Hong Kong's three major indices experienced narrow-range fluctuations throughout the trading session. ETFs tracking US equities posted moderate increases, while satellite and aerospace-focused ETFs saw a broad pullback. At the close, the Hang Seng Index was essentially flat, finishing at 26,389.04 points, with a total turnover of HK$3.067.02 billion. The Hang Seng Tech Index declined by 0.35%, closing at 5,076.2 points.
Among Hong Kong equity-focused ETFs, the top three performers by volume were as follows: Tracker Fund (02800) rose 0.15% to HK$26.56; CSOP Hang Seng Tech Index ETF (03033) fell 0.56% to HK$4.96; CSOP 2x Long SK Hynix ETF (07709) declined 0.57% to HK$105.
**Sector Performance**
1. **US Tech Giants Continue Momentum, Related ETFs Post Modest Gains** The rally in leading US technology stocks persisted, driving moderate gains in related ETFs. By the close, among ETFs tracking US markets, E Fund MSCI USA 50 ETF (513850) advanced 1.57% to RMB 1.747, while China Universal MSCI USA 50 ETF (159577) gained 1.16% to RMB 1.568. Both funds track the same index—the MSCI USA 50 Index, which comprises the 50 largest US companies by market capitalization. Their portfolios and sector allocations are identical, featuring top holdings such as Nvidia (NVDA.US), Apple (AAPL.US), and Microsoft (MSFT.US). Media reports indicate that during a recent US delegation visit to China led by former President Trump, accompanying executives included leaders from over a dozen major US tech firms, such as Apple's CEO Tim Cook, Nvidia's CEO Jensen Huang, and Tesla's CEO Elon Musk. This development provided a boost, with the Nasdaq index rising 1.05% overnight, and stocks like Nvidia and Google closing at new all-time highs. Separately, it is noteworthy that, according to Xinhua News Agency, the US Senate confirmed Kevin Warsh as the next Chair of the Federal Reserve with a 54-45 vote on May 13th, succeeding Jerome Powell for a four-year term.
2. **Satellite and Aerospace ETFs Experience Broad-Based Pullback, Leading Decliners** ETFs focused on satellite and aerospace sectors retreated across the board, with several products among the day's biggest losers. Specifically, at the close, GF Satellite ETF (512630) dropped 5.92% to RMB 1.541; Fullgoal Satellite ETF (563230) fell 5.75% to RMB 1.542; China Merchants Satellite ETF (159218) declined 5.71% to RMB 1.882; Huatai-PineBridge Aerospace ETF (563380) decreased 4.78% to RMB 1.195; and ChinaAMC Aerospace ETF (159227) shed 4.65% to RMB 1.312. On May 14th, the improved version of the Zhuque-2 Yao-5 carrier rocket was successfully launched from the Dongfeng Commercial Aerospace Innovation Test Zone. The rocket performed normally throughout its flight, with its second stage entering the predetermined orbit, marking a complete success for the mission. Great Wall Securities noted that the commercial aerospace sector has recently seen a concentration of industry catalysts, with significant launch missions and policy milestones approaching, prompting early positioning by capital. Following previous catalysts, the sector experienced a strong rally, and this time it may initiate a new upward trend with substantial long-term growth potential.
**Institutional Views**
CITIC Securities analysis suggests that late May could represent a阶段性 peak for market sentiment and risk appetite within the year. The firm pointed out that since April 9th, domestic broad-based ETFs have seen continuous net redemptions, with 18 consecutive trading days of outflows as of May 7th, amounting to approximately RMB 262.5 billion in cumulative net redemptions. Particularly after the Shanghai Composite Index stabilized above 4,100 points, redemption volumes from broad-based ETFs have been increasing. Considering the current macro environment临近 significant event windows and the accumulated赚钱效应 in the Shanghai Composite since late March, the recent pattern of profit-taking via ETF redemptions may indicate sizable配置型 funds are reducing their positions.
Eugene Leung, Head of Asia Pacific Equity Research at UBS Global Research, stated that although the Hong Kong market has recovered from the避险情绪 triggered by recent geopolitical tensions, returning to its pre-conflict operational state, the inflationary pass-through effects of high oil prices on downstream industries have not fully materialized and warrant close attention in the coming months.
**ETF Developments**
On May 14th, three ETFs debuted on the exchange: 1. GF Securities ETF (159016) listed for the first time, closing down 1.69% at RMB 0.988 with a turnover of RMB 1.17 billion. The fund tracks the CSI Securities Company 30 Index, focusing on leading brokerage firms. 2. Tianhong Hong Kong Auto ETF (159028) made its debut, ending the day down 1.71% at RMB 0.976 with a turnover of RMB 322.406 million. It tracks the Hang Seng Stock Connect Hong Kong Auto Theme Index, covering Hong Kong-listed整车 manufacturers, auto parts, and the new energy vehicle产业链. 3. E Fund N-Power ETF (560930) commenced trading, closing down 1.88% at RMB 0.993 with a turnover of RMB 1.22 billion. The fund tracks the CSI All Share Power Utilities Index, providing exposure to the utilities sector, including power generation and grid operations.
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