In early trading on August 5, AH hard technology stocks continued their rebound, with Haizhi Technology surging 14%, Hongteng Precision rising over 9%, Zhipu gaining more than 8%, and Lenovo Group advancing over 6%. The Hong Kong Stock Connect Information Technology ETF (159131), the largest of its kind and boasting the strongest liquidity, saw its intraday price climb 3% to aim for a third consecutive gain. Its real-time trading volume surpassed 500 million yuan, with the stock price moving above the 20-day moving average.
On the news front, the world's three major memory chip manufacturers—Samsung Electronics, SK Hynix, and Micron Technology—have completely sold out all their production capacity for standard DRAM and HBM (High Bandwidth Memory) through 2027. NAND flash memory, which has a slightly better supply situation, is expected to finalize its capacity quotas for next year within August. Since supply is being prioritized for AI and HPC fields, the capacity allocated to mobile phone and PC manufacturers is very limited.
What is driving the current market trend?
According to the latest research report from Dongwu Securities, AI is driving an explosive increase in HBM demand, while the supply-demand balance for DRAM remains tight. The global memory industry is entering a new expansion cycle. The continuous growth in AI training and inference demand is propelling the rapid increase in shipments of AI chips like GPUs and ASICs. Simultaneously, the capacity, stacking layers, and bandwidth per HBM chip are constantly upgrading, leading to a trend of rising HBM demand both in volume and price. Calculations indicate that global HBM wafer demand is expected to grow from 29,000 wafers per month in 2024 to 442,000 wafers per month by 2028, representing a compound annual growth rate of over 90%.
As HBM continues to displace traditional DRAM wafer capacity, the crowding-out effect of AI on memory is unlikely to ease in the next two years. The global DRAM supply-demand balance will remain tight, supporting strong and sustained expansion demand from memory manufacturers both domestically and internationally.
Why focus on this specific ETF?
The Hong Kong Stock Connect Information Technology ETF (159131) is a rare, "pure-blood" hard technology ETF in the Hong Kong market. It supports T+0 trading, is the first of its kind in the market, and is the largest with the strongest liquidity. Its over-the-counter feeder fund code is 026755. The underlying index, the Hong Kong Stock Connect Information Technology Index, comprises 85% hardware and 15% software. It heavily weights Hong Kong-listed stocks in the semiconductor, electronics, and computer software sectors, covering 60 hard technology companies. Notably, foundry giants Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Semiconductor together account for over 26% of the portfolio. The domestic AI PC leader Lenovo Group has a weighting of over 10%, and the PCB leader Kingboard Holdings and Kingboard Laminates together account for over 11%. These are the highest concentrations among all market products tracking the index.
Furthermore, on June 15, the index added several new hard technology stars to its Hong Kong-listed components, including Zhipu, Shenghong Technology, Tianshu Zhixin, and Biren Technology. The index does not include large-cap internet companies such as Alibaba, Tencent, or Meituan, making it sharper and more effective at capturing the AI hard technology theme in the Hong Kong market. Data source: CSI Index, as of June 30, 2026. Image generated by AI.
Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Fund investments may incur losses. Investors must invest rationally based on their own capital position and risk tolerance, paying close attention to position and risk management. The stocks mentioned in the materials are for demonstration purposes only and do not constitute investment advice of any form, nor do they represent the holdings or trading activities of any fund managed by the firm. Data sources: CSI Index Company, Shanghai and Shenzhen Stock Exchanges. Reference institution opinion source: Dongwu Securities, August 3, 2026, "Semiconductor Equipment Industry Deep Dive: AI Development Drives HBM Demand Explosion, Favoring Semiconductor Equipment Suppliers to Fully Benefit."
Note: "First of its kind in the market" refers to the Hong Kong Stock Connect Information Technology ETF being the first ETF in the market to track the CSI Hong Kong Stock Connect Information Technology Composite Index. As of July 21, 2026, the latest on-market scale of the Hong Kong Stock Connect Information Technology ETF was 2.062 billion yuan, making it the largest among the 8 ETFs tracking the same index. The average daily trading volume of this ETF this year is 938 million yuan, the highest average daily trading volume among the 8 ETFs tracking the same index. The annual historical returns of the underlying CSI Hong Kong Stock Connect Information Technology Composite Index (HKD) from 2021 to 2025 are: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%. The annual volatility from 2021 to 2025 is: 4.13%, 4.63%, 4.00%, 5.49%, and 5.45%. Past performance of an index does not predict future results. Expense details for the ETF: When investors subscribe for or redeem fund shares, the subscription and redemption agency may charge a commission at a standard rate not exceeding 0.5%. The on-market trading fee is subject to the actual charges of the securities company, and no sales service fee is charged. The subscription fee for the Huabao CSI Hong Kong Stock Connect Information Technology ETF Feeder Fund is 0.30% for amounts under 1 million yuan, 0.20% for amounts from 1 million yuan (inclusive) to 2 million yuan, and 1,000 yuan per transaction for amounts of 2 million yuan (inclusive) or more. The redemption fee is 1.50% for holding periods of less than 7 days, and 0.00% for holding periods of 7 days (inclusive) or more; no sales service fee is charged. Risk Warning: The ChiNext AI ETF Huabao passively tracks the ChiNext Artificial Intelligence Index, which has a base date of December 28, 2018, and was published on July 11, 2024. The Hong Kong Stock Connect Information Technology ETF Huabao passively tracks the CSI Hong Kong Stock Connect Information Technology Composite Index, which has a base date of November 14, 2014, and was published on June 23, 2017. The composition of the index components is adjusted periodically according to the index compilation rules. Its back-tested historical performance does not predict the future performance of the index. The index components mentioned in the text are for demonstration purposes only, and the descriptions of individual stocks do not constitute any form of investment advice, nor do they represent the holdings or trading activities of any fund managed by the fund manager. According to the fund manager's assessment, the risk level of the ChiNext AI ETF Huabao and the Hong Kong Stock Connect Information Technology ETF Huabao is R4 (Medium-High Risk), suitable for investors with an aggressive (C4) or higher risk profile. The suitability matching opinion is subject to the sales institution's determination. Any information appearing in this document (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be responsible for any investment decisions they make independently. Furthermore, any views, analyses, or forecasts in this document do not constitute investment advice of any form to readers, and the company is not liable for any direct or indirect losses arising from the use of this content. Fund investments carry risks. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investments require caution. A MACD golden cross signal has formed; these stocks have good momentum!
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