Core Insights - The iShares U.S. Technology ETF (IYW) is a passively managed ETF launched on May 15, 2000, providing broad exposure to the Technology - Broad segment of the equity market [1] - The ETF has gained popularity among retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1] Fund Overview - Sponsored by Blackrock, IYW has amassed over $23.04 billion in assets, making it one of the largest ETFs in the Technology - Broad segment [3] - The ETF aims to match the performance of the Dow Jones U.S. Technology Index before fees and expenses [3] Sector and Holdings - The ETF has a significant allocation of approximately 88.9% in the Information Technology sector, with Telecom and Industrials following [6] - Nvidia Corp (NVDA) constitutes about 16.1% of total assets, with Microsoft Corp (MSFT) and Apple Inc (AAPL) also among the top holdings; the top 10 holdings represent about 64.28% of total assets [7] Performance Metrics - Year-to-date, IYW has increased by roughly 14.76%, and it is up about 31.94% over the last 12 months as of August 12, 2025 [8] - The ETF has traded between $122.57 and $183.92 in the past 52 weeks, with a beta of 1.24 and a standard deviation of 25.46% for the trailing three-year period, indicating medium risk [8] Cost Structure - The annual operating expenses for IYW are 0.39%, making it one of the cheaper options in the ETF space, with a 12-month trailing dividend yield of 0.18% [5] Alternatives - Other ETFs in the technology sector include the Technology Select Sector SPDR ETF (XLK) with $84.55 billion in assets and an expense ratio of 0.08%, and the Vanguard Information Technology ETF (VGT) with $99.45 billion in assets and an expense ratio of 0.09% [11]

Group 1 - The computer ETF (159998) experienced a slight decline of 0.97% with a trading volume exceeding 31 million yuan, maintaining the top position among similar products [1] - The ETF saw a net inflow of over 18 million yuan yesterday, with four out of the last five trading days showing net inflows, totaling over 230 million yuan [1] - As of July 21, the latest scale of the computer ETF reached 3.557 billion yuan, marking a historical high in both scale and shares at 3.854 billion [1] Group 2 - The cloud computing ETF (517390) fell by 1.09% and closely tracks the CSI Cloud Computing Industry Index, which includes companies involved in internet services and computing hardware [2] - The AI and office software industry is at a transformative turning point, driven by breakthroughs in large model technology, enhancing productivity and reshaping market dynamics [3] - The computer and software development sector is expected to see growth in various sub-sectors, including AI computing and software outsourcing, with improvements anticipated in the second half of the year due to new technologies and policy support [3]

Investment Rating - The report maintains a "Recommendation" rating for the industry [5] Core Insights - The ongoing technological competition among major countries necessitates the localization of AI computing power in China. Although H20 has been approved for sale, long-term localization remains a priority. The development of the chip and underlying software ecosystem will be crucial for the domestic AI industry. The new round of global AI "arms race" has begun, with the release of significant models and products like ChatGPT Agent and Kimi K2 expected to significantly boost domestic computing power demand. The long-term development prospects for domestic computing power are optimistic [3][36]. Summary by Sections Market Review - During the week of July 14-18, the CSI 300 Index rose by 1.09%, the SME Index increased by 2.26%, and the ChiNext Index grew by 3.17%. The computer sector (CITIC) saw a 2.32% increase. The top five gainers in the sector were Xiling Information, Chunz中科技, Information Development, Dingjie Smart, and Tuoer Si. The top five decliners were Dazhi Hui, Jinzheng Shares, Jingbeifang, Xinyada, and Changliang Technology [1][44]. Industry News - The Ministry of Industry and Information Technology (MIIT) is promoting the synergy between industrial internet and artificial intelligence, accelerating the development of 6G technology [38]. OpenAI has released ChatGPT Agent, which can think independently and select tools to complete complex tasks [39]. The MIIT will also organize the "Artificial Intelligence + Software" initiative to accelerate the software intelligence process [40]. Company Dynamics - Capital Online's shareholder Zhao Yongzhi reduced his stake by 5,200,000 shares, accounting for 1.036% of the total share capital. Guanglian Da repurchased 8,732,100 shares, approximately 0.53% of its total share capital, with a total transaction amount of 121,956,165.8 yuan [2][42]. Investment Suggestions - The report suggests focusing on domestic AI computing power, particularly in the following areas: 1. Chip design: Key players include Cambrian and Haiguang Information 2. Advanced wafer manufacturing: Focus on leading companies like SMIC 3. Domestic AI computing liquid cooling: Companies like Highlan and Yingweike 4. Domestic AI servers: Notable companies include Inspur, Softcom, China Great Wall, Shenzhou Data, Huibo Yuntong, Tuo Wei Information, Zhongke Shuguang, ZTE, Fenghuo Communication, Unisplendour, Industrial Fulian, and Gaoxin Development [3][36].

