On Wednesday morning (March 11), the Hang Seng Tech Index continued its strong performance, targeting a fourth consecutive day of gains. Hong Kong-listed hard technology stocks also showed strength, with HUA HONG SEMI leading the advance, rising nearly 6%. Kingsoft Cloud Holdings gained over 5%, while Sunny Optical Technology, Tianyue Advanced, and Cowell E Holdings each rose more than 3%. The market's only Hong Kong Information Technology ETF (159131) opened slightly higher and surged over 1% at one point. As of writing, it was up 0.81% intraday, reclaiming its 10-day moving average.
According to quarterly performance forecasts from Chuangyang Data, HUA HONG SEMI is projected to report Q1 revenue between $653 million and $687 million, representing year-on-year growth of 20.7% to 27.0%. Net profit is forecasted to be between $23 million and $49 million, surging 513.3% to 1206.7% compared to the same period last year. Additionally, on March 10, VeriSilicon Microelectronics, a company with a market cap of over 100 billion yuan, announced plans to issue H-shares for listing on the Hong Kong Stock Exchange. It was reported that VeriSilicon's revenue grew 36% to 3.15 billion yuan in 2025.
Cao Xuchen, fund manager of the Hong Kong Information Technology ETF (159131), analyzed that since mid-September 2025, global markets have entered a phase of risk preference compression. Amid ample liquidity, inflation-sensitive sectors have outperformed, while valuation-driven sectors have consolidated. We are at a turning point in the contest between inflation-sensitive chains and valuation-earnings chains. If one does not expect the global economy to enter a deflationary phase with significantly tightened liquidity, valuation-earnings chains like the Hong Kong Information Technology ETF, which are at relatively low levels, may already present a strategic entry point with favorable risk-reward ratios.
Targeting the super-cycle in Hong Kong's chip sector! The Hong Kong Information Technology ETF (159131) is the market's first ETF focused on the "Hong Kong chip" industry chain and supports T+0 trading. Its underlying index is composed of "70% hardware + 30% software," heavily weighted towards Hong Kong-listed "semiconductor + electronics + computer software" companies. It covers 42 Hong Kong-listed hard tech firms, with SMIC having a weight of 15.21%, Xiaomi Group-W at 12.08%, and HUA HONG SEMI at 8.68%. The ETF excludes large-cap internet companies like Alibaba, Tencent, and Meituan, offering sharper focus and better capture of Hong Kong's AI hard tech trends. (Data as of January 30, 2026)
Source: CSI Index Company, Shanghai and Shenzhen Stock Exchanges. Note: "The market's only" refers to being the sole ETF tracking the CSI Hong Kong Stock Connect Information Technology Composite Index. The index sets a maximum single constituent weight of 15%. Weights may fluctuate with market capitalization changes and could temporarily exceed 15%. The index is rebalanced semi-annually, at which point single constituent weights are generally rebalanced to the 15% cap. Recent market volatility may be significant; short-term performance does not indicate future results. Investors should make rational investment decisions based on their financial situation and risk tolerance, paying close attention to position and risk management.
Fund Fee Explanation: Subscription and redemption agents for the Hong Kong Information Technology ETF 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 Hong Kong Stock Connect Information Technology ETF passively tracks the CSI Hong Kong Stock Connect Information Technology Composite Index, which has a base date of November 14, 2014, and was launched on June 23, 2017. The index constituents mentioned are for illustrative purposes only; descriptions of individual stocks are not investment advice and do not represent the holdings or trading activities of any fund managed by the fund manager. This product is issued and managed by Huabao Fund. Distributors are not responsible for the investment, redemption, or risk management of the product. Investors should carefully read the "Fund Contract," "Prospectus," and "Fund Product Summary" to understand the fund's risk-return profile and choose products suitable for their risk tolerance. Past performance does not predict future results. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Invest with caution! The fund manager assesses this fund's risk level as R4 - Medium-High Risk, suitable for Aggressive (C4) and higher risk-rated investors. Sales institutions (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 review the appropriateness opinions provided by sales institutions and base their decisions on the matching results. Appropriateness opinions may vary among sales institutions, and a sales institution's risk rating of a fund product cannot be lower than the rating assigned by the fund manager. Differences may exist between the fund's risk-return characteristics described in the fund contract and its risk rating due to different assessment factors. Investors should understand the fund's risk-return characteristics and make careful selections based on their investment objectives, time horizon, experience, and risk tolerance, bearing investment risks independently. The CSRC's registration of this fund does not indicate a guarantee of its investment value, market prospects, or returns. Funds carry risks; invest cautiously.
MACD golden cross signals have formed, indicating positive momentum for these stocks.
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