Hard technology stocks in the Hong Kong market advanced once again during early trading today. The leading PCB manufacturer, KINGBOARD HLDG, surged more than 16%, while the top optical components maker, Sunny Optical Technology, gained over 9%. The largest and most liquid* ETF tracking this theme, the H-Share Information Technology ETF Hua Bao (159131), reversed early losses to climb sharply, currently up 1.67% with real-time turnover nearing RMB 5 billion.
On the news front, Kingboard Holdings has once again raised its CCL (Copper Clad Laminate) prices by 15%. Furthermore, prices for most high-capacitance MLCC (Multi-Layer Ceramic Capacitor) products in the Huaqiangbei market have doubled since May. Tianfeng Securities pointed out that the core PCB material, CCL, has experienced multiple price hike waves this year, with each increase around 10%. Compared to the beginning of the year, CCL prices have now risen by approximately 40%. Driven by AI demand, CCL and its upstream materials have entered an upward cycle, with optimism surrounding the profit elasticity for the CCL segment in this round.
Regarding investment strategy, Soochow Securities suggests investors focus on offensive technology as a core theme. It is recommended to prioritize exposure to AI applications, software, and hardware beneficiaries of the global AI boom, while also considering tactical opportunities in HALO assets.
Looking at performance over the past six months, the underlying index of the H-Share Information Technology ETF Hua Bao (159131), the CSI H-Share Information Technology Composite Index, has accumulated gains exceeding 24%. This significantly outperforms the Hang Seng TECH Index by 39%, the H-Share Technology Index by 37%, and the H-Share Internet Index by over 53%, demonstrating notable sharpness and resilience.
Statistical period: Nov 16, 2025 - Jun 16, 2026. The H-Share Information Technology C Index had annual historical returns of -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% from 2021 to 2025, respectively. Past index performance does not indicate future results.
This ETF offers a rare, 'pure-play' hard technology exposure in the Hong Kong market and supports T+0 trading. As the first and largest ETF of its kind with the strongest liquidity, the H-Share Information Technology ETF Hua Bao (159131) has an offshore 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 encompasses 60 hard tech companies. The combined weight of the two leading foundries, SMIC and Hua Hong Semiconductor, exceeds 21%. The domestic AI PC leader, Lenovo Group, carries a weight of 15.89%. The combined weight of the PCB leaders, KINGBOARD HLDG and Kingboard Laminates, is over 10%. These three categories represent the highest concentration in any index with linked products across the market. The index has recently included several new hard tech heavyweights like Zhipu AI and Biren Technology. Notably, the index excludes large-cap internet firms such as Alibaba, Tencent, and Meituan, resulting in higher focus and a sharper profile, making it more effective for capturing the Hong Kong AI hard tech trend.
Data source: CSI Index Company, Shanghai and Shenzhen Stock Exchanges.
Note: "First in the market" refers to the H-Share Information Technology ETF Hua Bao being the first ETF to track the CSI H-Share Information Technology Composite Index. As of June 9, 2026, the ETF's latest on-market scale was RMB 13.30 billion, making it the largest among the eight ETFs currently tracking the index. Its year-to-date average daily turnover is RMB 4.99 billion. The underlying CSI H-Share 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 index performance does not indicate future results.
Fund fee information: Subscription and redemption agents for the H-Share Information Technology ETF Hua Bao may charge a commission of up to 0.5%. On-market trading fees are subject to the actual charges by securities firms. No sales service fee is charged.
Reference for institutional views: Tianfeng Securities report "Emphasizing the Profit Elasticity in the Vertically Integrated CCL Upturn"; Soochow Securities report "Hong Kong Stocks Poised for Catch-up Rally – Weekly Hong Kong Market Views."
Risk Disclosure: The H-Share Information Technology ETF Hua Bao and its feeder fund passively track the CSI H-Share Information Technology Composite Index. The index base date is November 14, 2014, and its release date is June 23, 2017. Index constituents mentioned in this material are for illustrative purposes only. Descriptions of individual stocks are not intended as any form of investment advice and do not represent the holdings or trading intentions of any fund managed by the fund manager. This product is issued and managed by Hua Bao Fund Management Co., Ltd. Distributing institutions do not bear responsibility for the product's investment or redemption. 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 this fund's performance. Fund investment carries risks. The fund manager assesses this fund's risk rating as R4 – Medium to High Risk, suitable for Aggressive (C4) and above investors. Distributing institutions (including the fund manager's direct sales channels and other distributors) conduct risk assessments of this fund according to relevant laws and regulations. Investors should pay attention to the appropriateness opinions provided by distributors and base decisions on the matching results. Appropriateness opinions from different distributors may not be consistent. A distributor's fund product risk rating result shall not be lower than the risk rating result determined by the fund manager. There may be differences between the fund's risk-return characteristics as described in the Fund Contract and its risk rating due to different considerations. Investors should understand the fund's risk-return profile and choose fund products cautiously 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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