On the afternoon of the 26th, both A-shares and Hong Kong stocks experienced a collective decline, with Hong Kong's hard tech stocks falling sharply during the session. The market's only Hong Kong Stock Connect Information Technology ETF (159131) initially rose nearly 1% in the morning before fluctuating downward and accelerating its decline in the afternoon, currently down 1.61%. Both SMIC and Hua Hong Semiconductor dropped over 6%.
The market movement follows Google's announcement that its new TurboQuant technology can significantly reduce memory usage for large language models and vector search engines. This news likely triggered a sharp decline in shares of computer memory and storage product manufacturers. However, industry insiders believe the impact may be a short-term disruption rather than an existential threat. Bulls optimistic about the current strong rally in global memory chips argue that efficiency improvements could actually increase rather than decrease demand.
Galaxy Securities pointed out that computing power demand and capital investment are rising together, with the industry entering a high-growth expansion phase. The rapid transmission of computing power demand across various segments of the industrial chain has led to significant performance growth for chip manufacturers, foundries, and server companies. Cloud providers raising computing power prices reflect tightening supply and demand conditions. The AI industry has entered an intensive expansion cycle characterized by "demand explosion - price transmission - capital reinforcement."
According to a GF Securities research report, market expectations for 2026 interest rate cuts have been adjusted to zero due to US-Iran conflicts, though this assessment is based on short-term uncontrollable geopolitical factors. Once these disturbances are digested, previously suppressed valuations may have room for recovery, potentially creating phased bottom-fishing opportunities.
Targeting Hong Kong's chip super cycle, the Hong Kong Stock Connect Information Technology ETF Huabao (159131) represents the first ETF focusing specifically on Hong Kong's chip industry chain with T+0 trading capability. Its underlying index comprises "70% hardware + 30% software," heavily weighting Hong Kong stocks in semiconductors, electronics, and computer software. The ETF covers 45 Hong Kong-listed hard tech companies, with SMIC accounting for 14.07% of the weighting, Xiaomi Group-W at 12.41%, and Hua Hong Semiconductor at 7.47%. The portfolio excludes large-cap internet companies like Alibaba, Tencent, and Meituan, offering sharper focus and better capture of Hong Kong's AI hard tech trends. (Data as of March 11, 2026)
Source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges.
Note: "The market's only" refers to the Hong Kong Stock Connect Information Technology ETF Huabao (159131) being the sole currently listed and tradable ETF tracking the CSI Hong Kong Stock Connect Information Technology Composite Index.
Fund fee explanation: Subscription and redemption agents for the Hong Kong Information Technology ETF may charge commissions up to 0.5%. On-exchange trading fees are subject to securities companies' actual charges. No sales service fees are applied.
*Institutional views sourced from: GF Securities "Morning Express | When Will Hong Kong Stocks Exhaust Negative Factors?"; Galaxy Securities "CGS-NDI Tracking: GTC 2026 Highlights: AI Shifts from Chip Competition to System Competition - Digital Economy Weekly Report (Issue 7, 2026)"; Huatai Securities "Hong Kong Stock Strategy: Recommend Maintaining Low Positions in Hong Kong Stocks"
Risk disclosure: The Hong Kong Information Technology ETF and its feeder fund passively track the CSI Hong Kong Stock Connect Information Technology Composite Index, which has a base date of November 14, 2014, and was published on June 23, 2017. Index constituents shown in materials are for demonstration only, with individual stock descriptions not constituting investment advice of any form nor representing any fund's holdings or trading动向 under the management company. This product is issued and managed by Huabao Fund, with distribution institutions not assuming investment, redemption, or risk management responsibilities for the product. Investors should carefully read the "Fund Contract," "Prospectus," and "Fund Product Summary" to understand the fund's risk-return characteristics and select products matching their risk tolerance. Past performance does not predict future results, and performance of other funds managed by the management company does not guarantee this fund's performance. Fund investment carries risks. The fund manager assesses this fund's risk level as R4-medium high risk, suitable for aggressive (C4) and above investors. Sales 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 promptly follow sales institutions' appropriateness opinions and base decisions on matching results. Appropriateness opinions may vary across sales institutions, though their risk rating results cannot be lower than the fund manager's assessment. Differences exist between the fund contract's risk-return characteristics and the risk rating due to different consideration factors. Investors should understand the fund's risk-return profile and carefully select fund products based on investment objectives, horizon, experience, and risk tolerance while assuming risks independently. CSRC registration of this fund does not indicate substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks; investment requires caution.
MACD golden cross signals have formed, with several stocks showing good upward momentum.
