Hong Kong's three major stock indexes all rose today, with the Hang Seng Tech Index showing the strongest upward momentum. The rally was driven by cross-market capital rebalancing and the validation of AI commercialization, leading to gains in Hang Seng Tech ETFs. Meanwhile, a rapid acceleration in automakers' foray into humanoid robotics, coupled with rising expectations for a "15th Five-Year Plan" for intelligent driving, propelled a broad-based rally in auto ETFs.
At the close, the Hang Seng Index rose 1.96% to 25,807.92 points, with total turnover of HKD 312.233 billion. The Hang Seng Tech Index gained 2.84% to 4,864.73 points. Among the top Hong Kong ETFs by size, Tracker Fund of Hong Kong (02800) closed 1.86% higher at HKD 26.28, CSOP Hang Seng Index ETF (03033) rose 2.67% to HKD 4.768, and CSOP HSCEI Daily (2x) Leveraged Product (07709) fell 13.99% to HKD 32.7.
Cross-Market Capital Rebalancing and AI Commercialization Drive Hang Seng Tech ETF Rally
Hang Seng Tech ETFs saw a volatile uptrend. At the close, CSOP Hang Seng Index Daily (2x) Leveraged Product (07226) surged 5.49% to HKD 3.652, iShares Hang Seng Tech ETF (03067) rose 2.71% to HKD 10.24, and CSOP Hang Seng Index ETF (03033) gained 2.67% to HKD 4.768. The sharp decline in the South Korean composite index, due to highly leveraged ETF issues, and the loosening of the US AI hardware bubble triggered global capital rebalancing. This, combined with the strong rally in US-listed Chinese stocks overnight, created a sentiment resonance that drove Hong Kong-listed tech assets to an independent rally.
Guolian Minsheng Securities stated it is optimistic about the revaluation opportunity for Hong Kong tech stocks. The current valuation of the Hong Kong tech sector is relatively low compared to other major global markets, and the Hang Seng Tech Index still holds medium-term allocation value. Platform-based internet companies' cloud businesses maintain high景气度, and AI investment has entered a phase of large-scale commercial returns. Analyst Fang Yi from Guotai Haitong Securities analyzed that the improvement in Hong Kong's micro liquidity is refocusing the market on the investment value of Hong Kong stocks, with both southbound and foreign capital potentially flowing back, which could boost the market upward. Looking ahead, the market awaits the mid-year reports of Hong Kong-listed companies in mid-August to verify fundamental conditions. "If the earnings expectations of major internet companies confirm a turning point, the Hong Kong tech sector could shift from being driven by odds to being driven by winning rates."
Automakers' Humanoid Robot Push and Intelligent Driving Policy Expectations Drive All-Round Auto ETF Rally
Auto ETFs rallied across the board. At the close, E Fund Hong Kong Stock Connect Auto ETF (159121.SZ) rose 6.84% to RMB 0.797, China Universal Hong Kong Stock Connect Auto ETF (159210.SZ) gained 6.15% to RMB 0.898, and GF Hong Kong Stock Connect Auto ETF (520600.SH) increased 6.10% to RMB 1.095. Numerous automakers are intensifying their efforts in humanoid robots. BYD is set to release its humanoid robot in August, XPeng's IRON has started small-scale trial production, and Li Auto's dual-wheel robot is expected to launch this year. The technological overlap between smart cars and humanoid robots exceeds 70%, and their supply chains are highly shared. The market is beginning to extend the valuation logic for automakers from "car manufacturers" to "smart terminals + physical AI platforms." Additionally, the Ministry of Industry and Information Technology stated it will accelerate the formulation and issuance of the "15th Five-Year Plan" for the development of intelligent connected new energy vehicles, further boosting industrial policy expectations.
In a recent view, CICC noted that by mid-2026, the auto sector in the first half of the year has already fully reflected the pressures from weakening domestic demand, rising costs, and downward earnings revisions, with more marginal improvement signals expected in the second half. For passenger cars, focus on high-end, export, and intelligent driving product cycles. For commercial vehicles, watch for global mining infrastructure cycles, exports to Asia, Africa, and Latin America, and the new energy transition. For the supply chain, focus on high-level autonomous driving, AIDC power generation and liquid cooling, humanoid robots, and commercial aerospace, which are AI-related growth areas.
Institutional Views
Morgan Stanley pointed out that global investor interest in Chinese stocks is picking up, and given the current relatively underweight positions, there is a possibility of gradual capital reallocation in the future. Looking ahead, analyst Zhang Sida from Guoyuan International believes that the Hong Kong market may continue to exhibit a "range-bound index with sector rotation" pattern in the short term. Whether this can shift from structural rotation to a trending uptrend depends on three conditions: first, sustained easing of Middle East geopolitical conflicts and energy supply risks to lower oil prices and global inflation expectations; second, sustained southbound capital inflows coupled with increased foreign capital allocation to Hong Kong stocks; and third, whether domestic economic recovery in China can spread from exports and tech production to investment, consumption, and real estate. Until these factors create a共振, the Hong Kong market is likely to continue with structural trends and sector rotation.
ETF News
The N CAITECH Innovation and Entrepreneurship AI ETF (588530.SH) debuted today, closing 0.21% higher at RMB 0.933, with a turnover of RMB 21.8993 million. The fund tracks the CSI STAR & CHINEXT AI Index, primarily investing in AI-related leading companies listed on the STAR Board and ChiNext Board, focusing on the AI industry chain.
Comments