Core Viewpoint - The performance of domestic large models represented by DeepSeek has reached a level comparable to leading overseas models, with lower costs, indicating a significant improvement in usability and application potential in various sectors such as finance and office management [1][6][7]. Industry Overview - The computer industry is experiencing a fundamental improvement, with listed companies showing better performance in Q1 2025. The computer equipment sector is outperforming software development and IT services. The industry index has outperformed the CSI 300 index, ranking 6th among 31 Shenwan primary industries [3]. - The AI chip market is projected to grow from approximately $42.2 billion in 2022 to $92 billion by 2025, with a CAGR of 27.7%. Domestic AI chip manufacturers are making significant progress due to the inability to import advanced AI chips from the U.S. [4]. Algorithm and Application - Domestic large models are continuously improving, with a focus on three application areas: finance, office, and AI agents. The open-source, low-cost, and high-performance characteristics of these models are expected to accelerate their deployment in both B-end and C-end applications [3][6]. AI Computing Power - There is a strong demand for intelligent computing power, and domestic AI chip manufacturers such as Haiguang Information, Huawei, and Cambrian are achieving breakthroughs. The domestic AI chip industry is making significant strides towards self-sufficiency [4][6]. Intelligent Driving - The intelligent driving market in China, valued at trillions, is rapidly expanding, with L2-level assisted driving becoming common in mid-to-high-end models. The market is expected to see significant growth, with the total industry output value projected to increase by 7.295 billion yuan by 2025 and 25.825 billion yuan by 2030 [5][7]. Investment Recommendations - The company maintains a "stronger than the market" rating for the computer industry, highlighting investment opportunities in AIGC and intelligent driving themes. Recommended stocks include Haiguang Information, Inspur Information, and others in the AI computing power and algorithm/application sectors [2][7].

Group 1 - The core viewpoint of the news highlights the significant advancements in AI applications and financial technology, marking a pivotal moment in the software revolution, with AI applications being the central theme for the future [1] - The computer industry is experiencing rapid market expansion driven by factors such as domestic innovation and policy support, although competition remains intense in areas like databases and operating systems [1] - The domestic computer industry is improving its market share year by year due to the push for localization policies, despite still lagging behind foreign giants in product performance and ecosystem [1] Group 2 - The Computer ETF tracks the CS Computer Index, which is compiled by China Securities Index Co., selecting listed companies in the software development, IT services, and hardware manufacturing sectors to reflect the overall performance of China's computer-related listed companies [1] - The CS Computer Index exhibits high industry concentration and technological orientation, effectively representing the development trends of the Chinese computer industry [1]

