During intraday trading on September 4, the digital yuan track triggered a wave of limit-up moves, with the fintech sector rallying sharply. Fintech ETF Huabao (159851) saw heightened on-screen attention as its underlying index surged 5%.

Among the standout performers, Chutian Dragon Co.,Ltd. (003040) delivered its seventh limit-up in 11 trading days, while Hengbao Co., Ltd. recorded its third limit-up in four sessions. Shenzhen Forms Syntron Information Co.,Ltd. (300468) and Yingfang Software both hit the 20% daily limit, and Cuiwei Co., Ltd. also reached the limit-up threshold. Additionally, Lakala Payment, Yusys Technologies, Zhongke Jiangnan, and Lingshi Software all advanced more than 8%.

Aggregating market intelligence, several key shifts in the fintech sector merit close attention. First, the digital economy theme continues to see solid follow-through. Chutian Dragon has now claimed seven limit-ups in 11 sessions, with Hengbao and Cuiwei quickly taking up the baton. This has fostered healthy rotation within the sector, with capital showing firm commitment to carry momentum forward. The wealth effect is clearly broadening, suggesting the theme's heat may persist.

Second, the AI-plus-finance angle is poised for sustained catalysts. The recent debut of China's first AI-produced long-form drama signals that AI application commercialization is accelerating along a viable path. This is expected to drive continued expansion in underlying demand for computing power and model invocation. As a field where AI technology deeply converges with financial services, fintech stands to benefit from the broader wave of AI application proliferation.

Third, oversold sectors exhibit strong catch-up demand. As of September 1, 2026, the fintech index was still down nearly 24% year-to-date, with technical corrections having run their course and valuations retreating noticeably. With market risk appetite recovering, the momentum for oversold rebounds could be building, and the upside elasticity is worth anticipating.

Chen Jianhua, fund manager of Fintech ETF Huabao (159851), recently noted that the fintech index has reclaimed its 60-day moving average for the first time in 2026. Intra-sector linkages are strengthening, and high-profile digital economy themes are rotating in an orderly fashion. Capital movements may foreshadow potential catalysts. Given the sector's severe year-to-date oversold condition, its catch-up demand relative to other tech indices is pronounced. With technical breakouts combining with valuation troughs, the fintech sector offers both a margin of safety and offensive elasticity. Investors are advised to consider accumulating positions on dips and capture swing trading opportunities.

For positioning, Fintech ETF Huabao (159851) and its feeder funds (Class A: 013477, Class C: 013478) heavily weight computer and non-bank financial stocks in the index. The portfolio covers popular themes including internet brokerages, financial IT, cross-border payments, and AI applications, blending financial cycle characteristics with tech growth attributes.

Data sources include the Shanghai and Shenzhen stock exchanges and Wind. Reminder: recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should make rational decisions based on their own capital positions and risk tolerance, with close attention to position sizing and risk management. For ETF fee details: when subscribing or redeeming fund shares, the subscription/redemption agency may charge commissions at a rate not exceeding 0.5%. On-exchange trading fees are subject to actual brokerage charges, with no sales service fees imposed. For feeder fund fees: Huabao CSI Fintech Theme ETF Feeder Fund Class A charges a subscription fee of 1.00% for amounts below RMB 1 million, 0.60% for amounts between RMB 1 million (inclusive) and 2 million, and RMB 1,000 per transaction for amounts of RMB 2 million (inclusive) or above. Redemption fees are 1.50% for holding periods under 7 days, 0.50% for 7 days (inclusive) to 30 days, and 0.00% for 30 days (inclusive) or longer, with no sales service fee. Class C charges no subscription fee; redemption fees are 1.50% for holding periods under 7 days and 0.00% for 7 days (inclusive) or longer, with an annual sales service fee of 0.30%.

Risk disclosure: Fintech ETF Huabao passively tracks the CSI Fintech Theme Index, with a base date of June 30, 2014, and a publication date of June 22, 2017. The index's historical annual returns for 2021-2025 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 stocks adjust according to the index compilation rules, and back-tested historical performance does not indicate future index movements. The index constituents mentioned in this article are for illustrative purposes only, and individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the management company. The fund manager assesses this fund's risk level as R3-moderate risk, suitable for balanced (C3) and above investors. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only, and investors bear full responsibility for their own investment decisions. Furthermore, any opinions, analyses, or forecasts in this article do not constitute investment advice to readers and shall not be held liable for any direct or indirect losses arising from the use of this content. Fund investment carries risks; past performance does not guarantee future results, and the performance of other funds managed by the manager does not guarantee the performance of this fund. Investors should exercise caution in fund investment.