On May 7, Hong Kong's hard technology stocks continued their strong rally. The CSI Hong Kong Stock Connect Information Technology Index, often referred to as an "enhanced version of the Hang Seng Tech Index," surged 3.95%, significantly outperforming other Hong Kong tech indices such as the Hang Seng Tech Index (up 3.06%) and the HK Connect Tech Index (up 2.79%). The largest and most liquid* Hong Kong Stock Connect Information Technology ETF, Huabao (159131), rose another 4.25% after a 5% gain the previous day, marking consecutive positive sessions. Its turnover reached 722 million yuan, the second-highest since its listing, with subscriptions for 10 million units.
Over 90% of the index's constituent stocks closed higher. Deepexi Technology soared more than 63%, while five other stocks, including Kingboard Laminates and Montage Technology, rose over 10%. Hongteng Precision and NanoSemi surged more than 9%, and Huahong Semiconductor gained over 8%.
Positive sentiment was boosted by significant gains from overseas memory chip giants. Analysis from Aijian Securities pointed out that the global memory chip sector is benefiting from explosive demand for AI computing power, entering a period of high growth. Samsung Electronics reported a staggering 4782% year-on-year increase in semiconductor operating profit for Q1 2026. Prices for DRAM and NAND Flash rose more than 55% quarter-on-quarter, while revenue from its HBM business grew over threefold year-on-year. Its HBM4E product boasts a bandwidth of 4.0TB/s, with plans to capture over 50% of the global market share by 2027. Continued increases in AI infrastructure capital expenditure by tech giants like Google, Microsoft, and Meta are driving robust demand for high-end memory. The semiconductor equipment and digital chip design sectors led gains within the electronics industry, fueled by technological iteration and capacity expansion, alongside an accelerated push for domestic substitution in the memory supply chain.
Since rebounding from its low on March 31, the CSI Hong Kong Stock Connect Information Technology Composite Index, the benchmark for the Huabao ETF (159131), has accumulated a gain of 28.39%. In comparison, the Hang Seng Tech Index and the HK Connect Tech Index rose 5.95% and 8.62%, respectively, over the same period, highlighting the former's sharper rally and greater elasticity. This outperformance is attributed to the CSI HK Connect IT Index's composition, which emphasizes hard tech components like chips and semiconductors with higher weightings, while reducing exposure to internet platforms. This results in a more robust underlying asset base that better aligns with current market preferences.
Statistical period: March 31, 2026 - May 6, 2026. The annual historical returns for the HK Connect Information Technology 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.
Supporting T+0 trading! Targeting the Hong Kong stock chip supercycle – the Huabao Hong Kong Stock Connect Information Technology ETF (159131) is the first of its kind in the market, the largest, and most liquid*. Its offshore 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 hard tech companies, including SMIC with a weight of 14.21%, Xiaomi Group-W at 10.31%, Lenovo Group at 9.33%, and Huahong Semiconductor at 8.82%. The index excludes large-cap internet firms like Alibaba, Tencent, and Meituan, offering higher concentration and better positioning to capture the Hong Kong AI hard tech trend. (Data as of May 5, 2026)
Data source: CSI Index Company, Shanghai and Shenzhen Stock Exchanges. Note: "First in the market" refers to the Huabao HK Connect IT ETF being the first ETF to track the CSI Hong Kong Stock Connect Information Technology Composite Index. As of May 6, 2026, the Huabao ETF's latest on-market size was 740 million yuan, making it the largest among the seven ETFs tracking the index. Its average daily turnover year-to-date is 166 million yuan. The annual historical returns of the underlying index, the CSI HK Connect IT Composite Index (HKD), from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30%. Past index performance is not indicative of future results. Fee explanation: Subscription and redemption agents for the Huabao HK IT ETF may charge a commission of up to 0.5%. On-market trading fees are subject to the rates set by securities firms. No sales service fee is charged. *Institutional view reference source: Aijian Securities "Electronics Industry Weekly: HBM Iteration Strengthens, Samsung's AI Chip Barriers." Risk Warning: The Huabao HK Connect IT ETF and its feeder fund passively track the CSI Hong Kong Stock Connect Information Technology Composite Index. The index's base date is November 14, 2014, and it was launched on June 23, 2017. The constituent stocks mentioned are for illustrative purposes only; individual stock descriptions are not investment advice and do not represent the holdings or trading动向 of any fund managed by the manager. This product is issued and managed by Huabao Fund. Distributors are not responsible for the investment, redemption, or risk management of the product. Investors should carefully read the "Fund Contract," "Prospectus," and "Fund Product Summary" to understand the fund's risk-return characteristics and choose a product suitable for their risk tolerance. Past performance is not indicative of future results. The performance of other funds managed by the manager does not guarantee this fund's performance. Invest with caution! The fund manager assesses this fund's risk level as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Distributors (including the manager's direct sales and other distributors) assess the fund's risk according to relevant laws and regulations. Investors should pay attention to the distributor's appropriateness opinions, and the matching results shall prevail. Appropriateness opinions may differ among distributors, and a distributor's risk assessment result cannot be lower than the manager's assessment. Differences may exist between the fund's risk-return characteristics described in the contract and its risk level due to different considerations. Investors should understand the fund's risk-return profile and choose fund products cautiously based on their investment objectives, horizon, experience, and risk tolerance, bearing their own risks. CSRC registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks; invest cautiously.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
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