On June 3rd, a divergence re-emerged between Hong Kong's hard tech and soft tech sectors. The Hang Seng Tech Index fell 2.59% after a strong rally, while the HK Connect Information Technology C Index, which focuses on hard tech, showed resilience, closing down just 0.16%. Huabao's HK Connect Information Technology ETF (159131), the largest and most liquid fund of its kind*, surged as much as 1.8% in early trading, briefly hitting a new high since its listing. It later weakened amid volatility, ultimately closing flat on high volume, with daily turnover exceeding 2.4 billion yuan.
Catalysts and Market Analysis
On the news front, Nvidia officially launched its RTX Spark chip for the Windows on Arm ecosystem and unveiled its subsequent PC product roadmap, indicating that future generations of CPUs will extend to Laptop and DGX Station products. The CPU is jointly developed by Nvidia and MediaTek, utilizing TSMC's 3nm process. Simultaneously, Nvidia disclosed that the RTX Spark is expected to hit the market this autumn, with initial partner manufacturers including Asus, Dell, HP, Lenovo, Microsoft, and MSI.
West China Securities analysis pointed out that against the backdrop of rapidly growing generative AI computing power demand, downstream customers' continued investment in computing infrastructure is expected to drive robust, high-elasticity growth for leading industry players with strong commercial ties to these clients. Regarding allocation, TF Securities noted that the Hong Kong market may still be dominated by structural opportunities in the short term, suggesting continued focus on technology growth sectors benefiting from AI capital expenditure expansion, sustained attention from southbound capital, and relatively low valuation percentiles, such as internet platforms, semiconductors, hardware equipment, and optical communications.
Performance Highlights
Looking at the past six months' performance, the underlying index of the Hong Kong hard tech-focused Huabao HK Connect Information Technology ETF (159131)—the CSI HK Connect Information Technology Composite Index—has gained over 25%, outperforming the Hang Seng Tech Index by 34% and the HK Connect Tech Index by 32% over the same period, demonstrating significantly sharper momentum and greater elasticity.
Performance Period: December 3, 2025 to June 3, 2026. The annual historical returns of the HK Connect Info Tech C Index from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively. Past index performance does not guarantee future results.
It supports T+0 trading! Focused on Hong Kong hard tech—the first-of-its-kind, largest, and most liquid Huabao HK Connect Information Technology ETF (159131). 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," covering 52 Hong Kong hard tech companies. Its largest constituent, Lenovo Group, has a weight of 16.10%, making this the index with the highest Lenovo exposure among all indices with linked products in the market. The index components exclude large-cap internet companies like Alibaba, Tencent, and Meituan, resulting in sharper focus and greater ease in capturing Hong Kong's AI hard tech trends. (Data as of May 29, 2026)
Data Sources: China Securities Index Co., Ltd., Shanghai and Shenzhen Stock Exchanges.
Note: "First-of-its-kind" refers to Huabao HK Connect Information Technology ETF being the first ETF in the market 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 (159131) was 1.346 billion yuan, making it the largest among the 8 ETFs currently tracking the CSI HK Connect Information Technology Composite Index. Its year-to-date average daily turnover is 372 million yuan. The annual historical returns of the underlying index, the 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 guarantee future results.
Fund 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 View Source: West China Securities report "AI Demand Drives Marvell, Dell, Lenovo Performance Growth."
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 this material are for illustrative purposes only. Descriptions of individual stocks do not constitute any form of investment advice nor represent the holdings or trading动向 of any fund managed by the asset manager. This product is issued and managed by Huabao Fund. Distributing institutions do not assume 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 documents to understand the fund's risk-return characteristics and choose products suitable for their own risk tolerance. Past fund performance does not predict 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. Distributing institutions (including the fund manager's直销机构 and other distributors) evaluate this fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by distributing institutions 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 described in the fund contract and its risk等级 due to different considerations. Investors should understand the fund's risk-return profile and谨慎 choose fund products based on their own investment objectives, horizon, experience, and risk tolerance, 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.
Comments