During Monday morning trading, Hong Kong hard-tech stocks steadily strengthened, with SenseTime surging over 8%, while SMIC and Hua Hong Semiconductor both gained over 7%. GigaDevice, KB Group, Kingboard Holdings, and Fortior Technology also rose more than 6%. The Hong Kong Connect Information Technology ETF (Code: 159131), the largest of its kind with the strongest liquidity*, saw its intraday price oscillate higher, now up 2%, with real-time turnover quickly reaching 982 million yuan.
Notably, a key weight in the Hong Kong Connect Tech Index, SMIC, recently reported its financial results. For the second quarter of 2026, the company achieved sales revenue of $3 billion, a sequential increase of 20%, exceeding its previous guidance. Gross margin stood at 25.3%, up 5.2 percentage points quarter-over-quarter, while capacity utilization reached 93.7%. The company forecasts third-quarter revenue to grow 2% to 4% sequentially, with gross margin between 26% and 28%, expressing an optimistic outlook for the second half of the year. Guosheng Securities noted that the industry leader's earnings beat, combined with a positive Q3 outlook, signals a clear upward cycle for China's wafer foundry industry. With the spillover effects of AI demand, accelerated domestic substitution, and an industry cyclical recovery creating a triple resonance, the entire semiconductor supply chain is poised for systematic development opportunities.
The Hong Kong market offers a scarce "pure" hard-tech exposure with T+0 trading support. As the market's first ETF of its kind, the largest in its category, and with the highest liquidity, the Hong Kong Connect Information Technology ETF (Code: 159131) has an off-exchange feeder fund code of 026755. Its underlying index, the Hong Kong Connect Information Technology Composite Index, is composed of 85% hardware and 15% software. It heavily weights Hong Kong-listed "semiconductor + electronics + computer software" stocks, covering 60 hard-tech companies. The combined weight of two major wafer foundry giants, SMIC and Hua Hong Semiconductor, exceeds 26%. The domestic AI PC leader Lenovo Group holds a weight of over 10%, and the PCB leaders Kingboard Holdings and KB Group together account for over 11% of the index*. These three groups represent the highest sector concentrations among all on-market products linked to such indices. Furthermore, on June 15, the index added several new hard-tech names, including Zhipu AI, Victory Giant Technology, Iluvatar CoreX, and Biren Technology. The index excludes large-cap internet companies like Alibaba, Tencent, and Meituan, offering a sharper focus to better capture the Hong Kong AI hard-tech rally.
Data source: CSI Index, as of June 30, 2026. Image generated by AI. Recent market conditions may be volatile, and short-term gains or losses do not predict future performance. Fund investments carry the risk of potential losses. Investors must make rational decisions based on their own capital situation and risk tolerance, paying close attention to position management and risk control. The stocks mentioned in this material are for illustrative purposes only and 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. Data sources: CSI Index Company, Shanghai and Shenzhen Stock Exchanges. Reference institutional view source: Huatai Securities, August 15, 2026, "SMIC's Record Performance Confirms Industry Upturn, Memory Revaluation Logic Strengthens."
Note: "Market's first" refers to the Hong Kong Connect Information Technology ETF being the first ETF in the market to track the CSI Hong Kong Connect Information Technology Composite Index. As of August 11, 2026, the on-market scale of the Hong Kong Connect Information Technology ETF was 2.414 billion yuan, making it the largest among the 8 ETFs tracking the same index. Year-to-date, the average daily trading volume of this ETF is 1.079 billion yuan, the highest among the 8 ETFs tracking the same index. The annual historical returns of the underlying CSI Hong Kong Connect Information Technology Composite Index (HKD) from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%. The annualized volatilities from 2021 to 2025 were: 4.13%, 4.63%, 4.00%, 5.49%, and 5.45%. Past performance of the index is not indicative of future results. Fee information: Investors subscribing or redeeming fund shares may be charged a commission of up to 0.5% by the authorized agent. On-exchange trading fees are subject to actual charges by the securities company, with no sales service fee. The subscription fee for the Huabao CSI Hong Kong Connect Information Technology ETF Feeder Fund is 0.30% for amounts under 1 million yuan, 0.20% for amounts between 1 million yuan (inclusive) and 2 million yuan, and a flat fee of 1,000 yuan for amounts of 2 million yuan (inclusive) or more. The redemption fee for individual investors is 1.50% for holdings within 7 days and 0.00% for holdings of 7 days or more. For institutional investors, the redemption fee is 1.50% for holdings within 7 days, 1.00% for holdings between 7 days (inclusive) and 30 days, 0.50% for holdings between 30 days (inclusive) and 180 days, and 0.00% for holdings of 180 days (inclusive) or more. No sales service fee is charged.
Risk Disclaimer: The Hong Kong Connect Information Technology ETF passively tracks the CSI Hong Kong Connect Information Technology Composite Index. The index base date is November 14, 2014, and it was published on June 23, 2017. The composition of index constituents is adjusted according to the index's construction rules. Its back-tested historical performance does not indicate future index performance. The index constituents mentioned in this document are for display purposes only, and 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 Hong Kong Connect Information Technology ETF is R4 (Medium-High Risk), suitable for aggressive (C4) and above investors. Please refer to the sales institution's suitability matching opinion. Any information appearing in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be solely responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers in any form, and the author is not liable for any direct or indirect losses arising from the use of the content herein. Fund investments carry risks. Past performance of a fund does not guarantee future results. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Invest in funds with caution.
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