Significant Boost! Hong Kong's "Hard Tech" Stocks Experience Strong Rebound

On April 8, markets opened with significant gains, potentially fueled by the major news of a two-week ceasefire in Middle East conflicts. Both A-shares and H-shares saw a collective strong rebound. The first ETF in the market focusing on the "Hong Kong chip" industry chain, Hua Bao's Hong Kong Stock Connect Information Technology ETF (159131), gapped up at the open and surged powerfully by 5.57%. It decisively broke above both the 5-day and 10-day moving averages and touched the 20-day line, highlighting the high elasticity characteristic of the hard tech sector.

Among its constituent stocks, Tianyue Advanced surged over 10%. HUA HONG SEMI, Hong Teng Precision, Kingboard Laminates, and ASMPT all rose more than 9%. SMIC, Q Technology, and Kingboard Group all gained over 6%.

A recent weekly perspective from Soochow Securities on Hong Kong stocks pointed out that the US-Iran conflict has entered a critical week, with the possibility of reaching an agreement being key to the market's direction. If an agreement is reached, the market's阶段性 low point may have passed; if not, the market could face severe challenges. Should there be强硬 actions around April 7th or if the situation lasts longer than expected, US stocks would face increased downward pressure, and Hong Kong stocks would be susceptible to联动 effects. Short-term volatility risks remain, and continued observation is advised. For investors considering adding positions on a rebound, priority might be given to upstream AI hardware as an anchor for growth trends. For those with lower risk appetite, it is still recommended to use value dividend stocks as a core holding while持续关注 China's globally scarce assets.

Fundamentally, alongside the explosion in AI computing demand, the Hong Kong hard tech sector delivered impressive results for 2025. Among the 50 constituent stocks of the CSI Hong Kong Stock Connect Information Technology Composite Index, 39 companies achieved year-on-year growth in net profit attributable to parent company shareholders, with 12 of them even achieving growth exceeding 100%. Legend Holdings reported a net profit attributable to parent company shareholders of 10.61 billion yuan for 2025, a sharp increase of 696% year-on-year. Q Technology reported 1.494 billion yuan, soaring 435% year-on-year. XIAOMI-W garnered a net profit of 41.6 billion yuan, a significant increase of 76%!

This points directly to a super cycle for Hong Kong chip stocks! Investors can utilize the T+0 eligible Hong Kong chip industry chain ETF—the market's first ETF focusing on this theme, Hua Bao's Hong Kong Stock Connect Information Technology ETF (159131), with the off-exchange feeder fund code 026755. The underlying index is composed of "70% hardware + 30% software," heavily weighted towards Hong Kong-listed "semiconductors + electronics + computer software." It covers 50 hard tech companies listed in Hong Kong, with XIAOMI-W having a weight of 13.25%, SMIC at 12.54%, Lenovo Group at 9.04%, and HUA HONG SEMI at 7.09%. The ETF excludes large-cap internet companies like Alibaba, Tencent, and Meituan, offering higher focus and making it easier to capture the Hong Kong AI hard tech trend. (Data as of March 31, 2026)

The "first in the market" designation refers to Hua Bao's Hong Kong Stock Connect Information Technology ETF (159131) being the first ETF to track the CSI Hong Kong Stock Connect Information Technology Composite Index. As of April 7, 2026, the ETF's latest on-market规模 was 471 million yuan, making it the largest among the three currently listed ETFs tracking this index.

A note on fund fees: The subscription and redemption agents for the Hong Kong Information Technology ETF may charge a commission of up to 0.5%. On-market trading fees are subject to the rates actually charged by securities firms. No sales service fee is charged.

The MACD golden cross signal has formed, indicating positive momentum for these stocks.