Science and Technology Innovation Composite Index ETF Penghua (589680) up over 1.4%, CPO concept leads the market rally

CPO concept surges strongly, with positive news. In the US stock market, the optical communication sector leads the gains, with Lumentum up 10%, reaching a new historical high during trading. Coherent increased by 6.78%. Additionally, China has broken a new record in optical communication transmission, achieving real-time bidirectional transmission capacity of 2.5 petabits per second (Pb/s) over 10.3 kilometers of 24-core single-mode fiber for the first time.

Guojin Securities believes that the NPO solution will promote optical interconnects toward the Scale-up domain, opening up the TAM for optical connections. NPO is a practical solution before the implementation of the ultimate CPO plan, offering advantages such as open ecology and low operation and maintenance costs. Previously, valuations of optical module manufacturers were suppressed by the CPO narrative, and the market was concerned about growth rates beyond 2027. However, the NPO plan not only opens up the industry TAM but also, since it does not rely on advanced packaging, allows optical module manufacturers to participate deeply and even strengthen existing advantages. The market is optimistic about the NPO narrative boosting the valuations of optical module companies.

As of 11:05 on March 25, 2026, the Shanghai STAR Market Composite Index (000680) rose strongly by 1.55%. Leading stocks include Changguang Huaxin up 14.27%, Changyingtong up 13.50%, Jiewate up 12.92%, with Borre Data, Lite Optoelectronics, and others following suit. The STAR Market ETF Penghua (589680) increased by 1.47%, with the latest price at 1.31 yuan.

The STAR Market ETF Penghua closely tracks the Shanghai STAR Market Composite Index, which is composed of eligible STAR Market listed companies on the Shanghai Stock Exchange. The index includes dividend payments in its returns, reflecting the overall performance of STAR Market listed companies after dividend adjustments.

Data shows that as of February 27, 2026, the top ten holdings of the Shanghai STAR Market Composite Index (000680) are Hailiang Information, Cambrian, Semiconductor Manufacturing International Corporation (SMIC), Microchip Technology, Lankuo Technology, Xin Yuan Shares, Kingsoft Office, Baili Tianheng, United Imaging Healthcare, and Tuojing Technology. These top ten stocks account for a total of 21.99% of the index.

The STAR Market ETF Penghua (589680) is an over-the-counter linked product (A: 023757; C: 023758; I: 024141).