What happened
On September 7, A-share major indices closed higher, with the ChiNext up 3.41% and the STAR 50 up 2.42%, as AI hardware sectors like optical communications and semiconductor equipment performed strongly.
Domestic GPU maker Moore Threads hit a 20% limit-down in the morning after 25.7745 million restricted shares were unlocked, but the decline did not drag down the AI hardware rally. Stocks like 'Yi Zhongtian' (likely a group of stocks) rose over 7%, and ABF concept stocks Xingsen Technology and Shennan Circuits hit their limit-up.
Tech ETFs saw significant gains: Yinhua Communication ETF and ChinaAMC Communication ETF rose 6.36% and 6.28%, respectively, while several semiconductor equipment ETFs from fund houses like GF, Wanjia, and ChinaAMC gained over 3.8%.
Why it matters
The resilience of AI hardware stocks despite a major chip company's limit-down suggests strong market conviction in the sector's fundamentals, driven by demand for domestic computing power and AI infrastructure.
Fund flows indicate a clear preference for tech, with tech ETFs attracting 2.891 billion yuan in net inflows last Friday, far exceeding other sectors, highlighting investor confidence in tech as a medium-term main line.
The divergence between Moore Threads' drop and sector strength underscores that short-term volatility from share unlocks may be seen as a buying opportunity, with institutions viewing the company's scarcity value and domestic GPU logic as unchanged.
Key facts
Moore Threads' market value fell below 200 billion yuan after its 20% limit-down on September 7, following the unlock of 25.7745 million restricted shares.
In H1 2026, Moore Threads reported revenue of 1.736 billion yuan, up 147.42% year-on-year, with significantly narrowed losses.
As of end-June, 18 actively managed equity funds held Moore Threads as a top holding, totaling 1.614 million shares.
Last Friday, semiconductor-related ETFs tracking four indices (CSI All Share Semiconductor, STAR Chip, STAR Semiconductor Materials & Equipment, and Guozheng Chip) saw combined net inflows of 2.728 billion yuan.
What to watch next
Monitor the digestion of unlocked shares and Moore Threads' ability to deliver on earnings, as institutions suggest the short-term drop is driven by unlock and chip structure rather than fundamentals.
Watch whether tech sector inflows continue, with institutions recommending phased buying on dips given high US bond yields and ongoing market sentiment repair.
Observe if the 'golden autumn' rally extends, with fund managers suggesting balanced strategies across emerging tech, advanced manufacturing, and financials, while focusing on domestic substitution in upstream components and materials.