In afternoon trading on June 9th, simultaneous strength in the chip, semiconductor, PCB, and AI PC sectors drove a robust upward move in Hong Kong's hard-tech segment. The Hang Seng Stock Connect Information Technology C Index surged over 4%, significantly outperforming the Hang Seng Tech Index, which rose 1.1%. PCB giant Kingboard Holdings Ltd soared more than 22%, foundry leader SMIC gained over 5%, and AI PC concept stock LENOVO GROUP advanced more than 4%. The largest and most liquid* ETF tracking this space, the Huabao Hang Seng Stock Connect Information Technology ETF (159131), strengthened in afternoon trade, currently up 5.87% and reclaiming its 5-day, 10-day, and 20-day moving averages in one move, with real-time turnover exceeding 2 billion yuan.
Analysis suggests the AI technology rally has not yet peaked, with current adjustments representing normal volatility. The market is expected to navigate a choppy path in June, with key focus on three variables: developments in US-Iran tensions; upcoming US inflation data; and the tone of the new Federal Reserve Chair's first policy meeting. Overseas investors currently maintain a conservative stance on US Treasury pricing. The view is that the Fed is unlikely to raise rates hastily in the near term. Should the meeting convey a neutral or dovish signal, the so-called "Fed put" could be reactivated, opening a window for a rebound in risk assets. Hong Kong equities offer attractive risk-reward odds, warranting attention for potential catch-up gains. The US AI rally is broadening from hardware to software applications, a trend with which Hong Kong markets could resonate.
Over the past six months, the underlying index of the hard-tech-focused Huabao Hang Seng Stock Connect Information Technology ETF (159131)—the CSI Hang Seng Stock Connect Information Technology Composite Index—has accumulated gains exceeding 15%. This performance has outpaced the Hang Seng Tech Index by 31%, the Hang Seng Stock Connect Technology Index by 30%, and the Hang Seng Stock Connect Internet Index by over 44%, demonstrating notably superior sharpness and elasticity.
Statistical period: November 8, 2025, to June 8, 2026. The annual historical returns for the Hang Seng Stock Connect Information Technology C Index from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%, respectively. Past index performance is not indicative of future results.
The ETF supports T+0 trading. As the market's first, largest, and most liquid ETF tracking the hard-tech theme in Hong Kong via Stock Connect, the Huabao Hang Seng Stock Connect Information Technology ETF (159131) has an off-exchange feeder fund with code 026755. Its underlying index is structured as "80% hardware + 20% software," heavily weighted towards Hong Kong-listed "semiconductors + electronics + computer software." It encompasses 52 hard-tech companies. The combined weight of the two major foundry giants, SMIC and HUA HONG SEMI, exceeds 21%, the highest among all indices with linked products. Domestic AI PC leader LENOVO GROUP holds an 18.20% weight, also the highest index representation in the market. The combined weight of PCB leaders Kingboard Holdings Ltd and Kingboard Laminates Holdings Ltd is over 8%, again the highest index concentration available. The index excludes large-cap internet firms such as Alibaba, Tencent, and Meituan, resulting in higher sharpness and a greater ability to capture the AI hard-tech rally in Hong Kong.
*Note: "First in the market" refers to the ETF being the first to track the CSI Hang Seng Stock Connect Information Technology Composite Index. As of May 29, 2026, the ETF's latest on-exchange size was 1.346 billion yuan, making it the largest among the eight ETFs currently tracking the index. Its average daily turnover year-to-date is 372 million yuan. The annual historical returns for the underlying CSI Hang Seng Stock Connect Information Technology Composite Index (HKD) from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%, respectively. Past index performance is not indicative of future results.
Fee Information: The ETF's subscription and redemption agents may charge a commission of up to 0.5%. On-exchange trading fees are subject to the rates set by securities firms. No sales service fee is charged.
Risk Disclosure: The Huabao Hang Seng Stock Connect Information Technology ETF and its feeder fund passively track the CSI Hang Seng Stock Connect Information Technology Composite Index, which has a base date of November 14, 2014, and was launched on June 23, 2017. The mention of index constituents is for illustrative purposes only and does not constitute investment advice of any form, nor does it represent the holdings or trading intentions of any fund managed by the asset manager. This product is issued and managed by Huabao Fund. Distributors are not responsible for the investment performance or redemption of the product. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement, and other legal documents to understand the fund's risk-return characteristics and select products suitable for their own risk tolerance. Past fund performance does not predict future results. The performance of other funds managed by the manager does not guarantee the performance of this fund. Fund investment involves risks. The fund manager assesses this fund's risk level as R4 (Medium-High Risk), suitable for Aggressive (C4) and above investors. Distributors (including the fund manager's direct sales channels and other distributors) evaluate the fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the suitability assessment opinions provided by distributors and base their decisions on the matching results. Suitability opinions from different distributors may not be consistent, and a distributor's risk rating of a fund product cannot be lower than the risk rating assigned by the fund manager. The description of the fund's risk-return characteristics in the fund contract and its risk rating may differ due to different assessment factors. Investors should understand the fund's risk-return profile and make their own investment decisions, bearing the associated risks, based on their investment objectives, horizon, experience, and risk tolerance. The China Securities Regulatory Commission'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.
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