In early trading on May 8, Hong Kong's hard tech stocks experienced a minor pullback after two consecutive days of sharp gains. SMIC and Huahong Semiconductor both fell by over 4%. Huabao's HK Connect Information Technology ETF (159131), the largest and most liquid of its kind*, saw its market price drop by 1.33%. Capital accelerated its entry on the dip, with real-time subscriptions reaching 16 million units.
Central China Securities pointed out that global monthly semiconductor sales continue to show year-on-year growth, and overseas cloud providers have raised their capital expenditure plans for 2026. Global semiconductor sales in March 2026 increased by 79.2% year-on-year and 11.5% month-on-month. According to the latest forecast from Gartner, global semiconductor sales are expected to exceed $1.3 trillion in 2026, a year-on-year increase of 64%.
Downstream demand shows a trend of structural differentiation. Demand for AI computing power hardware infrastructure remains strong. In Q1 2026, the capital expenditures of the four major North American cloud providers - Google, Microsoft, Meta, and Amazon - increased by 81% year-on-year and 10% quarter-on-quarter, and they have raised their 2026 capital expenditure plans. In Q4 2025, the capacity utilization rates of SMIC, Huahong, and UMC remained largely flat quarter-on-quarter, with Huahong continuing to operate at full capacity. According to SEAJ data, global semiconductor equipment sales increased by 8% year-on-year in Q4 2025, while sales in China increased by 11% year-on-year.
Central China Securities believes the semiconductor industry is still in an upward cycle, with AI being a key driver for the sector's growth.
Since rebounding from its low on March 31, the underlying index of the Huabao HK Connect IT ETF (159131) - the CSI HK Connect Information Technology Composite Index - has accumulated a gain of 28.39%. Over the same period, the Hang Seng Tech Index and the HK Connect Tech Index rose by 5.95% and 8.62% respectively, indicating the former's significantly sharper and more elastic performance.
Statistical period: March 31, 2026 - May 7, 2026. The annual historical returns of the HK Connect Information C Index for 2021-2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively. Past performance of the index is not indicative of future results.
Supports T+0 trading! Targeting the super cycle in Hong Kong chip stocks - Huabao's HK Connect Information Technology ETF (159131) is the first of its kind in the market, the largest, and most liquid*. Its feeder fund code is 026755. The underlying index is composed of "70% hardware + 30% software", heavily weighted towards Hong Kong-listed "semiconductors + electronics + computer software". It covers 52 Hong Kong hard tech companies, with SMIC having a weight of 14.21%, Xiaomi Group-W 10.31%, Lenovo Group 9.33%, and Huahong Semiconductor 8.82%. It excludes large-cap internet companies like Alibaba, Tencent, and Meituan, offering higher focus and making it easier to capture the AI hard tech trend in Hong Kong stocks. (As of May 5, 2026)
Data source: CSI Index Company, Shanghai and Shenzhen Stock Exchanges. Note: "First in the market" refers to Huabao's HK Connect IT ETF being the first ETF to track the CSI HK Connect Information Technology Composite Index. As of May 6, 2026, the latest on-market size of Huabao's HK Connect IT ETF is 740 million yuan, making it the largest among the 7 ETFs currently tracking the CSI HK Connect Information Technology Composite Index. Its average daily turnover year-to-date is 166 million yuan. The annual historical returns of the underlying index, the CSI HK Connect Information Technology Composite Index (HKD), for 2021-2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively. Past performance of the index is not indicative of future results.
Fund fee explanation: Agents for Huabao's HK IT ETF subscription and redemption may charge a commission of up to 0.5%. On-market trading fees are subject to the actual charges by securities firms. No sales service fee is charged. *Institutional views reference source: AJ Securities "Electronics Industry Weekly: HBM Iteration Strengthens, Samsung's AI Chip Barriers". Risk warning: Huabao's HK Connect IT ETF and its feeder fund passively track the CSI HK Connect Information Technology Composite Index. The index base date is November 14, 2014, and it was launched on June 23, 2017. The index constituents mentioned are for illustrative purposes only. Descriptions of individual stocks are not investment advice in any form and do not represent the holdings or trading动向 of any fund managed by the management company. This product is issued and managed by Huabao Fund. Selling agencies do not assume responsibility for the product's investment, redemption, or risk management. Investors should carefully read the "Fund Contract", "Prospectus", "Fund Product Summary" and other legal fund documents to understand the fund's risk-return characteristics and choose a product suitable for their own risk tolerance. Past fund performance is not indicative of future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment involves risk! The fund manager assesses this fund's risk rating as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Selling institutions (including the fund manager's direct sales机构和 other selling institutions) evaluate the fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by selling institutions and base their decisions on the matching results. Appropriateness opinions from different selling institutions may not necessarily be consistent, and the risk rating results for the fund product issued by fund selling institutions shall not be lower than the risk rating result determined by the fund manager. There are differences between the fund's risk-return characteristics as described in the fund contract and its risk rating due to different consideration factors. Investors should understand the fund's risk-return profile and carefully select fund products based on their own investment objectives, horizon, experience, and risk tolerance, and bear the risks themselves. The China Securities Regulatory Commission's registration of this fund does not indicate its substantive judgment or guarantee of the fund's investment value, market prospects, or returns. Funds carry risks, investment requires caution.
MACD golden cross signals have formed, and these stocks are performing well!
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