Core Insights - The approval of seven innovative ETFs, including the Morgan Zhongzheng Sci-Tech Innovation AI ETF, marks the launch of the first index funds in China focusing on the "Double Innovation" AI sector, providing new tools for investors to capture the benefits of hard technology development [1] - The main indices currently focusing on AI themes include the Sci-Tech Innovation AI Index, Sci-Tech AI Index, GEM AI Index, and Comprehensive AI Index, with the Sci-Tech Innovation AI Index covering 50 quality stocks from the Sci-Tech and GEM boards [1] Market Analysis - Despite recent fluctuations in the A-share AI sector, Morgan Asset Management asserts that short-term volatility does not affect the long-term growth logic of the AI industry [2] - The acceleration of large model technology iterations is creating systemic development opportunities across the entire industry chain, from foundational chip manufacturing to upper-level application scenarios [2] - Unlike the internet bubble period, current AI investments are significantly different, with large-scale tech companies driving growth due to ample cash flow and strong profitability, and AI technology generating commercial revenue even in its early R&D stages [2] Industry Dynamics - The surge in demand for cloud computing services is leading to high utilization rates of data centers, along with tangible benefits from improved advertising and enterprise service efficiency, indicating the ongoing value of industrial capital investment [2] - The global imbalance in computing power supply and demand is intensifying, with industry workloads growing rapidly, while supply-side expansion faces physical and technical bottlenecks, making the risk of over-investment in AI infrastructure relatively limited in the short term [2] - The East Asian market, particularly China, is attracting capital inflows due to its pivotal role in global semiconductor manufacturing and the AI supply chain, with exponential growth in AI technology driving long-term development momentum for regional tech industries [2] Investment Opportunities - The newly approved "Double Innovation" AI ETFs provide an efficient channel for investors to allocate resources in strategic areas such as chips and AI, while continuous capital injection supports the long-term value of the sci-tech ecosystem [2] - These developments are expected to assist China's manufacturing sector in accelerating its advancement towards the high end of the global value chain [2]