Today (January 5th), the HUABAO Hong Kong Stock Connect Hang Seng China (Hong Kong Listed) 30 ETF (520560), which inherently employs a "Tech + Dividend" barbell strategy, demonstrated high activity levels, with its intraday gain reaching as high as 2.72%; it is currently up 2.18%, having reclaimed its 20-day moving average during the session. Notably, this ETF has attracted a cumulative net inflow of 122 million yuan over the past 20 days, reflecting positive capital sentiment towards the Hong Kong stock market's outlook and active deployment using the barbell strategy.
Among the constituent stocks, Kuaishou-WR led the gains, rising over 10%, followed by BeiGene up nearly 6%, China Resources Land climbing more than 5%, with Ping An of China, Pop Mart, Alibaba, China Life Insurance, SMIC, Meituan, Tencent, and other stocks also posting gains.
On the news front, Kuaishou's AI platform, Ke Ling, received sequential upgrades, including the unified multimodal O1 model, 2.6 audio-visual simultaneous output, and Digital Human 2.0. Furthermore, Alibaba's mapping subsidiary, AutoNavi, has already deployed a world model and plans to launch a new product application based on it, with the model expected to be open-sourced soon.
Additionally, China's National Integrated Circuit Industry Investment Fund significantly increased its stake in SMIC's H-shares. According to Hong Kong Exchange disclosures, the fund's holding ratio in SMIC H-shares rose from 4.79% to 9.25%.
Huatai Securities believes that Hong Kong stocks closed higher last week driven by tech catalysts, and the first trading day of 2026 is expected to achieve a "positive start." Current market sentiment and liquidity conditions are more favorable than in November, increasing the probability of success when investing in Hong Kong stocks. The firm recommends continuing to allocate to the tech sector with earnings delivery expectations, which may see high growth potential in Q1 catalyzed by the liquidity environment, while also advocating for balanced allocation considering changes in driving factors and capital attributes.
Bullish on Hong Kong tech but hoping to reduce volatility? Keep an eye on the market's first - the HUABAO Hong Kong Stock Connect Hang Seng China (Hong Kong Listed) 30 ETF (520560) and its feeder funds [Feeder A (LOF) 501301; Feeder C 006355]. It inherently utilizes a "Tech + Dividend" barbell strategy, pooling 30 Hong Kong Stock Connect-listed large-cap Chinese stocks into one fund. Its top holdings include both high-beta tech stocks like Alibaba and Tencent Holdings, as well as stable high-dividend payers like China Construction Bank and Ping An of China. It supports "T+0" intraday reversal trading, offering flexibility, making it an ideal core holding tool for long-term Hong Kong market allocation.
Compared to the Hang Seng Index, which also "catches both ends" (one hand on tech, the other on dividends), the Hang Seng China (Hong Kong Listed) 30 Index is slightly more tilted towards tech growth. This might be one of the key reasons why the underlying index of the HUABAO Hong Kong Stock Connect Hang Seng China (Hong Kong Listed) 30 ETF has managed to outperform the Hang Seng Index over the past five years.
Risk Warning: The HUABAO Hong Kong Stock Connect Hang Seng China (Hong Kong Listed) 30 ETF passively tracks the Hang Seng China (Hong Kong Listed) 30 Index. The base date for this index is January 3, 2000, and it was published on January 20, 2003. The composition of the index's constituent stocks is adjusted according to its compilation rules. The index constituents mentioned are for illustrative purposes only; descriptions of individual stocks are not investment advice in any form and do not represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses this fund's risk level as R4 - Medium-High Risk, suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors are solely responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance of the fund is not indicative of its future performance. Fund investment carries risks, and caution is advised when investing in funds.
A MACD golden cross signal has formed, and these stocks are performing well!
Comments