On August 7, A-share and Hong Kong hard technology stocks rallied together, with a single piece of news reigniting the PCB theme. The Hong Kong Stock Connect Information C Index, which focuses on Hong Kong hard tech, surged 2.98%, consistently outperforming the Hang Seng Tech Index (+0.78%). The Hong Kong Stock Connect Information Technology ETF (159131)—the largest and most liquid of its kind in the market—climbed throughout the trading session, closing up 2.87% with a turnover exceeding 2.1 billion yuan, recovering its 20-day moving average.
Among index components, Zhipu led the pack with a nearly 15% gain, while Guanghe Technology and Shenghong Technology rose over 11%. Kingboard Laminates and Lenovo Group both advanced by more than 9%, and stocks such as Kingboard Group, GigaDevice, Legend Holdings, and Biren Technology all posted gains exceeding 6%. Hua Hong Semiconductor added over 3%, and SMIC rose more than 2%.
What sparked the move? Goldman Sachs, in its latest global report on printed circuit boards (PCB) and copper-clad laminates (CCL), sharply raised its forecasts for AI server-related market sizes. The investment bank now expects the global AI server PCB market to reach $375 billion by 2027, a 38% increase from its previous estimate, and to climb to $840 billion by 2028. For the CCL market, Goldman Sachs projects $221 billion in 2027, up 18%, and $480 billion by 2028. This implies compound annual growth rates of 148% and 161% for the AI server PCB and CCL markets, respectively, from 2026 to 2028.
Where to start? According to Galaxy Securities, AI chips are expected to drive sustained demand for high-layer multi-layer PCBs and HDI, while leading CCL manufacturers continue to raise prices, supporting an upward revision in PCB valuations. Listed PCB supply chain leaders have mostly reported strong mid-year earnings forecasts, confirming the continuation of the industrial logic. Looking ahead for Hong Kong tech stocks, Dongwu Securities believes that after a significant deleveraging cycle, AI tech hardware is beginning to show early signs of a rebound. The brokerage suggests that Hong Kong stocks are still in a window for catch-up gains, with clear structural opportunities. However, it notes that the market faces short-term risks of stalling or pullbacks, and whether the rally can extend into August will depend on two key factors: First, whether former President Donald Trump can strongly promote "TACO" to ease macro pressures. Recent geopolitical uncertainties have kept market pricing cautious, and the Fed's ambiguous stance, coupled with high 10-year U.S. Treasury yields, represents the heaviest drag on the current global equity rebound. A further easing of tensions and a drop in oil prices, which could drive down bond yields, would significantly improve risk appetite and benefit Hong Kong's liquidity and valuation recovery. Second, the rebound in AI tech hardware has a dual impact on Hong Kong stocks. The AI hardware rally, led by U.S. stocks, has shown early signs of a rebound. In the short term, capital may not significantly flow back to tech hardware, but it could divert some attention away from Hong Kong. If AI mid- and downstream companies in the U.S. report strong earnings and the rally broadens, it could actually benefit the Hong Kong tech index through a spillover effect. Hong Kong's valuation advantages and policy support in AI applications, internet platforms, and domestic computing power chains could attract capital inflows.
The Hong Kong Stock Connect Information Technology ETF (159131) is the market's first, largest, and most liquid ETF of its kind, supporting T+0 trading. Its over-the-counter feeder fund code is 026755. The underlying index, Hong Kong Stock Connect Information C, is composed of 85% hardware and 15% software, heavily weighting Hong Kong's "semiconductor, electronics, and computer software" sectors. It covers 60 Hong Kong hard-tech companies, with foundry giants SMIC and Hua Hong Semiconductor together accounting for over 26% of the weight. Domestic AI PC leader Lenovo Group has a weight of over 10%, and PCB leaders Kingboard Group and Kingboard Laminates together account for more than 11%. These are the highest concentrations among all products tracking similar indices. Additionally, on June 15, the index added new Hong Kong hard-tech names like Zhipu, Shenghong Technology, Tianshu Zhixin, and Biren Technology. The index excludes large-cap internet companies such as Alibaba, Tencent, and Meituan, offering sharper exposure to capture the AI hard-tech rally in Hong Kong.
Disclaimer: Data sourced from CSI Index as of June 30, 2026. Images are AI-generated. The market may experience significant volatility, and short-term gains or losses are not indicative of future performance; fund investments may incur losses. Investors must make rational decisions based on their own financial situation and risk tolerance, paying close attention to position and risk management. The stocks mentioned are for illustrative purposes only and do not constitute investment advice, nor do they represent the holdings or trading strategies of any fund managed by the issuer. Data sources: CSI Index, Shanghai and Shenzhen Stock Exchanges. Reference institutional views: Galaxy Securities, July 26, 2026, "Electronic Valuation Converging, MLCC and PCB Fundamentals Strong"; Dongwu Securities, August 5, 2026, "Technology Rebounds, What About Hong Kong Stocks?" Note: "Market's first" refers to the Hong Kong Stock Connect Information Technology ETF being the first ETF tracking the CSI Hong Kong Stock Connect Information Technology Index. As of July 21, 2026, the ETF's on-market scale was 2.062 billion yuan, the largest among eight ETFs tracking the same index. Its year-to-date average daily turnover was 938 million yuan, the highest among those eight. The CSI Hong Kong Stock Connect Information Technology Index (HKD) had annual returns of -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% from 2021 to 2025, with annual volatilities of 4.13%, 4.63%, 4.00%, 5.49%, and 5.45%, respectively. Past performance does not guarantee future results. Fee details: For ETF subscriptions/redemptions, agents may charge up to 0.5% commission. On-market trading fees are determined by the broker; no sales service fee applies. For the feeder fund, subscription fees are 0.30% for amounts under 1 million yuan, 0.20% for 1-2 million yuan, and 1,000 yuan for 2 million yuan and above. Redemption fees for individuals are 1.50% for holding periods under 7 days and 0% for 7 days or more. For institutional investors, fees are 1.50% for under 7 days, 1.00% for 7-30 days, 0.50% for 30-180 days, and 0% for 180 days or more. No sales service fee applies. Risk warning: The fund passively tracks the index. The index's back-tested historical performance does not guarantee future results. Stocks shown are for demonstration only and do not constitute investment advice or represent fund holdings. The fund's risk rating is R4 (medium-high risk), suitable for aggressive (C4) and above investors. Any information in this article is for reference only and does not constitute investment advice. The fund manager is not liable for any losses from using this information. Fund investment involves risk; past performance does not guarantee future returns. MACD golden cross signals are forming; these stocks are showing strong momentum.
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