On June 1st, the CSI Hong Kong Stock Connect Information Technology Composite Index, which focuses on Hong Kong's "hard tech" sector, surged over 2.7%, continuing to outperform the Hang Seng TECH Index (up 1.8% at the time). The index's largest constituent, Lenovo Group, soared 11% to a new all-time high. The largest and most liquid* ETF tracking this index, the Huabao Hong Kong Stock Connect Information Technology ETF (159131), surged 3.03% during the session, with real-time turnover exceeding CNY 600 million and net subscriptions of 5 million units.
The rally follows Dell Technologies' stock closing over 32% higher last Friday, also reaching a record high. Dell raised its full-year revenue forecast to USD 165-169 billion from a prior outlook of USD 138-142 billion. It also increased its fiscal 2027 AI server revenue projection from approximately USD 50 billion to about USD 60 billion. According to Frost & Sullivan data, the global AI server shipment compound annual growth rate from 2020 to 2024 was 45.2%, reaching 2 million units in 2024, with an expected increase to 6.5 million units by 2030.
Huatai Securities noted that Lenovo's business, as a core segment in the AI field and one of the few tech companies with significant operations in both China and the U.S., is poised to benefit from the current wave of development in hybrid artificial intelligence between the two nations, potentially representing the greatest common denominator in the U.S.-China AI technology sector.
Over the past six months, the CSI Hong Kong Stock Connect Information Technology Composite Index, tracked by the Huabao ETF (159131), has gained over 22%. In contrast, the Hang Seng TECH Index and the Hong Kong Stock Connect Technology Index have fallen 12.69% and 11.28%, respectively, during the same period, highlighting the former's sharper performance and greater resilience. Period: 2025.11.29 - 2026.5.29. The annual historical returns for the Hong Kong Stock Connect Information Technology Index from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%. Past index performance is not indicative of future results.
Supporting T+0 trading, the Huabao Hong Kong Stock Connect Information Technology ETF (159131) is the first and largest ETF of its kind with the strongest liquidity, focusing on Hong Kong's hard tech sector. Its feeder fund code is 026755. The underlying index is composed of "70% hardware + 30% software" and is heavily weighted towards Hong Kong-listed "semiconductors, electronics, and computer software" stocks, covering 52 hard tech companies. Lenovo Group is the top constituent with a weight of 16.10%, making this the index with the highest Lenovo exposure among all market products with linked offerings. The index excludes large-cap internet firms like Alibaba, Tencent, and Meituan, resulting in a sharper focus and greater potential to capture the Hong Kong AI hard tech trend. (Data as of 2026.5.29) Source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges.
Note: "First of its kind" refers to the Huabao Hong Kong Stock Connect Information Technology ETF being the first ETF to track the CSI Hong Kong Stock Connect Information Technology Composite Index. As of 2026.5.28, the fund's latest on-market size was CNY 13.40 billion, the largest among the 8 ETFs currently tracking the index. Its year-to-date average daily turnover is CNY 372 million. The underlying CSI Hong Kong Stock Connect Information Technology Composite Index (HKD) had annual historical returns from 2021 to 2025 of: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%. Past index performance is not indicative of future results.
Fee Information: The subscription and redemption agents for the Huabao Hong Kong Stock Connect Information Technology ETF may charge a commission of up to 0.5%. On-market trading fees are subject to the rates charged by securities firms. No sales service fee is charged.
Risk Disclosure: The Huabao Hong Kong Stock Connect Information Technology ETF and its feeder fund passively track the CSI Hong Kong Stock Connect Information Technology Composite Index. The index base date is 2014.11.14, and it was launched on 2017.6.23. The constituent stocks mentioned in this material are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund managed by the asset manager. This product is issued and managed by Huabao Fund. Distributors are not responsible for the product's investment, redemption, or risk management. 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 choose products suitable for their own risk tolerance. Past fund performance does not predict 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 level as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. Distributors (including the fund manager's direct sales channels and other distributors) assess the fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by distributors and base their decisions on the matching results. Suitability opinions from different distributors may not be consistent. The risk rating results for the fund product issued by distributors shall not be lower than the risk rating result determined by the fund manager. There may be differences between the fund's risk-return characteristics as described in the Fund Contract and its risk rating due to different assessment factors. Investors should understand the fund's risk-return profile and choose fund products carefully based on their investment objectives, horizon, experience, and risk tolerance, bearing the risks themselves. 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.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
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