Computing Power Sector May Still See Gains in August? Largest Hong Kong Stock Connect IT ETF (159131) Closes 1.42% Higher on Volume, Attracting 53 Million Units in Net Inflows
Today (July 29), Hong Kong's hard-tech stocks staged a rebound. The largest and most liquid* Hong Kong Stock Connect IT ETF Huabao (159131) surged as much as 2.73% in early trading before paring gains and fluctuating lower. It picked up again in the final stretch, closing 1.42% higher with a turnover exceeding 2.8 billion yuan, marking a notable increase in volume compared to recent days. After a three-session pause, capital returned to add positions, with single-day subscriptions of 53 million units and net subscriptions of 23 million units.
Among the constituent stocks, a clear divergence emerged between software and hardware names. Meitu Inc surged 13%, Xiaomi Corp -W rose over 9%, Kingdee International Software Group Co Ltd gained over 8%, 51WORLD and BYD Electronic International Co Ltd both climbed over 6%, and Sunny Optical Technology Group Co Ltd advanced more than 5%. In contrast, Semiconductor Manufacturing International Corp (SMIC), Lenovo Group Ltd, and Hua Hong Semiconductor Ltd closed in the red.
Fund Manager's View on the Computing Power Outlook
Fund manager of the Hong Kong Stock Connect IT ETF Huabao (159131) Cao Xuchen stated that the team maintains its earlier judgment that the computing power sector is expected to stage a phased rally between August and September, although the overall upside for market indices may narrow. The current market decline is not yet sufficient to warrant a revision of core views.
Regarding key upcoming catalysts, the timeline is as follows: First, from July 22 to July 30, the four major cloud service providers — Google, Microsoft, Meta, and Amazon — will release their quarterly reports, with a focus on the impact of capital expenditure on fundamentals. Second, on August 7, the US July non-farm payrolls and unemployment rate data will be released, influencing the pace of interest rate cuts and liquidity expectations. Third, on August 26, Nvidia will disclose its earnings, with attention on its Beta acceleration.
Cao Xuchen noted that the critical period for the tech sector is now concentrated over the next two weeks, and investors should remain calm, waiting for substantive verification of fundamental data. Recent market rumors, such as favorable price pass-through in the PCB segment driving related stocks higher, or weaker-than-expected pricing for 1.6T optical modules causing sharp declines, are short-term noise with limited reference value. The current "search for reasons in charts" behavior in the market essentially reflects capital rotation and insufficient liquidity.
In terms of allocation direction, the ChiNext AI ETF Huabao (159363) focuses on the optical module theme, while the Hong Kong Stock Connect IT ETF Huabao (159131) is centered on FAB (foundries). At this stage, the tech sector should not be overly sold down. Although rebounds have repeatedly been hit by bearish candles, pursuing extreme low-point trading strategies now lacks substantive meaning.
Exclusive Pure Hard-Tech Exposure in Hong Kong
Supporting T+0 trading! The first of its kind, the largest and most liquid* Hong Kong Stock Connect IT ETF Huabao (159131) (off-exchange feeder fund code: 026755) tracks the Hang Seng Stock Connect IT Index, which is composed of "85% hardware + 15% software." It heavily weights Hong Kong-listed "semiconductors + electronics + computer software" and includes 60 hard-tech companies. Among them, the two major foundry giants SMIC and Hua Hong Semiconductor together account for over 26% of the weight. The domestic AI PC leader Lenovo Group has a weight of over 10%, and PCB leaders Kingboard Holdings Ltd and Kingboard Laminates Holdings Ltd together account for over 11% of the weight—giving it the highest exposure among products linked to this index. Additionally, on June 15, the index added several new hard-tech names such as SmartMore Corp, Shengyi Technology Co Ltd, DapuStor Technology Co Ltd, and Biren Technology Co Ltd. Importantly, the index excludes large-cap internet companies like Alibaba, Tencent, and Meituan, offering higher sharpness and making it easier to capture Hong Kong's AI hard-tech trends.
Data source: China Securities Index, as of June 30, 2026. Chart generated by AI. Market volatility may be significant in the near term; short-term gains or losses do not predict future performance, and fund investments may incur losses. Investors must rationally invest based on their own capital positions 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 under management. Data source: China Securities Index, Shanghai and Shenzhen stock exchanges. Note: "First of its kind" refers to the Hong Kong Stock Connect IT ETF Huabao being the first ETF in the market to track the CSI Hong Kong Stock Connect IT Composite Index. As of June 30, 2026, the fund's latest on-exchange size was 19.79 billion yuan, making it the largest among the eight ETFs tracking the same index. Year-to-date, the ETF's average daily turnover was 6.89 billion yuan, the highest among the eight ETFs. Fee details: Investors may be charged a commission of up to 0.5% by the subscription and redemption agent. On-exchange trading fees are subject to the actual charges of the securities firm, with no sales service fee. The feeder fund for the Huabao CSI Hong Kong Stock Connect IT ETF Index has a subscription fee of 0.30% for amounts under 1 million yuan, 0.20% for amounts between 1 million and 2 million yuan, and a flat fee of 1,000 yuan for amounts of 2 million yuan or more. Redemption fees for individual investors: 1.50% for holding periods of less than 7 days, 0.00% for 7 days or more. For institutional investors: 1.50% for less than 7 days, 1.00% for 7 to 30 days, 0.50% for 30 to 180 days, and 0.00% for 180 days or more. No sales service fee. Risk warning: The ChiNext AI ETF Huabao passively tracks the ChiNext AI Index, with a base date of December 28, 2018, and a release date of July 11, 2024. The Hong Kong Stock Connect IT ETF Huabao passively tracks the CSI Hong Kong Stock Connect IT Composite Index, with a base date of November 14, 2014, and a release date of June 23, 2017. Index constituent stocks are adjusted according to the index compilation rules. Historical performance does not predict future index performance. The index constituent 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. According to the fund manager's assessment, the risk level of the ChiNext AI ETF Huabao and the Hong Kong Stock Connect IT ETF Huabao is R4 (medium-high risk), suitable for aggressive (C4) and above investors. The suitability matching opinion should be based on the sales institution. Any information appearing in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors are solely responsible for their own investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice to readers and shall not be held liable for any direct or indirect losses arising from the use of this content. Fund investment involves risk. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Invest in funds cautiously. MACD golden cross signal forming, these stocks are showing good momentum!
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