The Hong Kong 'hard tech' sector experienced a pullback on June 10th following strong gains in the previous session. The largest and most liquid* ETF in this category, the HuaBao Hong Kong Stock Connect Information Technology ETF (159131), weakened during trading, currently down 4.07%, with its intraday premium widening. Its real-time turnover exceeded 800 million yuan.
A research report suggests the Hong Kong market is currently in a balancing period between external disturbances and its own recovery, with the overall risk-reward ratio remaining reasonable. Short-term market movements are primarily driven by overseas macroeconomic risks. The report advises monitoring data and events over the next two weeks, with a focus on Federal Reserve communications and the progress of AI diffusion in the US stock market.
Performance Overview
Over the past six months, the underlying index of the HuaBao Hong Kong Stock Connect Information Technology ETF (159131), the CSI Hong Kong Stock Connect Information Technology Composite Index, has gained over 19%. This performance has outpaced the Hang Seng Tech Index by 35%, the Hong Kong Stock Connect Technology Index by 33%, and the Hong Kong Stock Connect Internet Index by over 47%, demonstrating significant sharpness and resilience.
Statistical period: November 9, 2025, to June 9, 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 is not indicative of future results.
ETF Product Details
This ETF supports T+0 trading. As the first and largest ETF of its kind, it focuses on Hong Kong's hard tech sector. Its constituent index is structured as "80% hardware + 20% software," heavily weighted towards Hong Kong-listed companies in semiconductors, electronics, and computer software. It covers 52 hard tech companies.
Notably, the combined weight of the two major foundry giants, SMIC and Hua Hong Semiconductor, exceeds 21%, the highest among all indices with linked products in the market. The domestic AI PC leader Lenovo Group holds a weight of 18.20%, also the highest representation in any market index. The combined weight of PCB leaders Kingboard Holdings and Kingboard Laminates exceeds 8%, again the highest index concentration in the market.
The index excludes large-cap internet companies like Alibaba, Tencent, and Meituan, resulting in higher focus and making it easier to capture trends in Hong Kong's AI and hard tech sectors.
Data source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges.
Note: "First in the market" refers to this ETF being the first to track the CSI Hong Kong Stock Connect Information Technology Composite Index. As of May 29, 2026, the ETF's latest on-exchange size was 13.46 billion yuan, making it the largest among the eight ETFs tracking this index. Its average daily turnover year-to-date is 372 million 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 is not indicative of future results.
Fee Information and Risk Disclosure
Subscription and redemption agents for the HuaBao Hong Kong Stock Connect Information Technology ETF may charge a commission of up to 0.5%. On-exchange trading fees are subject to the rates charged by securities firms. No sales service fee is charged.
The HuaBao Hong Kong Stock Connect Information Technology ETF and its feeder fund passively track the CSI Hong Kong Stock Connect Information Technology Composite Index. This index has a base date of November 14, 2014, and was published on June 23, 2017. The index constituents mentioned in this material are for illustrative purposes only. Descriptions of individual stocks are not investment advice of any form and do not represent the holdings or trading intentions of any fund managed by the fund manager. This product is issued and managed by HuaBao Fund. Distributing institutions do not bear investment or redemption responsibilities for the product.
Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement, 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 does not predict future results. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Fund investment carries risks. The fund manager assesses this fund's risk level as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. Distributing institutions (including the fund manager's direct sales channels and other distributors) evaluate the fund's risk according to relevant laws and regulations. Investors should pay attention to the suitability opinions provided by distributors and base their decisions on the matching results. Suitability opinions from different distributors may not be consistent. A distributor's risk rating assessment result for a fund product shall not be lower than the risk rating assessment result made by the fund manager. There may be differences between the fund's risk-return characteristics as described in the fund contract and its risk level due to different assessment factors. Investors should understand the fund's risk-return profile and make their own investment decisions, bearing the associated risks, based on their investment objectives, horizon, experience, and risk tolerance. 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 involve risks; investment requires caution.
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