Hong Kong Chip Stocks See Broad Pullback; HUA HONG SEMI Plunges Over 6%

Deep News12-15

In early trading on December 15, Hong Kong-listed chip stocks experienced a sector-wide decline. HUA HONG SEMI led the losses, dropping over 6%, while Innoscience, Foxconn Interconnect Technology, and Montage Technology each fell more than 5%. Xiaomi Group-W slid over 2%, and SMIC dipped more than 1%.

The Hong Kong Information Technology ETF (159131), the first ETF tracking the "Hong Kong chip" industry chain, saw its price decline by 2.35% intraday, with trading volume exceeding 23.5 million yuan. The ETF displayed notable premium activity, indicating strong buying interest during the dip. As of reporting, it recorded a net subscription of 4 million units.

Ping An Securities’ annual strategy report highlights robust demand for AI computing power, with global and Chinese markets maintaining high growth momentum. According to IDC data, the global and Chinese AI server markets are projected to grow at CAGRs of 15.5% and 30.6%, respectively, from 2024 to 2028. Leading global CSP providers continue to ramp up capital expenditures, providing strong support for AI computing infrastructure.

Domestically, China’s push for self-sufficiency in AI chips is gaining traction, driven by policy support, strong downstream demand, and significant substitution potential. This positions the local AI chip supply chain for accelerated growth.

The Hong Kong Information Technology ETF (159131) offers exposure to the "70% hardware + 30% software" index, focusing on semiconductor, electronics, and computer software sectors. It holds 42 Hong Kong-listed tech firms, including SMIC (20.48% weight), Xiaomi Group-W (9.53%), and HUA HONG SEMI (5.80%). Notably, it excludes large-cap internet stocks like Alibaba, Tencent, and Meituan, providing sharper exposure to Hong Kong’s AI and hard-tech trends. (Data as of November 30, 2025.)

Investors are advised to assess their risk tolerance and investment horizon carefully, given recent market volatility. Past performance does not guarantee future results.

*Risk Disclosure: The ETF tracks the CSI Hong Kong Stock Connect Information Technology Index (base date: November 14, 2014; launched June 23, 2017). Constituent stock details are for illustrative purposes only and do not represent investment recommendations or fund holdings. Investors should review fund documents and evaluate risks independently.*

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