After several days of declines, Hong Kong's technology sector opened higher in early trading today, though performance remained volatile. Recent pressures on the sector have been attributed to intense internal competition among companies, challenges from new AI players, and tightening global liquidity. Despite these headwinds, capital continues to flow into the sector against the trend. Since the beginning of 2026, the Hong Kong tech sector has seen cumulative net inflows exceeding 720 billion yuan. Among these, the Hang Seng Tech ETF (513130) has emerged as a primary magnet for capital. It has recorded net subscriptions for ten consecutive trading days (from February 11, 2026, to March 4, 2026) and has attracted over 140 billion yuan in additional investments year-to-date.
Several factors make the Hang Seng Tech Index noteworthy at present. First, its valuation has fallen to a relatively low level, around the 9.58th percentile over the past five years, suggesting that prices may already reflect significant pessimism. Second, with the annual report season approaching, more catalysts are expected. Additionally, after certain restricted periods, some major companies may resume share buybacks, and increased buying from southbound capital could improve market liquidity. Third, the acceleration of AI commercialization may allow large companies to leverage their advantages in computing power, data, and capital more effectively.
The Hang Seng Tech ETF (513130) tracks the Hang Seng Tech Index, which represents influential, liquid leaders in China's core internet and hard technology sectors. It is widely regarded as a barometer and core asset for Chinese tech stocks, playing a key role in the AI narrative within the Chinese market. Given its low valuation, support from southbound capital, and the speeding up of AI commercialization, the ETF's potential for medium- to long-term recovery merits attention.
Supporting intraday T+0 trading, the Hang Seng Tech ETF (513130) is one of the mainstream tools for allocating to Hong Kong's tech sector, recognized by many investors. It has a substantial size advantage with latest assets under management reaching 49.171 billion yuan. Its average daily turnover year-to-date exceeds 5.6 billion yuan, making it the only ETF tracking the Hang Seng Tech Index with an average daily turnover above 5 billion yuan during this period. The management fee for the product is 0.2% per annum.
The fund manager of Hang Seng Tech ETF (513130) and its feeder funds (Class A: 015310, Class C: 015311), Huatai-PineBridge Fund, was among the first ETF managers in China. For years, it has been committed to providing investors with transparent, easily tradable, and low-cost index-tracking products. Two of its flagship ETFs—Huatai-PineBridge CSI 300 ETF (510300) and Huatai-PineBridge A500 ETF (563360)—are highly popular in the market and currently lead their respective categories in size. Their management fee is 0.15% per annum, and the custody fee is 0.05% per annum, among the lowest tiers for equity index funds in the market.
A bullish MACD crossover signal has formed, indicating positive momentum for several stocks.
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