The full text of the highly anticipated "15th Five-Year Plan" proposal was released on October 28, emphasizing extraordinary measures to achieve decisive breakthroughs in key technologies across critical sectors such as integrated circuits, industrial machinery, high-end instruments, foundational software, advanced materials, and biomanufacturing. It also identifies quantum technology, biomanufacturing, hydrogen and nuclear fusion energy, brain-computer interfaces, embodied AI, and 6G mobile communication as new economic growth drivers. The plan calls for a comprehensive "AI+" initiative to dominate industrial applications and empower all sectors. Against this backdrop, the first-ever Hong Kong-listed Information Technology ETF (159131) has garnered significant market attention due to its focus on "semiconductors + electronics + computer software" in Hong Kong stocks and their valuation advantage over A-shares.
Leading ETF provider Huabao Fund launched the pioneering Hong Kong Information Technology ETF (159131) from October 27 to 31. This ETF tracks the CSI Hong Kong Stock Connect Information Technology Composite Index ("HK Connect Info-C"), comprising 41 Hong Kong-listed hard-tech companies, offering investors a premier tool to capitalize on "China's hard-tech assets" in Hong Kong markets.
Cutting-edge hard-tech sectors, particularly chip manufacturing, have become a focal point of global competition. The ETF's benchmark index (930967.CSI) selects IT-related constituents from the CSI Hong Kong Stock Connect Composite Index, with a composition of "70% hardware + 30% software." Key sectors include consumer electronics (41.53%), semiconductors (29.79%), and computer software (27.79%). Unlike typical Hong Kong tech indices, this index excludes large-cap internet firms, enhancing its focus on AI-driven hard-tech opportunities.
At the 2025 Greater Bay Area Semiconductor Expo on October 15, Shenzhen NewKailai showcased 16 products across process and measurement equipment lines. Its subsidiary Qiyunfang introduced China's first fully independent EDA design software, while another unit unveiled the world's fastest 90GHz real-time oscilloscope—marking breakthroughs in high-end electronic measurement tools. Other innovations included semiconductor wafers, etching components, and 5G IoT chips, demonstrating China's accelerating chip industry localization. At the 2025 Yunqi Conference, Alibaba pledged additional investments beyond its planned ¥380 billion for cloud and AI infrastructure, projecting a tenfold increase in data center capacity by 2032—boosting demand for domestic chips.
As of September 2025, the HK Connect Info-C Index's top holdings include SMIC (19.41%), Xiaomi (10.28%), and Hua Hong Semiconductor (5.11%), with its top five constituents representing 51% weighting. The index has surged 110.93% from December 2022 to September 2025, outperforming peers like the Hang Seng Tech Index. With a P/E of 42.68x (51.92 percentile over three years), it trades below global tech indices. Notably, dual-listed hard-tech firms like SMIC show significant H-share discounts versus A-shares, creating potential growth opportunities for ETF investors.
Risk Disclosure: Past performance does not indicate future results. Other funds managed by the same manager do not guarantee this ETF's performance. Investments carry risks—proceed with caution.
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