On May 12, following a sustained rally, Hong Kong's hard technology sector underwent a consolidation phase. The largest and most liquid* Southbound Stock Connect Information Technology ETF, HuaBao (159131), saw its on-market price decline by 2.51%, with a real-time turnover of 559 million yuan. During the preceding rebound period, the fund experienced continuous inflows, with a net inflow exceeding 230 million yuan over the last 10 trading days.
Dongwu Securities pointed out that with the upcoming meeting between the Chinese and U.S. heads of state, there is potential for a more favorable external market environment. 2026 is seen as a critical observation window for Sino-U.S. relations. If the U.S. visit to China yields positive signals, it could foster a more stable environment for subsequent discussions on trade, technology, and geopolitical issues. Since the TACO in April, global markets have seen a significant rebound. The firm believes that after a strong rally in global AI hardware (GPUs, computing power, storage, etc.), the momentum is now broadening. The Hong Kong market holds strong representation in internet platforms, AI applications, and ecosystem scenarios, and related heavyweight tech stocks are expected to benefit from this diffusion of the AI theme.
Since bottoming out on March 31, the underlying index of the Southbound Connect IT ETF HuaBao (159131)—the CSI Southbound Stock Connect Information Technology Composite Index—has surged by 30.83%. In comparison, the Hang Seng Tech Index and the Southbound Connect Tech Index rose by 8.88% and 8.07%, respectively, over the same period, highlighting its sharper performance and greater elasticity.
Statistical Period: March 31, 2026 - May 11, 2026. The annual historical returns of the Southbound Connect Information Technology Index for 2021-2025 were: -9.54%, -34.47%, -0.25%, 21.58%, 39.30%. Past index performance does not indicate future results.
Supports T+0 Trading! Targeting the Super Cycle in Hong Kong Chips—The Southbound Connect IT ETF HuaBao (159131) is the first of its kind in the market, the largest, and most liquid*. Its off-market feeder fund code is 026755. The underlying index is composed of "70% Hardware + 30% Software," heavily weighted towards Hong Kong-listed "Semiconductors + Electronics + Computer Software." It covers 52 hard tech companies in Hong Kong, with SMIC (中芯国际) having a weight of 14.21%, Xiaomi Corporation-W (小米集团-W) at 10.31%, Lenovo Group (联想集团) at 9.33%, and Huahong Semiconductor (华虹半导体) at 8.82%. It excludes large-cap internet companies like Alibaba, Tencent, and Meituan, offering higher concentration and better positioning to capture the Hong Kong AI hard tech trend. (As of May 5, 2026)
Data Source: China Securities Index Co., Ltd., Shanghai and Shenzhen Stock Exchanges.
Note: "First in the market" refers to the Southbound Connect IT ETF HuaBao being the first ETF to track the CSI Southbound Stock Connect Information Technology Composite Index. As of May 11, 2026, the latest on-market size of the ETF is 828 million yuan, making it the largest among the 7 ETFs currently tracking this index. The ETF's average daily turnover year-to-date is 166 million yuan. The annual historical returns of the underlying index, the CSI Southbound Stock Connect Information Technology Composite Index (HKD), for 2021-2025 were: -9.54%, -34.47%, -0.25%, 21.58%, 39.30%. Past index performance does not indicate future results.
Fund Fee Note: The subscription and redemption agency for the Southbound Connect IT ETF HuaBao 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.
*Institutional Views Reference Sources: CMB International Securities "CMB International Securities Industry Sentiment Observation: Steady Growth in May Day Travel Consumption, YoY Growth in Global Semiconductor Sales Expanded in March." Central China Securities "Semiconductor Industry Monthly Report: Overseas Cloud Providers Raise 2026 Capex Plans, CPUs Return to AI Data Centers."
Risk Disclosure: The Southbound Connect IT ETF HuaBao and its feeder fund passively track the CSI Southbound Stock Connect Information Technology Composite Index. The index base date is November 14, 2014, and its release date was June 23, 2017. The index constituents mentioned 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. Selling agents do not assume responsibility for the product's investment, redemption, or risk management. Investors should carefully read the Fund Contract, Prospectus, Fund Product Summary, and other legal documents to understand the fund's risk-return characteristics and choose a product 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 level as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. Selling agencies (including the fund manager's direct sales channels and other sales agencies) evaluate the fund's risk according to relevant laws and regulations. Investors should pay attention to the appropriateness opinions issued by selling agencies and base their decisions on the matching results. Appropriateness opinions from different sales agencies may not be consistent, and the risk等级评价 results from fund sales agencies cannot be lower than those from the fund manager. 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, considering their own investment objectives, horizon, experience, and risk tolerance, prudently select fund products 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.
A MACD golden cross signal has formed, and these stocks are performing well.
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