Hong Kong's hard tech sector surged again today (June 25th). GigaDevice soared by 8%, and Montage Technology jumped over 6%. The largest and most liquid Hong Kong Connect Information Technology ETF, Huabao (159131), gapped up at the open, rising more than 2% and hitting a new all-time high during the session. On the capital flow front, the fund has seen massive consecutive net inflows over the past two days, totaling over 258 million yuan.
The catalyst came from memory chip giant Micron Technology, which released its latest earnings report early this morning. For its fiscal third quarter of 2026, revenue reached $41.46 billion, a massive year-on-year increase of 346%. Its gross margin reached a remarkable 84.9%, both figures exceeding market expectations. Furthermore, the company's guidance for the fourth fiscal quarter also significantly surpassed market forecasts. Analysis suggests that Micron's report has alleviated market concerns about a "slowdown in AI demand" and "profits nearing a peak." Consequently, Micron's stock price surged in after-hours trading, at one point skyrocketing over 16%. Other U.S. chip stocks also rallied across the board after hours, with Western Digital, SanDisk, and Seagate Technology all surging over 10%.
The fire ignited by Micron confirms the robust health of the semiconductor hardware supply chain. Looking ahead to the second half of the year, Galaxy Securities points out that investment and demand for AI infrastructure and applications are expected to maintain their high momentum. Following the global AI investment cycle, the export competitiveness of AI-related hardware remains strong, and export resilience is anticipated to be robust in the latter half of the year.
Performance Comparison
Over the past six months, the underlying index of the Hong Kong Connect Information Technology ETF Huabao (159131), which focuses on Hong Kong hard tech—the CSI Hong Kong Connect Information Technology Composite Index—has gained 29.8% cumulatively. This performance has outpaced the Hang Seng TECH Index by 50%, the Hong Kong Connect Technology Index by 44%, and the Hong Kong Connect Internet Index by over 64%, demonstrating significantly sharper and more elastic returns.
Key Features of the Leading ETF
This ETF offers a rare, "pure-play" hard tech exposure in the Hong Kong market and supports T+0 trading. As the first and largest ETF of its kind with the strongest liquidity, the Hong Kong Connect Information Technology ETF Huabao (159131) (with its feeder fund code 026755) tracks an index composed of "80% hardware + 20% software." It is heavily weighted towards Hong Kong-listed "semiconductor + electronics + computer software" companies, covering 60 hard tech firms. Notably, the combined weight of the two wafer fabrication giants, SMIC and HUA HONG GRACE, exceeds 24%. The leading domestic AI PC manufacturer, Lenovo Group, holds a weight of over 11%. The combined weight of the PCB leaders, Kingboard Holdings and Kingboard Laminates Holdings, is also over 11%. These three holdings represent the highest concentration among all market indices with linked products. Furthermore, the index recently added several high-profile Hong Kong hard tech newcomers like Zhipu AI and Biren Technology. The index does not include large-cap internet companies such as Alibaba, Tencent, or Meituan, resulting in a sharper focus that is more effective at capturing the Hong Kong AI hard tech market trend.
Fund Details and Risk Disclosure
As the first ETF tracking the CSI Hong Kong Connect Information Technology Composite Index, the Hong Kong Connect Information Technology ETF Huabao (159131) had a latest on-market size of 1.337 billion yuan as of June 16, 2026, making it the largest among the eight ETFs tracking this index. Its average daily turnover this year has been 565 million yuan. The underlying index, the CSI Hong Kong Connect Information Technology Composite Index (HKD), had annual historical returns from 2021 to 2025 of: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively. Past index performance is not indicative of future results.
The ETF is issued and managed by Huabao Fund. Investors should carefully read the fund's legal documents, including the Fund Contract, Prospectus, and Product Key Facts Statement, to understand its risk-return characteristics and choose a product suitable for their own risk tolerance. Past fund performance does not predict future results. Fund investments involve risks. The fund manager assesses this fund's risk level as R4 (Medium-High Risk), suitable for Aggressive (C4) and above investors. The China Securities Regulatory Commission's registration of this fund does not indicate a guarantee of its investment value, market prospects, or returns.
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