Leveraged ETF Surges Over 3% as Tech Earnings Season Approaches

The Hang Seng Tech Index leveraged ETF (07226) rose more than 3%, gaining 3.72% to HK$3.852 by the time of writing, with a trading volume of HK$876 million. The Hang Seng Tech Index itself advanced nearly 2% during late trading. Market movements are being influenced by the upcoming earnings reports from major U.S. technology giants and geopolitical developments involving the U.S. and Iran, both expected to steer the direction of the Hang Seng Tech Index this week. According to analysis from the Chen Meng team at Soochow Securities, earnings releases from several leading tech companies including Microsoft, Amazon.com, Meta Platforms, Inc., Alphabet, and Apple are scheduled this week, coinciding with key U.S. economic data such as preliminary first-quarter GDP and core PCE figures. This convergence will simultaneously test tech sector fundamentals and introduce macroeconomic volatility. The team recommends focusing on value and dividend-paying stocks as a core strategy, suggesting that upstream AI hardware can serve as a value anchor, with its momentum influenced by U.S. tech earnings. Additionally, attention is advised on Chinese assets with global scarcity, such as new energy and innovative pharmaceuticals. Everbright Securities noted that the recent irrational correction in the Hang Seng Tech Index has sufficiently released short-term sentiment risks. The index currently exhibits four bottoming characteristics: being oversold and undervalued, attracting contrarian capital inflows, benefiting from positive AI industry fundamentals, and anticipating increased corporate buybacks. These factors provide clear support for the sector and significantly enhance its investment appeal, creating a strategic window for medium to long-term allocation. The recent adjustment is viewed as a sentiment-driven fluctuation that has not altered the underlying fundamental trend. As market sentiment recovers, incremental capital converges, and leading companies implement buyback programs, the index is positioned for a potential phased rebound.