Driven by policies emphasizing "economic development as the central task" and "self-reliance and strength in science and technology," the A-share market showed a positive response in the early trading session, with indices opening higher and fluctuating upward. Market sentiment is expected to continue recovering.

In terms of indices, the STAR 50 rose over 2%, leading the broad-based indices. From the perspective of the moving average position, if the strength persists until the close, the STAR 50 Index is expected to break above the 20-day moving average, reversing the short-term weakening trend. Among its holdings, Shengyi Electronics surged by the 20% daily limit, while Lansus Technology, Bowei Storage, and Xinyuan Semiconductor rose over 5%.

Zhongyuan Securities believes that the memory cycle is currently continuing its upward trend. Internet companies such as Alibaba and ByteDance are persistently increasing capital expenditures related to AI infrastructure construction. The demand for AI and memory replacements is expected to drive domestic memory manufacturers to continuously expand their market share. It is recommended to pay attention to investment opportunities in the domestic memory industry chain.

The STAR 50 ETF (588000) tracks the STAR 50 Index, with the index's holdings comprising 70.55% in the electronics industry and 4.54% in the computer industry, totaling 75.09%. This aligns closely with the development direction of cutting-edge industries such as artificial intelligence and robotics. It also covers multiple sub-sectors, including medical devices, software development, and photovoltaic equipment, boasting high hard-tech content and promising future growth potential. Investors optimistic about the long-term development prospects of China's hard tech are advised to stay tuned.

Related ETF: STAR 50 ETF (588000).