Hong Kong hard-tech stocks staged a strong rebound today (July 29), shaking off the previous session's losses. Minglue Technology surged over 13%, while Xiaomi Group and Zhipu both rose more than 4%. Semiconductor Manufacturing International Corporation (SMIC) and Lenovo Group also turned positive.
The largest and most liquid H-Share Connect Information Technology ETF (159131) opened higher in early trading and continued to climb, currently up 2.84%, with a real-time turnover of 284 million yuan.
On the news front, Xiaomi Group is set to host its "Pengcheng Series" technology launch event on the evening of July 30, where it will officially unveil two new extended-range SUVs. Additionally, Xiaomi has participated in the strategic placement of Changxin Technology's STAR Market IPO and has already established a strategic partnership with the company to co-develop memory chips tailored for Xiaomi's consumer electronics and automotive scenarios, securing production capacity to ensure supply chain stability.
In terms of sales, the combined sales volume of Xiaomi's two models in the Shenzhen market exceeded 12,700 units in the first half of the year. The YU7 model topped the regional sales chart, while the SU7 ranked third, indicating growing market recognition. Other reports suggest that Xiaomi's next-generation flagship smartphone is expected to debut with SK Hynix's mass-produced LPDDR6 memory.
According to a research report from Kaiyuan Securities, Xiaomi has raised its full-year smartphone shipment target for 2026 from approximately 90 million units to 110 million units, an increase of about 16%. The upward revision is primarily driven by low-end models, and the improvement in shipments is expected to boost the performance of Xiaomi's consumer electronics business.
The consumer electronics sector is currently benefiting from the continuous implementation of on-device AI hardware innovations, such as AI smartphones. This is steadily increasing the hardware value per unit, opening up a new growth trajectory for the industry. As a leading player, Xiaomi will directly benefit from this industry innovation trend.
Looking ahead, Soochow Securities believes that with the marginal improvement in capital market dynamics, the upstream hardware sector is expected to see differentiated recovery opportunities in the second half of the year. It recommends favoring directions driven by volume growth logic and segments with high supply barriers and difficult-to-replace technological routes. Some segments within the "price increase" theme have overestimated the long-term supply-demand imbalance, requiring lower expectations and a focus on discerning fact from fiction.
Hong Kong-listed 'pure-play' hard-tech stocks! Supports T+0 trading! The H-Share Connect Information Technology ETF (159131), the first of its kind in the market and the largest and most liquid in its category, has an OTC link fund code of 026755. The underlying index, the H-Share Connect Information Technology Index, is composed of 85% hardware and 15% software. It heavily weights Hong Kong-listed "semiconductors, electronics, and computer software" sectors, covering 60 hard-tech companies.
Key holdings include SMIC and Hua Hong Semiconductor, the two major wafer foundry giants, which together account for over 26% of the index weight. The domestic AI PC leader Lenovo Group accounts for over 10%, while PCB leaders Kingboard Group and Kingboard Laminates together account for over 11%. These weights are among the highest for any index-linked product in the market.
Furthermore, on June 15, the index added several new Hong Kong-listed hard-tech names, including Zhipu, Shenghong Technology, Tianshu Zhixin, and Biren Technology. The constituent stocks do not include large-cap internet companies like Alibaba, Tencent, or Meituan, offering higher "sharpness" and making it easier to capture Hong Kong's AI hard-tech market trends.
Data source: CSI Index, as of June 30, 2026. Image generated by AI. Market conditions may experience significant fluctuations recently, and short-term gains or losses do not predict future performance. Fund investments may incur losses. Investors must make rational investment decisions based on their own capital situation and risk tolerance, paying close attention to position and risk management. The stocks mentioned are for illustrative purposes only and do not constitute any form of investment advice, nor do they represent the holdings or trading activities of any fund managed by the firm. Data source: CSI Index Company, Shanghai and Shenzhen Stock Exchanges. Note: "First of its kind in the market" refers to the H-Share Connect Information Technology ETF being the first ETF to track the CSI H-Share Connect Information Technology Composite Index. As of July 22, 2026, the on-market size of the H-Share Connect Information Technology ETF was 2.319 billion yuan, making it the largest among eight ETFs tracking the same index. The average daily turnover of this ETF this year is 957 million yuan, the highest among the eight ETFs. The annual historical returns of the underlying CSI H-Share 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 volatility rates for 2021-2025 were 4.13%, 4.63%, 4.00%, 5.49%, and 5.45%, respectively. Past index performance does not indicate future results. Fee description: Authorized participants for the H-Share Connect Information Technology ETF may charge a commission of up to 0.5%. On-market trading fees are subject to actual charges by securities firms. No sales service fee is charged. Source of institutional view: Soochow Securities, July 26, 2026, "How to Grasp the Upcoming Tech Hardware Repair Opportunities." Risk warning: The H-Share Connect Information Technology ETF and its linked fund passively track the CSI H-Share Connect Information Technology Composite Index, which was established on November 14, 2014, and published on June 23, 2017. The index constituent stocks shown are for display purposes only, and stock descriptions do not constitute any form of investment advice, nor do they represent the holdings or trading activities of any fund under the management company. This product is issued and managed by Huabao Fund, and the distribution agency does not assume responsibility for the product's investment or payment. Investors should carefully read fund legal documents such as the Fund Contract, Prospectus, and Fund Product Information Summary to understand the fund's risk-return characteristics and select products that match their own risk tolerance. Past fund performance does not indicate future results, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment requires caution! The fund manager assesses the risk level of this fund as R4 (medium-high risk), suitable for active (C4) and above investors. Sales institutions (including the fund manager's direct sales and other sales institutions) will conduct risk assessments on this fund in accordance with relevant laws and regulations. Investors should promptly refer to the suitability opinions provided by the sales institutions and use them as the basis for matching. The suitability opinions of different sales institutions may not be consistent, and the fund product risk level assessment results issued by the fund sales institution shall not be lower than those issued by the fund manager. The fund's risk-return characteristics and risk level in the fund contract may differ due to different considerations. Investors should understand the fund's risk-return profile and carefully select fund products based on their own investment objectives, time horizon, investment experience, and risk tolerance, bearing the risks themselves. The registration of this fund by the China Securities Regulatory Commission does not imply a substantive judgment or guarantee of the fund's investment value, market prospects, or returns. Funds carry risks; invest with caution.
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