On May 22, positive news for domestic chips fueled a surge. The CSI Hong Kong Stock Connect Information Technology Index, which focuses on "Hong Kong-listed hard tech," soared over 6%, leading the market and significantly outperforming the Hang Seng Tech Index (up 1.98% at the time). The largest and most liquid ETF tracking this index, the Huabao Hong Kong Stock Connect Information Technology ETF (159131), trended upward throughout the day, closing up 6.34%. Its turnover exceeded 14 billion yuan, setting a record high since listing, and its closing price reclaimed the 1-yuan level. The ETF ranked third in daily gains among all ETFs and first among Hong Kong stock-focused ETFs.
Notably, a significant premium emerged for the Huabao Hong Kong Stock Connect Information Technology ETF (159131) near the market close. Real-time subscription and redemption data showed a single-day subscription of 18 million fund units.
Regarding constituent stocks, nearly 90% closed higher. As of the report, Lenovo Group surged nearly 20%, with turnover exceeding 64 billion Hong Kong dollars. The company reported revenue of $83.1 billion for the 2025/2026 fiscal year, a 20% year-over-year increase, reaching a record high. Its full-year adjusted net profit was $2 billion, up 42% year-over-year. Additionally, Kingboard Laminates, GigaDevice Semiconductor, and Fan Shi Zhi Neng, among others, rose over 10%, while SMIC gained over 6%.
On the news front, it was reported that German Gref, CEO of Russia's Sberbank, hopes to utilize Chinese-made chips to provide computing power for its AI model "GigaChat." Sberbank currently owns the GigaChat AI model and has been promoting an independent AI development strategy in recent years.
This morning, Li Chao, Deputy Director of the Policy Research Office and spokesperson for China's National Development and Reform Commission, stated at a press conference that core technologies and application demand in the AI field are showing rapid growth. China consistently adheres to a systematic layout, industry-specific measures, open sharing, and security and controllability, promoting the deep integration of AI with all sectors of the economy and society, and guiding domestic large models to increase efforts in adapting to domestic computing chips.
Ping An Securities noted that SMIC and Huahong released their Q1 2026 results, indicating a thriving foundry industry. According to a SEMI report, the global semiconductor materials market sales reached $73.2 billion in 2025, a year-over-year increase of 6.8%. Both wafer fabrication materials and packaging materials segments achieved growth, reflecting higher process complexity, demand for advanced nodes, and continued investment in high-performance computing and high-bandwidth memory manufacturing.
Since rebounding from its low on March 31, the underlying index of the Huabao Hong Kong Stock Connect Information Technology ETF (159131) – the CSI Hong Kong Stock Connect Information Technology Composite Index – has accumulated a gain of 32.59%. In the same period, the Hang Seng Tech Index and the Hong Kong Stock Connect Technology Index rose 3.83% and 2.6%, respectively, demonstrating significantly sharper and more elastic performance.
Statistical period: March 31, 2026, to May 22, 2026. The annual historical returns for the Hong Kong Stock 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.
Supports T+0 trading! Targeting the Hong Kong stock chip supercycle – the Huabao Hong Kong Stock Connect Information Technology ETF (159131) is the first of its kind in the market, the largest, and the most liquid. Its off-exchange feeder fund code is 026755. The underlying index is composed of "70% hardware + 30% software," heavily weighted in Hong Kong-listed "semiconductors + electronics + computer software." It covers 52 Hong Kong-listed hard tech companies, with memory chip exposure exceeding 26%. SMIC has a weight of 14.21%, Xiaomi Corporation-W has a weight of 10.31%, Lenovo Group has a weight of 9.33%, and Huahong Semiconductor has a weight of 8.82%. It excludes large-cap internet companies like Alibaba, Tencent, and Meituan, offering higher sharpness and making it easier to capture the Hong Kong AI hard tech trend. (Data as of May 5, 2026)
Data source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges. Note: "First in the market" refers to the 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 May 19, 2026, the latest on-exchange size of the Huabao Hong Kong Stock Connect Information Technology ETF was 7.75 billion yuan, making it the largest among the 7 ETFs currently tracking the CSI Hong Kong Stock Connect Information Technology Composite Index. Its year-to-date average daily turnover is 1.66 billion yuan. The annual historical returns for the underlying index, the CSI Hong Kong Stock 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. Fund fee explanation: Subscription and redemption agents for the Huabao Hong Kong 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 view reference source: Ping An Securities, "Foundry Industry Thriving, Focus on Opportunities in Domestic Substitution Industrial Chain." Risk Warning: The Huabao Hong Kong Stock Connect Information Technology ETF and its feeder fund passively track the CSI Hong Kong Stock Connect Information Technology Composite Index. The index 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 Huabao Fund. Distributors do not bear responsibility for the investment, redemption, or risk management 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 choose a product suitable for their own risk tolerance. Past fund performance does not indicate 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-High Risk, suitable for Aggressive (C4) and above investors. Distributors (including the fund manager's direct sales机构 and other distributors) conduct risk assessments of this fund according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by distributors and base their decisions on the matching results. Appropriateness opinions from different distributors may not necessarily be consistent, and the fund product risk等级 evaluation results issued by fund distributors 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 as described in the Fund Contract and the fund's risk等级 due to different考虑因素. Investors should understand the fund's risk-return situation,结合自身投资目的, investment horizon, investment experience, and risk承受能力 to谨慎选择基金产品 and bear 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.
MACD golden cross signals formed, these stocks are performing well!
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