Group 1 - The A-share market opened higher on June 5, with the CSI Computer Theme Index rising by 0.64%, driven by significant gains in stocks like Guangdian Yuntong and Langxin Group, which increased by over 3% [1] - The Computer ETF (159998) also opened positively, increasing by 0.35% with a premium rate of 0.40%, indicating active trading [1] - The Computer ETF has seen substantial capital inflow, with over 28 million yuan net inflow on the previous day, marking it as the top product in its category, and it has recorded net inflows for 13 consecutive trading days [1] Group 2 - The Computer ETF tracks the CSI Computer Theme Index, which includes stocks from sectors such as information technology services, application software, system software, and computer hardware [1] - The top ten holdings of the ETF as of March 31 include leading companies like Hikvision, Zhongke Shuguang, and Keda Xunfei, with Zhongke Shuguang accounting for 6.86% of the fund's net value [1] - Zhongyuan Securities anticipates a continuation of structural market trends in June, focusing on sectors like computers, components, electronics, and communications, alongside defensive sectors such as banks and coal [2]

Core Viewpoint - The Shanghai Stock Exchange and China Securities Index will officially launch the Shanghai Stock Exchange Science and Technology Innovation Board Computer Theme Index on May 27, which aims to reflect the overall performance of listed companies in the computer sector on the Science and Technology Innovation Board [1][3]. Group 1: Index Launch and Market Performance - The new index will include 50 stocks from the computer sector, such as Anheng Information, Guodun Quantum, and Shanshi Network Technology, focusing on software development, IT services, and computer hardware [3][5]. - On May 26, the computer sector saw a strong performance, with the CSI Computer Index rising by 1.39%, driven by news of a merger between two major computing companies [3][4]. - Several computer-themed ETFs also experienced significant gains, with Tianhong CSI Computer Theme ETF rising by 1.77% as of May 26 [3][4]. Group 2: Investment Opportunities and Trends - Over the past year, various computer-related indices have shown an increase of over 19%, indicating strong investment interest in the sector [4]. - The launch of the new index is expected to attract more ETFs that track it, providing investors with low-cost, diversified investment tools [5][6]. - The ongoing development of AI applications is anticipated to boost demand for software and computer hardware, further enhancing the investment landscape in the computer sector [5][6].

Core Insights - The Huawei HarmonyOS ecosystem is significantly focused on the desktop version of the Harmony system, which aims to create a seamless multi-device experience [1] Multi-Screen Collaboration - The HarmonyOS computer lacks direct support for popular applications like WeChat, but users can utilize "multi-screen collaboration" to control their mobile WeChat from the computer [2][4] - The core functionality of the HarmonyOS computer is to achieve an ecosystem closed loop, allowing for seamless multi-device connectivity, including shared mouse and file drag-and-drop capabilities [5] Software Availability - While the HarmonyOS computer does not support major software like Photoshop and CAD, it offers various domestic alternatives for photo editing, modeling, and video editing, such as "Meitu Xiuxiu" and "Jianying" [7] - The software ecosystem is rapidly expanding under Huawei's promotion, indicating that the HarmonyOS computer can handle most tasks effectively [7][19] User Experience - The keyboard and touchpad experience is generally satisfactory, with room for improvement. Special keys like the "Harmony Key" and "Voice Key" enhance usability [9][11] - The touchpad supports various gestures, but some functionalities, such as three-finger app switching, need further optimization [11] Windows Compatibility - Users can install Windows on the HarmonyOS computer through a virtual machine application, providing a rich software experience, including access to applications like WeChat and After Effects [12][16] - The virtual machine allows for smooth operation and shared keyboard and mouse functionality between HarmonyOS and Windows [16] Domestic Software Ecosystem - The HarmonyOS computer represents a significant step for domestic operating systems aimed at general consumers, with high completion levels and quality build [17] - The introduction of HarmonyOS is expected to greatly enhance the domestic software ecosystem, leading to the emergence of more high-quality applications [19]

