On April 8, a reversal occurred on the "ultimatum day" related to Trump, as the US and Iran entered substantive negotiations, boosting market sentiment in Hong Kong and triggering a significant rebound from lower levels. The Hang Seng Tech Index opened higher and extended gains, rising 3.9% during the session. If it maintains this strength by the close, it is set to record its largest single-day increase in nearly four months. The secondary market price of ChinaAMC Hang Seng Stock Connect Tech ETF (159101.SZ) also surged significantly. Among its holdings, Hua Hong Semiconductor rose over 12%, while SMIC, Kingsoft Cloud, and SenseTime gained over 7%. Meituan and Xiaomi advanced more than 4%. Since the beginning of the year, Hong Kong technology stocks have diverged from the Hang Seng Index. The Hang Seng Tech Index has fallen 15% year-to-date, and the CSI Hong Kong Stock Connect Tech Index has dropped 13%, while the Hang Seng Index declined only 2% over the same period. Zhang Yidong, Chief Economist at Haitong International, pointed out that the volatility seen in both A-shares and Hong Kong stocks since the start of the year is akin to "innocent bystanders getting hurt in a conflict," but this does not alter the medium to long-term trend. He expects both markets to potentially reach new yearly highs in the second half. The recent period of consolidation and adjustment appears more like gathering momentum for a rebound; sometimes, one must crouch lower to jump higher. In terms of allocation priorities, Zhang Yidong recommends focusing on gold, energy, and resources before a ceasefire. After a ceasefire, within safe assets, he suggests retaining only gold, while shifting more consideration to high-tech, hard tech, and advanced manufacturing. A-share investors can gain exposure to the undervalued rebound in Hong Kong tech assets through related ETFs, such as the ChinaAMC Hang Seng Stock Connect Tech ETF (159101.SZ), which offers low entry barriers, risk diversification, and supports T+0 trading. This ETF passively tracks the CSI Hong Kong Stock Connect Tech Index and, compared to the Hang Seng Tech Index, covers a broader range of distinctive Hong Kong-listed tech assets. It aggregates four core sectors: internet software and applications (e.g., Tencent, Alibaba, Meituan), semiconductors (e.g., SMIC, Hua Hong Semiconductor), advanced Chinese manufacturing (e.g., BYD, Li Auto, XPeng Group, UBTech), and innovative pharmaceuticals (e.g., BeiGene, Akeso, Innovent Biologics). It serves as a foundational holding for capturing the "new quality productive forces" in Hong Kong's distinctive tech sector.
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