Semiconductor and chip stocks once again captured market attention today (June 29th), with both hardware and software technology sectors in Hong Kong showing strength. The largest and most liquid* Hong Kong Stock Connect Information Technology ETF, Huabao (159131), initially surged over 3% at the open before dipping into negative territory, then staged a strong afternoon rally to close up 2.15%. On the capital flow front, funds have been continuously adding positions over the last four trading sessions, resulting in a combined net inflow exceeding 570 million yuan.
Among the fund's constituents, memory leader Gigadevice Semiconductor Inc. soared 14% to a new all-time high. ASMPT gained over 11%, while Biren Technology rose more than 9%. Hua Hong Grace Semiconductor Limited jumped over 7%, also reaching a record high. Other notable gainers included Kingsoft Cloud, Shanghai Fudan Microelectronics, and Kingdee International Software, all up more than 7%. The fund's top holding, Semiconductor Manufacturing International Corporation, advanced over 6%.
On the news front, Samsung announced a massive investment plan totaling 2,655 trillion won, with 2,030 trillion won earmarked for semiconductor industry clusters in Yongin and Pyeongtaek, South Korea. This follows earlier reports that Samsung Group and SK Hynix would unveil a 10-year, 2,000 trillion won (approximately 8.8 trillion yuan) investment plan focused on semiconductors, AI computing data centers, and physical AI.
A Guosen Securities research report points out that current computing power demand is rapidly shifting from the initial "model training" phase to spilling over into the "application inference" side for large-scale deployment. As the marginal effects of Moore's Law diminish, the core of computing power competition has shifted entirely from traditional "single-chip peak performance improvement" to "comprehensive efficiency optimization of chips, software ecosystems, and system-level clusters." Against the backdrop of restricted overseas sales of high-end chips, domestic demand for technological self-reliance and large model iteration are creating a synergistic effect, accelerating the adaptation and volume growth of local AI chip manufacturers. This presents incremental opportunities for the entire domestic computing power ecosystem.
Performance and Positioning
Looking at the past six months, the performance within the Hong Kong tech sector has been highly divergent. The benchmark index for the Hong Kong Stock Connect Information Technology ETF Huabao (159131), the CSI Hong Kong Stock Connect Information Technology Composite Index, has surged 25.75%. This significantly outperforms the Hang Seng Tech Index by 48%, the Hong Kong Stock Connect Technology Index by 43%, and the Hong Kong Stock Connect Internet Index by over 61%, demonstrating exceptional sharpness and elasticity.
Statistical period: 2025.12.29 - 2026.6.29. The historical annual returns for the Hong Kong Stock Connect Information Technology C Index from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%, respectively. The index's volatility for the same years was 4.13%, 4.63%, 3.40%, 5.49%, and 5.45%, respectively. Past performance of the index is not indicative of future results. Images are AI-generated.
Key Features of the Fund
This ETF offers a rare "pure-play" on Hong Kong's hardware technology sector and supports T+0 trading. As the first and largest ETF of its kind with the strongest liquidity, Huabao Hong Kong Stock Connect Information Technology ETF (159131) has an associated feeder fund code 026755. Its underlying index is composed of "80% hardware + 20% software," heavily weighted towards Hong Kong-listed "semiconductors + electronics + computer software." It covers 60 Hong Kong-listed hardware tech companies. Notably, the combined weight of the two major wafer foundry giants, Semiconductor Manufacturing International Corporation and Hua Hong Grace Semiconductor Limited, exceeds 26%. Domestic AI PC leader Lenovo Group holds a weight of over 10%, while PCB leaders Kingboard Holdings and Kingboard Laminates Holdings together account for over 11%—these are the highest concentrations among all market indices with linked products. Furthermore, the index's latest rebalancing on June 15th included several new Hong Kong-listed hardware tech players such as Zhipu AI, Biren Technology, and Shenghong Technology. The index excludes large-cap internet companies like Alibaba, Tencent, and Meituan, giving it a sharper focus and making it more effective at capturing the AI hardware tech rally in Hong Kong.
Data source: China Securities Index Co., Ltd., as of 2026.6.24. Images are AI-generated.
Data source: China Securities Index Co., Ltd., Shanghai and Shenzhen Stock Exchanges.
Note: "First in the market" refers to Huabao Hong Kong Stock Connect Information Technology ETF being the first ETF to track the CSI Hong Kong Stock Connect Information Technology Composite Index. As of 2026.6.26, the ETF's latest on-exchange AUM was 1.887 billion yuan, making it the largest among the 8 ETFs tracking the same index. Its year-to-date average daily turnover is 659 million yuan. The underlying index, the CSI Hong Kong Stock Connect Information Technology Composite Index (HKD), had annual historical returns of -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% from 2021 to 2025, respectively. Past performance of the index is not indicative of future results.
Fee Information
Subscription and redemption agents for Huabao Hong Kong Stock Connect Information Technology ETF may charge a commission of up to 0.5%. On-exchange trading fees are subject to the rates set by securities firms. No sales service fee is charged.
Investment Risks
Huabao Hong Kong Stock Connect Information Technology ETF and its feeder fund passively track the CSI Hong Kong Stock Connect Information Technology Composite Index, which has a base date of November 14, 2014, and was launched on June 23, 2017. The index constituents mentioned in this 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 asset manager. This product is issued and managed by Huabao Fund. Distributors do not assume responsibility for the investment performance or redemption of the product. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Summary," and other legal fund documents to understand the fund's risk-return characteristics and choose products 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 involves risks! The fund manager assesses this fund's risk等级 as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. Distributors (including the fund manager's direct sales channels and other distributors) evaluate the fund's risk according to relevant laws and regulations. Investors should pay timely attention to the suitability assessment opinions provided by distributors and base their decisions on the matching results. Suitability opinions from different distributors may not be entirely consistent. The fund risk等级 evaluation results issued by fund distributors shall not be lower than the risk等级 evaluation results made by the fund manager. The description of the fund's risk-return characteristics in the fund contract and its risk等级 may differ due to different considerations. Investors should understand the fund's risk-return profile and choose fund products carefully based on their own investment objectives, horizon, experience, and risk tolerance, bearing the associated risks themselves. The China Securities Regulatory Commission'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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