The gaming sector rose with volatility in the midday session; the Huaxia Gaming ETF (159869) is currently up nearly 1%.

On July 21, the gaming sector experienced volatile upward movement during the midday session. The largest gaming ETF by index size, Huaxia (159869), rose nearly 1%. As of press time, intraday trading volume had exceeded 520 million yuan. By July 20, Huaxia Gaming ETF (159869) had seen net capital inflows for three consecutive trading days, accumulating a total of 533 million yuan in "capital absorption," making it highly favored by investors. The fund's scale reached 9.072 billion yuan.

Zhongtai Securities believes that the current valuation of the gaming sector is at the bottom. With the peak summer season approaching, companies such as Giant Network, Kaiying Network, Century Huatong, and Bitmain demonstrate strong certainty in high growth rates. Going global and long-term operations have become core growth engines. NetEase's rich pipeline of new products will also contribute incremental growth. In the trendy toy sector, Blokees' cost-effective overseas expansion is expected to achieve high-speed growth. After adjustments, Pop Mart has significant upward momentum driven by IP cycles, new product categories, and optimized overseas operations.

The gaming sector is subject to multiple catalysts including AI, content, and commercialization model transformations. Huaxia Gaming ETF (159869) tracks the CSI Dynamic Gaming Index, leading the entire market in AI application exposure. It accurately covers the overall performance of China's A-share anime and gaming industry. Currently, the gaming sector is experiencing a wave of multiple catalysts from policy benefits, product cycles, and AI empowerment, presenting a potential window for layout in the gaming track.