On August 14, driven by the overnight rally in US optical communication, memory, and AI stocks, AH-share hard tech stocks strengthened again in early trading. Guanghe Technology Co., Ltd., Huaqin Technology Co., Ltd., and Montage Technology Co., Ltd. each rose over 6%, Lenovo Group Ltd gained over 5%, and Tianshu Zhixin advanced over 4%. The Hong Kong Stock Connect Technology ETF Huabao (159131), the largest and most liquid in its category, saw its intraday price surge over 2%, with a real-time turnover of 371 million yuan.
On the news front, the US July CPI cooled as expected overnight (up 3.4% year-over-year), further weakening expectations of interest rate hikes. US-listed memory chip and optical communication stocks surged collectively—SK Hynix jumped over 9%, and Lumentum Holdings (LUMENTUM) soared over 13%. Japanese and South Korean stock markets both opened higher today, with South Korea's KOSPI up 3% and Japan's Nikkei 225 surpassing 68,000 points. Reports indicate that SK Hynix has resumed construction of its NAND flash memory production base Plant 2 in Dalian, China, aiming to expand capacity by approximately 50%. The company plans to introduce semiconductor production equipment by the end of this year and commence full-scale production in the first half of next year. Additionally, SK Hynix is heavily investing in its home country, South Korea, announcing investments of 35.2 trillion won and 19.1 trillion won in the Yongin "Y2" and Cheongju "M17" wafer fab projects, respectively, totaling approximately 54 trillion won.
From a technical perspective, a research report from Guosen Securities analyzes that sectors like AI computing hardware may already be in an M-top region. The conditions for a second wave of upward momentum are gradually accumulating, and the key is whether the market is ready to move to the right-side high point. First, the decline in AI computing hardware stocks has been significant, but the drop in trading indicators is not yet substantial. Second, concerns about the sustainability of capital expenditure in the sector have slightly eased after CSP earnings reports but have not been fully resolved. The conditions for the second wave of AI computing hardware are still building, and the market may currently be in a bottoming phase. In the future, attention should be paid to whether high growth in AI revenue can be sustained, and whether a new narrative catalyst, such as the outbreak of AI agents expected in early 2026, can emerge to drive a new round of expectations for the entire tech sector.
Hong Kong-listed hard tech stocks are a rare "pure-blood" investment opportunity! This ETF supports T+0 trading. The Huabao (159131) ETF, the first of its kind in the market, is the largest and most liquid in its category. Its over-the-counter feeder fund code is 026755. The underlying index, the CSI Hong Kong Stock Connect Information Technology Index, is composed of "85% hardware + 15% software," with heavy weightings in Hong Kong-listed "semiconductors + electronics + computer software," covering 60 Hong Kong-listed hard tech companies. Notably, the two major wafer foundry giants, Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Semiconductor Limited, together account for over 26% of the index weight. The domestic AI PC leader, Lenovo Group Ltd, has a weight of over 10%, and the PCB leaders Kingboard Holdings Limited and Kingboard Laminates Holdings Limited together account for over 11%—the highest combined weight among all products tracking related indices. Furthermore, on June 15, the index included several new Hong Kong-listed tech stars like Zhipu, Shenghong Technology, Tianshu Zhixin, and Biren Technology. The constituent stocks do not include large-cap internet companies such as Alibaba, Tencent, or Meituan, offering higher purity and making it easier to capture the Hong Kong AI hard tech theme.
Data source: CSI Index, as of June 30, 2026. Image generated by AI. Market volatility may be significant in the near term; short-term gains or losses do not predict future performance, and fund investments may incur losses. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position and risk management. The materials include stocks for display purposes only; stock descriptions do not constitute any form of investment advice and do not represent the holdings or trading activities of any fund managed by the fund manager. Data sources: CSI Index, Shanghai and Shenzhen Stock Exchanges. Reference institutional views source: Guosen Securities, August 8, 2026, "Revisiting Tech M-Top: When Will the Second Tech Wave Arrive?" Note: "The first in the market" refers to the Hong Kong Stock Connect Technology ETF Huabao being the first ETF in the market to track the CSI Hong Kong Stock Connect Information Technology Composite Index. As of August 11, 2026, the on-market scale of the Hong Kong Stock Connect Technology ETF Huabao was 2.414 billion yuan, making it the largest among the 8 ETFs tracking the same index; its average daily turnover this year has been 1.079 billion yuan, the highest among the 8 ETFs tracking the same index. The annual historical returns of the underlying 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. The annual volatilities for 2021-2025 were: 4.13%, 4.63%, 4.00%, 5.49%, and 5.45%, respectively. Past index performance does not predict future results. Fee description for ETFs: When investors subscribe for or redeem fund shares, the subscription/redemption agency may charge a commission of up to 0.5%. On-market trading fees are subject to the actual charges of the securities company, and no sales service fee is charged. The subscription fee for the Huabao CSI Hong Kong Stock Connect Information Technology ETF Feeder Fund is 0.30% for amounts under 1 million yuan, 0.20% for amounts between 1 million yuan (inclusive) and 2 million yuan, and 1,000 yuan per transaction for amounts of 2 million yuan (inclusive) or more. For individual investors, the redemption fee is 1.50% for holdings within 7 days, and 0.00% for holdings of 7 days (inclusive) or more. For institutional investors, the redemption fee is 1.50% for holdings within 7 days, 1.00% for holdings between 7 days (inclusive) and 30 days, 0.50% for holdings between 30 days (inclusive) and 180 days, and 0.00% for holdings of 180 days (inclusive) or more. No sales service fee is charged. Risk Disclaimer: The Hong Kong Stock Connect Technology ETF Huabao passively tracks the CSI Hong Kong Stock Connect Information Technology Composite Index. The base date of the index is November 14, 2014, and it was published on June 23, 2017. The composition of index constituent stocks is adjusted periodically according to the index compilation rules. Its backtested historical performance does not predict future index performance. The index constituent stocks are shown for display purposes only; stock descriptions do not constitute any form of investment advice and do not represent the holdings or trading activities of any fund managed by the fund manager. According to the fund manager's assessment, the risk level of the Hong Kong Stock Connect Technology ETF Huabao is R4 (Medium-High Risk), suitable for investors with an aggressive (C4) risk profile or above. For suitability matching opinions, please refer to the sales organization. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of statements) is for reference only. Investors must be responsible for any investment decisions made independently. Furthermore, any views, analyses, and forecasts in this article do not constitute any form of investment advice to readers and shall not be liable for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Invest in funds with caution.
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