: 024050; Class C: 024051), which focus on the field of independent and controllable information technology, passively track the CSI Xinchuang Index. The index covers core segments of the Xinchuang industry chain such as basic hardware, basic software, application software, information security, and external equipment, and possesses the characteristics of high growth and high elasticity.

Note: The previous on-exchange abbreviation for Xinchuang ETF Huabao (562030) was Xinchuang ETF Fund.

Risk Warning: Xinchuang ETF Huabao passively tracks the CSI Xinchuang Index. The base date of this index is 2017.12.29, and it was released on 2012.12.21. The composition of the index's constituent stocks is adjusted according to its compilation rules. Its back-tested historical performance does not indicate the future performance of the index. The index constituent stocks and individual stocks mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund managed by the fund manager. The fund manager has assessed the risk level of this fund as R3 - Medium Risk, suitable for Balanced (C3) and above investors. Suitability matching opinions should be based on the sales institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors are responsible for any investment decisions they make independently. Furthermore, any views, analysis, and forecasts in this article do not constitute investment advice of any form to readers, nor are they responsible for any direct or indirect losses caused by the use of the content of this article. Fund investment involves risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment should be approached with caution.