Investment Rating - The report maintains an investment rating of "Outperform the Market" for the computer industry [5]. Core Insights - In Q1 2025, Tencent's capital expenditure reached 27.476 billion yuan, a year-on-year increase of 91.35%, with 23 billion yuan allocated to AI-related business, accounting for over 80% of total capital expenditure. Alibaba's capital expenditure was 24.612 billion yuan, up 120.68% year-on-year, with a signed but unrecognized capital expenditure commitment amounting to 45.321 billion yuan, a 146.68% increase year-on-year. Despite a slowdown in chip procurement due to US-China trade tensions, major companies continue to invest heavily in AI [34][21][18]. - The launch of Huawei's Harmony PC on May 19 marks a significant breakthrough for domestic operating systems, supported by local software vendors, enhancing the Harmony ecosystem and providing localized AI experiences through the assistant "Xiao Yi" [24][29][32]. Summary by Sections Market Review - The computer (Shenwan) index fell by 1.26% this week, underperforming the CSI 300 index by 2.38 percentage points [12]. Investment Portfolio - Current recommendations include Longxin Group, Tax Friend Co., Bosi Software, Compass, Newland, Guoneng Rixin, Top Software, and Daotong Technology. The previous portfolio had a return of -1.01%, outperforming the Shenwan computer index's decline of -1.26% by 0.26% [3][36]. Industry News - Tencent's Q1 2025 report showed a revenue of 180.022 billion yuan, a 12.87% increase year-on-year, with a net profit of 47.821 billion yuan, up 14.16% year-on-year. The financial technology and enterprise services segment generated 54.907 billion yuan, a 5% increase year-on-year [18]. - Alibaba's Q1 2025 report indicated a revenue of 236.454 billion yuan, a 6.57% increase year-on-year, with an adjusted EBITA of 32.616 billion yuan, up 36.07% year-on-year [21]. Investment Recommendations - Continued investment in AI models and technologies is expected, with a focus on ERP and government sectors for initial orders and products. Recommended stocks include Bosi Software, Tax Friend Co., and Kingdee International. The demand for private models is increasing, benefiting integrated machines and B-end service outsourcing companies [35]. - The Harmony PC is anticipated to drive domestic demand, with investment opportunities in the Xinchuang and industrial software sectors. Recommended stocks include Haiguang Information, Dameng Data, and Kingsoft Office [35].

Core Viewpoint - The emergence of Harmony OS on computers signifies a pivotal shift towards a self-controlled and secure digital ecosystem, addressing the growing concerns over privacy and security in the digital age [4][5][24]. Group 1: Security and Privacy - The increasing complexity of network threats necessitates a new operating system that can reconstruct security order, particularly in sectors that prioritize personal privacy and sensitive data [5]. - The Harmony OS emphasizes self-controlled security, which is deemed essential in the AI era, as traditional centralized security measures fail to meet real-time and privacy protection needs [4][5]. - Harmony OS has achieved the highest international CC EAL6+ certification for its kernel, establishing a robust security framework that protects user data at multiple levels [17][18]. Group 2: Technological Advancements - Harmony OS is built on a microkernel architecture that minimizes core functions, reducing the attack surface and enhancing system stability, which is crucial for sectors like government and finance [27]. - The operating system supports a distributed architecture that allows seamless cross-device connectivity, enhancing user experience and operational efficiency [12][15]. - The integration of AI capabilities, such as the intelligent assistant "Xiao Yi," enhances productivity by providing real-time assistance and facilitating knowledge management across devices [12][15]. Group 3: Market Position and Ecosystem - The launch of Harmony OS on computers represents a significant breakthrough in the desktop market, traditionally dominated by Windows, providing a viable alternative for users [24][25]. - Harmony OS aims to create a unified ecosystem that connects various devices, from mobile to desktop to IoT, positioning itself as a foundational platform for intelligent services [24][30]. - The operating system's ability to support "one development, multi-terminal deployment" significantly lowers development costs for developers and fosters a more cohesive ecosystem [28]. Group 4: Future Outlook - With over 1 billion Harmony devices already in use across various sectors, the company is rapidly building a future-oriented digital ecosystem [19]. - The ongoing development of Harmony OS is expected to lead to a substantial increase in compatible applications, with projections of reaching 2,000 by the end of 2025 [28]. - The transition towards a self-controlled operating system marks a critical juncture for China's ICT industry, providing a clear path for overcoming foreign technology monopolies [24][30].