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Today (October 15), the overall market performed sluggishly, with the technology sector suffering particularly steep declines. The benchmark index of Hong Kong Stock Connect Information Technology ETF (159131) managed by Huabao plunged 5.94% during the session. Among the top ten weighted stocks, aside from Xiaomi Group-W which rose over 2%, all others closed lower. Lenovo Group led the decline with a drop of 14%, Hua Hong Semiconductor fell nearly 8%, and SMIC dropped nearly 4%.
Chart 1: Near six-month trend of the benchmark index of Hong Kong Stock Connect Information Technology ETF (159131). Chart 2: Performance of the top ten weighted stocks of the benchmark index of Hong Kong Stock Connect Information Technology ETF (159131).
Why did the technology sector suffer such a sharp sell-off? US inflation exceeding expectations led to rising rate hike expectations, which triggered a plunge in US chip stocks, fueling concerns over AI capital expenditure, and creating a chain reaction of resonance between valuations and sentiment. Combined with the fact that sectors such as storage and optical modules had already posted substantial gains earlier and had fully priced in expectations, these factors may have contributed to this round of concentrated selling. In the short term, the market is still digesting adjustment pressures, and going forward, focus may need to be placed on third-quarter earnings verification and changes in the Federal Reserve's interest rate signals.
Is this round of the AI trend over? Dongwu Securities analysis points out that the AI trend is not yet finished. With market sentiment bottoming out and US Treasury yields falling, a rebound rally may be on the horizon. Policy continues to follow the main tone of "stock-based support." The AI industry trend is making positive progress. Before the holiday, policies were introduced intensively: the central bank lowered the PSL interest rate and expanded its scope to new infrastructure areas such as the "Six Networks," while re-lending for technological innovation and industrial upgrading was further increased to support key projects. The policy package covers multiple dimensions including monetary, fiscal, and structural tools, releasing clear signals of stabilizing growth and expectations, while also highlighting that this round of regulation places greater emphasis on precise targeting and stock optimization. Regarding AI, although no major new consensus has formed at the industry level, positive progress is abundant: model releases are accelerating, and early signals of penetration are emerging for new AI application scenarios such as personal agents. Technology hardware, as a category with higher visibility for current and next-period EPS, has an advantage on the numerator side in a high-interest-rate environment. Guosheng Securities research also points out that the medium-term upward structure of this round of hard-tech行情 may not yet be broken, but short-term adjustment pressures still need to be digested. Looking ahead to mid-to-late October, the market pricing logic will shift to "fundamental verification"—with concentrated third-quarter earnings disclosures, the AI industry chain faces an important window for testing its prosperity, and stocks with earnings exceeding expectations may become the structural main line in an adjusting market. In terms of allocation, it is recommended to continue positioning around main lines such as the domestic storage industry chain, AI applications and hardware chain, and optoelectronic detection and testing equipment chain.
Hong Kong stocks' scarce "pure-blood" hard tech! Supporting T+0 trading! Hong Kong Stock Connect Information Technology ETF (159131) tracks the Hong Kong Stock Connect Information C Index, which is composed of approximately "80% hardware + 20% software," heavily weighted in Hong Kong-listed "semiconductors + electronics + computer software," covering 74 Hong Kong hard-tech companies, including the "wafer foundry duo" SMIC and Hua Hong Semiconductor, "domestic AI PC leader" Lenovo Group, and the "domestic large model duo" Zhipu and Minimax. The constituent stocks exclude large-cap internet companies such as Alibaba, Tencent, and Meituan, making it easier to capture the Hong Kong AI hard-tech market trends. Additionally, investors without securities accounts can also use the off-exchange feeder fund (026755) to gain one-click exposure to Hong Kong hard tech.
Chart 3: Introduction to the top ten weighted stocks of the benchmark index of Hong Kong Stock Connect Information Technology ETF (159131). Weight data source: China Securities Index Company, as of 2026.9.30. According to the fund manager's assessment, the risk level of Hong Kong Stock Connect Information Technology ETF managed by Huabao is R4-Medium-High Risk, suitable for aggressive (C4) and above investors. Please refer to the sales institution for suitability matching opinions. Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Fund investment may result in losses. Investors must invest rationally based on their own financial conditions and risk tolerance, and pay close attention to position and risk management.
[Data Source] China Securities Index Company, Shanghai and Shenzhen Stock Exchanges. [ETF Fund Related Fee Description] When investors subscribe or redeem fund shares, the subscription and redemption agency may charge a commission of no more than 0.5%. On-exchange trading fees are subject to what the securities company actually charges, and no sales service fee is charged. Huabao CSI Hong Kong Stock Connect Information Technology ETF Feeder Fund subscription fee is 0.30% for amounts under 1 million yuan, 0.20% for 1 million yuan (inclusive) to 2 million yuan, and 1,000 yuan per transaction for 2 million yuan (inclusive) and above; for individual investors, 1.50% for less than 7 days, 0.00% for 7 days (inclusive) and above. For institutional investors, 1.50% for less than 7 days, 1.00% for 7 days (inclusive) to 30 days, 0.50% for 30 days (inclusive) to 180 days, and 0.00% for 180 days (inclusive) and above; no sales service fee is charged. Fund management fee: 0.5% per year; fund custody fee: 0.1%. Please refer to the legal documents of each fund for fund fee rates. [Individual Stock Notice] The index constituent stocks mentioned in this article are for display purposes only. Individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager. [Institutional View Sources] Dongwu Securities 20261011 "Short-term Rebound May Be Coming"; Guosheng Securities 20261011 "Hard Tech Core Strategy: Bull Market Framework Not Broken, Waiting for Repair, AI Third-Quarter Earnings Begin to Verify Prosperity, Fed Minutes Hawkish Pricing Shifts Later." [Risk Warning] Hong Kong Stock Connect Information Technology ETF managed by Huabao passively tracks the CSI Hong Kong Stock Connect Information Technology Composite Index. The index base date is 2014.11.14, published on 2017.6.23. The CSI Hong Kong Stock Connect Information Technology Composite Index (HKD) annual historical returns for 2021-2025 are: -9.54%, -34.47%, -0.25%, 21.58%, 39.30%; the annual volatility for 2021-2025 are: 4.13%, 4.63%, 4.00%, 5.49%, 5.45%. Past performance of the index does not predict future performance. The constituent stocks of the index are adjusted from time to time according to the index compilation rules, and its back-tested historical performance does not predict the future performance of the index. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, and any form of expression) is for reference only, and investors are responsible for their own investment decisions. In addition, any views, analyses, and predictions in this article do not constitute investment advice in any form to readers, nor do they assume any direct or indirect liability for losses caused by the use of the content of this article. Fund investment involves risks, past performance of funds does not represent future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are performing well!
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