During the morning session on June 8th, the chip and semiconductor sector led the declines. In Hong Kong's hard tech segment, Lenovo Group shares fell nearly 2%, SMIC (Semiconductor Manufacturing International Corporation) dropped over 3%, and Huahong Grace Semiconductor Manufacturing shed more than 5%. The largest and most liquid* Hong Kong Stock Connect Information Technology ETF, Huabao (159131), opened lower and fell nearly 4% before rebounding in volatile trading. As of the time of writing, its losses had narrowed to 2.46%, with a real-time turnover of 546 million yuan.
On the news front, from June 5th to 6th, the U.S. semiconductor sector faced significant selling pressure. The Philadelphia Semiconductor Index fell over 10% in a single day, marking its largest recent daily drop. Broadcom shares plummeted more than 12%, primarily due to its AI business revenue guidance falling short of market expectations. South Korea's semiconductor sector also saw heavy losses today, with Samsung and SK Hynix briefly declining over 9%.
From an industry perspective, according to SIA data, global semiconductor sales in April 2026 reached $110.481 billion, marking 30 consecutive months of year-on-year growth. Within this, Chinese semiconductor sales were $28.88 billion, representing a year-on-year increase of 78.64% and a month-on-month increase of 8.02%.
Key Drivers and Market Analysis
Financial Street Securities points out that, fundamentally, the current semiconductor sector rally is supported by three key pillars. First, a new semiconductor super-cycle driven by AI capital expenditure has been established. Second, the logic of domestic substitution is transitioning from "expectation" to "realization." Third, the earnings elasticity of the price increase cycle is being released. In the current market, whether looking at daily or monthly data, the trading volume share of tech stocks, represented by semiconductors, has reached historical extremes. This extreme market style has also led to increased stock price volatility. While this round of semiconductor market performance has solid industrial logic support, signals such as overly rapid short-term gains, fast valuation expansion, and increased selling by major shareholders should not be ignored. Under a strategy of "following the trend and focusing on leaders," it may be even more crucial to pay attention to timing and risk control.
Performance and Product Focus
Looking at its performance over the past six months, the underlying index of the Hong Kong Stock Connect Information Technology ETF Huabao (159131), which focuses on Hong Kong hard tech—the CSI Hong Kong Stock Connect Information Technology Composite Index—has accumulated gains exceeding 25%. This outperformed the Hang Seng TECH Index by 35%, the Hong Kong Stock Connect Technology Index by 34%, and the Hong Kong Stock Connect Internet Index by over 50% over the same period, demonstrating significantly sharper and more elastic performance.
Statistical period: November 4, 2025 to June 4, 2026. The historical annual returns of the Hong Kong Stock Connect Information Technology Composite Index for 2021-2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively. Past index performance does not indicate future results.
Supporting T+0 trading! Focused on Hong Kong hard tech—the market's first, largest, and most liquid Hong Kong Stock Connect Information Technology ETF, Huabao (159131). Its feeder fund code is 026755. The underlying index is composed of "80% hardware + 20% software," heavily weighted towards Hong Kong-listed "semiconductors + electronics + computer software." It covers 52 Hong Kong-listed hard tech companies, with its largest constituent, Lenovo Group, having a weight of 16.10%. This is currently the index with the highest Lenovo Group weighting among all indices with linked products in the market. The index components do not include large-cap internet companies like Alibaba, Tencent, or Meituan, giving it a sharper focus and making it more effective at capturing the Hong Kong AI hard tech market trend. (Data as of May 29, 2026)
Data source: China Securities Index Co., Ltd., Shanghai and Shenzhen Stock Exchanges.
Note: "First in the market" refers to the Hong Kong Stock Connect Information Technology ETF Huabao being the first ETF to track the CSI Hong Kong Stock Connect Information Technology Composite Index. As of May 29, 2026, the latest on-exchange size of the Hong Kong Stock Connect Information Technology ETF Huabao was 1.346 billion yuan, making it the largest among the 8 ETFs currently tracking the CSI Hong Kong Stock Connect Information Technology Composite Index. Its average daily turnover year-to-date is 372 million yuan. The historical annual returns of the underlying index, the CSI Hong Kong Stock Connect Information Technology Composite Index (HKD), for 2021-2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively. Past index performance does not indicate future results.
Fund Fee Information: The subscription and redemption agents for the Hong Kong Stock Connect Information Technology ETF Huabao may charge a commission of up to 0.5%. On-exchange trading fees are subject to the actual charges by securities firms. No sales service fee is charged.
Institutional View Source: Financial Street Securities report "Index Fluctuates and Falls, Semiconductor Sector Rises Significantly".
Risk Disclosure: The Hong Kong Stock Connect Information Technology ETF Huabao and its feeder fund passively track the CSI Hong Kong Stock Connect Information Technology Composite Index. The base date for this index is November 14, 2014, and it was launched on June 23, 2017. The index constituents mentioned in the material are for illustrative purposes only. Descriptions of individual stocks do not constitute any form of investment advice and do not represent the holdings or trading动向 of any fund managed by the manager. This product is issued and managed by Huabao Fund. Distributors do not assume responsibility for the investment or redemption of the product. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Key Facts Statement," and other fund legal documents to understand the fund's risk-return characteristics and choose a product suitable for their own risk tolerance. Past fund performance does not predict its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment involves risks! The fund manager assesses this fund's risk等级 as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. Distributors (including the fund manager's直销机构 and other distributors) assess this fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by distributors and base their decisions on the matching results. Appropriateness opinions from different distributors may not necessarily be consistent, and the fund risk等级 evaluation results issued by fund distributors shall not be lower than the risk等级 evaluation results made by the fund manager. There may be differences between the fund's risk-return characteristics as described in the fund contract and its risk等级 due to different considerations. Investors should understand the fund's risk-return situation,结合 their own investment objectives, horizon, experience, and risk tolerance to谨慎 choose fund products and bear the risks themselves. The CSRC's registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks; investment requires caution.
A MACD golden cross signal has formed, and these stocks are performing well!
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