On the afternoon of May 15th, the AH technology sector experienced a collective pullback, with Hong Kong-listed hard tech stocks continuing their decline. HUA HONG SEMI plummeted over 9%. The largest and most liquid* HK-Connect Information Technology ETF (159131) saw its on-market price drop sharply by 4%, trading at a significant premium during the session, with real-time turnover exceeding 10 billion yuan.
Analysts point to SK Hynix's earnings exceeding market expectations, driven primarily by the explosive demand for AI computing power, leading to a surge in HBM and DRAM prices (ASP up approximately 60% quarter-over-quarter). SK Hynix holds a dominant position, with a nearly 60% market share in HBM for Q1 2026, and is a key supplier of HBM3/3E/4 to NVIDIA. It is suggested to focus on (1) Testing Equipment: Watch for breakthroughs in domestic memory and SoC testers driven by AI chips. (2) Packaging Equipment: Domestic AI chips are adopting advanced packaging like CoWoS and HBM. China possesses strong global competitiveness in the packaging and testing segment, and domestic advanced packaging is expected to enter a year of significant volume growth, presenting new opportunities for domestic packaging equipment.
Since rebounding from its low on March 31st, the underlying index of the HK-Connect Information Technology ETF (159131) — the CSI HK-Connect Information Technology Composite Index — has accumulated a gain of 28.04%. Over the same period, the Hang Seng Tech Index and the HK-Connect Tech Index rose by 8.23% and 6.43% respectively, demonstrating significantly sharper performance and greater elasticity.
The HK-Connect Information Technology ETF (159131) supports T+0 trading and is positioned to capture the super-cycle in Hong Kong-listed semiconductor stocks. It is the first and largest ETF of its kind with the strongest liquidity. Its feeder fund code is 026755. The underlying index is composed of "70% hardware + 30% software," heavily weighted towards Hong Kong-listed "semiconductor + electronics + computer software" companies. It covers 52 Hong Kong-listed hard tech firms, including SMIC with a weight of 14.21%, Xiaomi Corporation with 10.31%, Lenovo Group with 9.33%, and HUA HONG SEMI with 8.82%. It excludes large-cap internet companies like Alibaba, Tencent, and Meituan, offering higher concentration and making it easier to capture the AI hard tech trend in the Hong Kong market.
Note: "First of its kind" refers to this ETF being the first to track the CSI HK-Connect Information Technology Composite Index. Fund fee note: The subscription and redemption agents for this ETF may charge a commission of up to 0.5%. On-market trading fees are subject to the rates charged by the securities firm. No sales service fee is charged. *Institutional view reference source. Risk Disclosure: The HK-Connect Information Technology ETF and its feeder fund passively track the CSI HK-Connect Information Technology Composite Index. The index's base date is November 14, 2014, and it was launched on June 23, 2017. The index constituents mentioned in the material are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form nor do they represent the holdings or trading动向 of any fund managed by the fund manager. This product is issued and managed by China Resources Fund Management Co., Ltd. Selling agents do not bear responsibility for the product's investment, redemption, or risk management. Investors should carefully read the Fund Contract, Prospectus, Key Facts Statement, and other legal documents to understand the fund's risk-return characteristics and choose a product suitable for their own risk tolerance. Past performance of the fund is not indicative of its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment carries risks. The fund manager assesses this fund's risk等级 as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. Selling agencies (including the fund manager's direct sales channels and other销售机构) evaluate the fund's risk according to relevant laws and regulations. Investors should pay timely attention to the appropriateness opinions issued by销售机构 and base their decisions on the matching results. Appropriateness opinions from different销售机构 may not be consistent. The fund product risk等级 evaluation results issued by fund销售机构 shall not be lower than the risk等级 evaluation result made by the fund manager. There may be differences between the fund's risk-return characteristics described in the fund contract and its risk等级 due to different考虑因素. Investors should understand the fund's risk-return profile and choose fund products prudently based on their own investment objectives, horizon, experience, and risk承受能力, bearing the risks themselves. The CSRC's registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks; investment requires caution.
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