On April 1, AH shares staged a significant rebound, with AI computing power remaining a key focus of the market. Notably, the semiconductor sector in Hong Kong experienced a particularly strong recovery. The market's first and only listed Hong Kong Stock Connect information technology ETF focusing on the "Hong Kong chip" industry chain, Huabao (159131), opened sharply higher in the morning session and is currently up more than 3%, with trading volume also expanding rapidly.
Recently, SMIC, the largest constituent stock of the Huabao (159131) ETF, disclosed its 2025 annual report. The company reported annual revenue of 67.323 billion yuan, a year-on-year increase of 16.49%, and net profit attributable to shareholders of 5.041 billion yuan, up 36.3% year-on-year. The company's operational performance showed steady improvement, maintaining its position as the world's second-largest pure-play wafer foundry.
Analysis from Galaxy Securities suggests that the resilience of Hong Kong stocks stems from their status as a valuation洼地, with low valuations attracting risk-averse capital seeking certainty. The rapid transmission of computing power demand to various segments of the industry chain has led to significant earnings growth for chip manufacturers, foundries, and server providers. Price increases by cloud service providers reflect tightening supply and demand conditions. The AI industry has entered a high-intensity expansion cycle characterized by "explosive demand—price transmission—increased capital investment."
The underlying index of the Huabao (159131) ETF is composed of "70% hardware + 30% software," heavily weighted toward Hong Kong-listed companies in "semiconductors + electronics + computer software." It covers 50 Hong Kong-listed hard technology companies. SMIC holds a weight of 13% in the index, Xiaomi Group-W has a weight of 12.98%, and Hua Hong Semiconductor has a weight of 7.38%. The ETF excludes large-cap internet companies such as Alibaba, Tencent, and Meituan, giving it a sharper focus and making it more effective at capturing trends in Hong Kong's AI hard technology sector.
