In early trading today (June 25th), the Hong Kong stock chip sector weakened. The largest and most liquid* Hong Kong Stock Connect Information Technology ETF, Huabao (159131), initially surged over 2% but has now reversed to a decline of 1.34%. Capital rapidly poured in, with real-time subscriptions reaching 1.79 billion units and net subscriptions hitting 1.49 billion units. This follows two consecutive trading days of heavy buying, with combined inflows exceeding 2.58 billion yuan.
Regarding heavyweight constituents, Kingboard Laminates Holdings Ltd rose over 4%, Hua Hong Semiconductor Ltd gained over 3% to hit a new listing high, Semiconductor Manufacturing International Corporation advanced nearly 2%, and Lenovo Group Ltd edged up 0.61%.
Market Analysis and Outlook
Dongxing Securities analysis suggests that the global launch of AI large models and agent applications in 2026, coupled with sustained high growth in tech giants' AI capital expenditures, is directly driving demand and capital expenditure intensity for upstream computing hardware infrastructure. Earnings in related segments are entering a period of high growth realization. Starting from Q1 2026, the global semiconductor and hardware supply chain is experiencing a "structural price increase wave": supply and demand for core segments related to AI computing power, such as wafer foundry, advanced packaging and testing, high-end chips, high-end PCBs, and passive components, are tightening, pushing prices upward. Simultaneously, the rigid supply of upstream raw materials further strengthens the logic of cost pass-through.
Performance and Index Highlights
Over the past six months, the underlying index of the Hong Kong Stock Connect Information Technology ETF Huabao (159131), which focuses on Hong Kong-listed hard tech—the CSI Hong Kong Stock Connect Information Technology Composite Index—has accumulated a gain of 29.8%. This outperformed the Hang Seng TECH Index by 50%, the Hong Kong Stock Connect Technology Index by 44%, and the Hong Kong Stock Connect Internet Index by over 64%, demonstrating significantly superior sharpness and elasticity.
Statistical period: December 24, 2025, to June 24, 2026. The annual historical returns for the Hong Kong Stock Connect Information C Index from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%, respectively. Past index performance does not indicate future results.
ETF Features and Composition
A rare "pure-blood" hard tech play in the Hong Kong market! Supports T+0 trading! The first-of-its-kind, largest, and most liquid Hong Kong Stock Connect Information Technology ETF, Huabao (159131), with its feeder fund code 026755. Its underlying index is composed of "80% hardware + 20% software," heavily weighted towards Hong Kong-listed "semiconductors + electronics + computer software." It covers 60 Hong Kong-listed hard tech companies. Among them, the combined weight of the two wafer foundry giants, Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor Ltd, exceeds 24%. The domestic AI PC leader, Lenovo Group Ltd, has a weight exceeding 11%. The combined weight of the PCB leaders, Kingboard Holdings Ltd and Kingboard Laminates Holdings Ltd, exceeds 11%. These three groups represent the highest concentration in indices with linked products across the entire market. Furthermore, the index recently included several new Hong Kong-listed hard tech giants like Zhipu AI and Biren Technology, each with market caps in the hundreds of billions. The constituent stocks do not include large-cap internet companies like Alibaba, Tencent, or Meituan, resulting in higher sharpness and making it easier to capture the Hong Kong AI hard tech market trend.
Data source: CSI Index Company, Shanghai and Shenzhen Stock Exchanges.
Note: "First-of-its-kind" refers to the Hong Kong Stock Connect Information Technology ETF Huabao being the first ETF in the market to track the CSI Hong Kong Stock Connect Information Technology Composite Index. As of June 16, 2026, the latest on-exchange size of the Hong Kong Stock Connect Information Technology ETF Huabao was 13.37 billion yuan, making it the largest among the 8 ETFs currently tracking the CSI Hong Kong Stock Connect Information Technology Composite Index. The average daily turnover for the Hong Kong Stock Connect Information Technology ETF Huabao year-to-date is 5.65 billion yuan. The annual historical returns for the underlying index, the CSI Hong Kong Stock Connect Information Technology Composite Index (HKD), from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%, respectively. Past index performance does not indicate future results.
Fee Structure
Subscription and redemption agents for the Hong Kong Stock Connect Information Technology ETF Huabao may charge a commission of up to 0.5%. On-exchange trading fees are subject to the actual charges by securities firms. No sales service fee is charged.
Reference institutional viewpoint source: Galaxy Securities, "The Lowland Puzzle, Long Slope Accumulating Strength – 2026 Mid-Year Hong Kong Stock Investment Outlook."
Risk Disclosures
The Hong Kong Stock Connect Information Technology ETF Huabao and its feeder fund passively track the CSI Hong Kong Stock Connect Information Technology Composite Index. The base date for this index is November 14, 2014, and its release date is June 23, 2017. The index constituents mentioned in the materials are for display purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings information or trading trends of any fund under the management company. This product is issued and managed by Huabao Fund. Distribution agents do not bear responsibility for the investment or redemption of the product. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Summary," and other fund legal documents to understand the fund's risk-return characteristics and choose a product suitable for their own risk tolerance. Past fund performance does not predict future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment involves risks! The fund manager assesses this fund's risk level as R4 – Medium to High Risk, suitable for aggressive (C4) and above investors. Distribution agencies (including the fund manager's direct sales channels and other sales agencies) evaluate the fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by sales agencies and base their decisions on the matching results. Opinions on appropriateness from various sales agencies may not necessarily be consistent, and the fund product risk rating results issued by fund sales agencies shall not be lower than the risk rating results made by the fund manager. There may be differences between the fund's risk-return characteristics described in the fund contract and the fund's risk rating due to different considerations. Investors should understand the fund's risk-return situation, consider their own investment objectives, horizon, experience, and risk tolerance, choose fund products prudently, and bear the risks themselves. The China Securities Regulatory Commission's registration of this fund does not indicate a substantive judgment or guarantee of its 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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