This afternoon on June 18th, Hong Kong's hard tech stocks staged a powerful rally, turning sharply higher. Knowledge Atlas and Tian Shu Zhi Xin soared over 13%, while Hua Hong Grace surged more than 10%. The largest and most liquid* HK Connect Information Technology ETF, Huabao (159131), gained momentum in the afternoon, climbing 0.72% with its intraday price approaching its all-time high since listing.
Galaxy Securities pointed out that the global semiconductor sector is expected to be in a phase of high-level volatility in June, recommending continued focus on segments within the industrial chain experiencing growth increments and strengthening momentum. Areas to watch may include memory, semiconductor equipment and materials, power semiconductors, and domestic computing power.
Datong Securities believes that Nvidia's new-generation Vera Rubin platform has entered an intensive procurement phase. Its architectural innovations have led to a comprehensive upgrade in requirements for PCB layer count, materials, and processes, driving a significant increase in PCB value per server. Judging from TSMC's advanced process capacity scheduling and supply chain inventory preparation, the order visibility for AI computing hardware has extended to 2027, with both short-term and medium-term demand showing a consistently stronger-than-expected trend.
Against this backdrop, demand for AI servers and high-speed switches is experiencing explosive growth, ushering in a prosperous cycle for the PCB sector characterized by both volume and price increases. Currently, the capacity utilization rates of several core domestic AI PCB suppliers have reached historical peaks, with full order books and production operating at full capacity and sales. They are actively expanding capacity through capital expenditures to meet urgent downstream demand. The certainty of high earnings growth is strong, and positive profit elasticity is expected to continue being released. In summary, there is sustained optimism regarding the earnings explosion potential of the PCB sector driven by the resonance of price and volume increases. It is also advisable to monitor the allocation opportunities in core computing hardware and semiconductor equipment.
Looking at its performance over the past six months, the underlying index of the HK Connect Information Technology ETF Huabao (159131), which focuses on Hong Kong's hard tech—the CSI HK Connect Information Technology Composite Index—has accumulated gains exceeding 30%. This significantly outperforms the Hang Seng Tech Index by 45%, the HK Connect Tech Index by 41%, and the HK Connect Internet Index by over 58%, demonstrating notably superior sharpness and elasticity.
Statistical period: November 17, 2025, to June 17, 2026. The annual historical returns for the HK Connect Information C Index from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%, respectively. Past index performance is not indicative of future results.
A rare "pure-blood" hard tech play in Hong Kong! Supports T+0 trading! The first-of-its-kind, largest, and most liquid HK Connect Information Technology ETF in the market, Huabao (159131), with its feeder fund code 026755. Its underlying index is composed of "80% hardware + 20% software," heavily weighted towards Hong Kong's "semiconductors + electronics + computer software" sectors. It covers 60 Hong Kong-listed hard tech companies. The combined weight of the two wafer foundry giants, SMIC and Hua Hong Semiconductor, exceeds 21%. The weight of domestic AI PC leader Lenovo Group is 15.89%. The combined weight of PCB leaders Kingboard Holdings and Kingboard Laminates exceeds 10%. These three holdings represent the highest concentration among all market indices with linked products. Unfazed by market rotation.
Furthermore, the index recently included several new Hong Kong-listed hard tech heavyweights such as Knowledge Atlas and Biren Technology. 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 trend.
Data source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges.
Note: "First in the market" refers to the HK Connect Information Technology ETF Huabao being the first ETF to track the CSI HK Connect Information Technology Composite Index. As of June 16, 2026, the latest on-exchange size of the HK Connect Information Technology ETF Huabao was 1.337 billion yuan, making it the largest among the 8 ETFs currently tracking the CSI HK Connect Information Technology Composite Index. The ETF's average daily turnover year-to-date is 565 million yuan. The annual historical returns of the underlying index, the CSI HK 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 is not indicative of future results.
Fund Fee Explanation: Subscription and redemption agents for the HK 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 for institutional views: Galaxy Securities report "Sector in High-Level Volatility, Focus on Strengthening Momentum Directions"; Datong Securities report "AI Computing Demand Drives PCB Volume and Price Increases, Hardware Momentum Continues to Improve as a Combined Result."
Risk Warning: The HK Connect Information Technology ETF Huabao and its feeder fund passively track the CSI HK Connect Information Technology Composite Index. The base date for this index is November 14, 2014, and it was released on June 23, 2017. The index constituents mentioned in the material are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the fund manager. This product is issued and managed by Huabao Fund. Distributing institutions do not bear the investment or redemption liability for the product. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Key Facts Statement," 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 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 risks! The fund manager assesses this fund's risk等级 as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Distributing institutions (including the fund manager's直销机构 and other distributing institutions) evaluate this fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by distributing institutions and base their decisions on the matching results. Appropriateness opinions from different distributing institutions may not necessarily be consistent, and the fund risk等级 evaluation results issued by fund distributing institutions shall not be lower than the risk等级 evaluation result made by the fund manager. There may be differences between the fund contract's description of the fund's risk-return characteristics and the fund's risk等级 due to different considerations. Investors should understand the fund's risk-return situation,结合自身投资目的, investment horizon, experience, and risk tolerance to谨慎选择基金产品 and bear the risks themselves. The CSRC'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.
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