On June 9th, AI hardware sectors including chips, semiconductors, PCBs, and AI PCs made a strong comeback, with the HK Connect Information C Index closing up over 3%, continuing to outperform the Hang Seng Tech Index (up 0.55%). The largest and most liquid* ETF of its kind, Huabao HK Connect Information Technology ETF (159131), opened higher but retreated in the morning session, before gaining momentum again near midday and strengthening through the afternoon session. It closed with a substantial 5.77% gain on high volume, reclaiming its 5-day, 10-day, and 20-day moving averages, with daily turnover exceeding 2.3 billion yuan.
Among its constituents, PCB giant Kingboard Holdings Ltd surged over 26% to lead gains. Guanghe Technology rose over 15%, Kingboard Laminates Holdings Ltd gained over 12%, ASMPT advanced nearly 10%, and AI PC concept stock Lenovo Group Ltd climbed over 6%.
Key Drivers for the Surge
Several factors may have contributed to today's sharp rise in Hong Kong's hard tech stocks.
Firstly, a global hardware rally is underway. The Philadelphia Semiconductor Index in the US rebounded strongly overnight, rising 5.6%. South Korea's KOSPI index surged 8% today, with improving external sentiment potentially spilling over to lift Hong Kong markets.
Secondly, a price surge is affecting AI hardware. Global printed circuit board (PCB) prices have risen sharply recently due to supply disruptions of key raw materials from Middle Eastern geopolitical conflicts. Analysts at Goldman Sachs noted in a recent report that global PCB prices in April alone soared by up to 40% compared to March. Guojin Securities previously highlighted in a research report that PCBs represent one of the steepest value-adding segments within AI hardware.
Thirdly, the industry is experiencing robust growth. According to a Guoyuan Securities research report citing WSTS forecasts, the global semiconductor market is expected to grow 90% by 2026, reaching $1.5 trillion, primarily driven by memory chips, which are projected to increase 250% year-on-year. Logic circuits are expected to grow 37% by 2026. From 2025 to 2027, the share of HBM wafer input from the three major manufacturers as a proportion of total DRAM wafer input is forecast to rise from 18% to 30%, while the share of HBM bit supply in total DRAM bit supply is expected to increase from 8% to 13%.
Performance Overview
Over the past six months, the underlying index for the hard tech-focused Huabao HK Connect Information Technology ETF (159131) – the CSI HK Connect Information Technology Composite Index – has accumulated gains exceeding 19%. This significantly outperforms the Hang Seng Tech Index by 35%, the HK Connect Technology Index by 33%, and the HK Connect Internet Index by over 47%, demonstrating notably sharper gains and greater resilience.
Statistical period: November 9, 2025, to June 9, 2026. The annual historical returns for the HK Connect Information C Index from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively. Past index performance does not indicate future results.
Product Features
Supporting T+0 trading, Huabao HK Connect Information Technology ETF (159131) is the first of its kind in the market, the largest, and the most liquid ETF focusing on Hong Kong's hard technology. Its feeder fund code is 026755. The underlying index is composed of "80% hardware + 20% software," heavily weighted towards Hong Kong-listed "semiconductors + electronics + computer software." It covers 52 Hong Kong-listed hard tech companies. The combined weight of the two major wafer foundry giants, SMIC and Huahong Semiconductor, exceeds 21%, the highest among all indices with linked products in the market. The weight of domestic AI PC leader Lenovo Group Ltd is 18.20%, also the highest index concentration in the market. The combined weight of PCB leaders Kingboard Holdings Ltd and Kingboard Laminates Holdings Ltd exceeds 8%, again representing the highest concentration in any market index. The index constituents exclude large-cap internet companies like Alibaba, Tencent, and Meituan, resulting in a sharper focus and greater ease in capturing the Hong Kong AI hard tech trend.
Data source: China Securities Index Co., Ltd., Shanghai and Shenzhen Stock Exchanges.
Note: "First in the market" refers to Huabao HK Connect Information Technology ETF being the first ETF to track the CSI HK Connect Information Technology Composite Index. As of May 29, 2026, the latest on-exchange scale of Huabao HK Connect Information Technology ETF was 1.346 billion yuan, making it the largest among the 8 ETFs currently tracking the CSI HK Connect Information Technology Composite Index. Its average daily turnover year-to-date is 372 million yuan. The annual historical returns of the underlying CSI HK Connect Information Technology Composite Index (HKD) from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively. Past index performance does not indicate future results.
Fee Information
Subscription and redemption agents for Huabao HK Connect Information Technology ETF may charge a commission of up to 0.5%. On-exchange trading fees are subject to the actual charges by securities firms. No sales service fee is charged.
Institutional views are sourced from: Guoyuan Securities' report "Memory Chips Drive Semiconductor Growth, Nvidia and AMD Double Down on AI PC" and Guojin Securities' report "Computer Industry Research: PCBs, The King of Slope."
Risk Disclosure
Huabao HK Connect Information Technology ETF and its feeder fund passively track the CSI HK Connect Information Technology Composite Index. The index base date is November 14, 2014, and its release date is 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 Huabao Fund. Distributors do not bear responsibility for the investment or redemption of the product. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement, and other legal fund documents to understand the fund's risk-return characteristics and select a product suitable for their own risk tolerance. Past fund performance does not predict 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. Sales institutions (including the fund manager's direct sales channels and other distributors) evaluate the fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by sales institutions and base their decisions on the matching results. Appropriateness opinions from different sales institutions may not necessarily be consistent, and the fund risk等级 evaluation results issued by fund sales institutions shall not be lower than the risk等级 evaluation result 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 prudently based on their own investment objectives, horizon, experience, and risk tolerance, bearing the 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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