Hong Kong's hard technology stocks returned to a correction phase during early trading on March 13. Semiconductor Manufacturing Electronics Corporation fell over 5%, SenseTime Group declined more than 4%, and Semiconductor Manufacturing International Corporation dropped nearly 1%. The market's only ETF focusing on Hong Kong information technology, the Hong Kong Information Technology ETF (159131), opened lower and experienced minor fluctuations, currently down 1.29%, marking its third consecutive day of adjustment.
Minsheng International pointed out that the foundation for a bull market in Hong Kong stocks remains intact, with the market still relatively undervalued. Firstly, there is still a gap compared to the average level of historical bull markets. Secondly, Hong Kong stocks continue to trade at low valuations relative to major global equity markets. Thirdly, A-shares still trade at a premium to H-shares, Hong Kong stocks offer attractive dividend yields, and southbound capital flows have gradually recovered. Fourthly, certain sectors remain undervalued. Industries showing significant valuation recovery compared to the early stages of the bull market currently include raw materials, energy, financials, information technology, industrials, and conglomerates. Sectors with notably low valuations include information technology, among others.
Specifically regarding the chip and semiconductor industry chain, a latest research report from Galaxy Securities indicates that against the backdrop of the external environment, supply chain security and independent controllability remain long-term trends. Equipment and materials represent the strongest investment thesis under top-level designs for domestic substitution, digital chips serve as the core carrier for computing autonomy, and advanced packaging and testing benefit from technological upgrades.
Directly targeting the super cycle in Hong Kong chip stocks! The Hong Kong Information Technology ETF (159131)—the market's first ETF focusing on the "Hong Kong chip" industry chain and eligible for T+0 trading—has an underlying index composed of "70% hardware + 30% software." It holds significant positions in Hong Kong's "semiconductor + electronics + computer software" sectors, covering 45 hard tech companies listed in Hong Kong. Among these, Semiconductor Manufacturing International Corporation has a weight of 14.07%, Xiaomi Corporation holds a 12.41% weight, and Semiconductor Manufacturing Electronics Corporation has a 7.47% weight. The ETF excludes large-cap internet enterprises like Alibaba Group, Tencent Holdings, and Meituan, offering higher concentration and greater potential to capture the AI hard tech trend in Hong Kong stocks. (Data as of March 11, 2026)
Source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges. Note: "The market's only" refers to the sole ETF tracking the CSI Hong Kong Stock Connect Information Technology Composite Index. Institutional views sourced from: Minsheng International's "When Will the Second Half of Hong Kong Stocks' 'Slow Bull' Market Begin?"; Galaxy Securities' "Semiconductor Sector Experiences Broad Correction, Core Logic Largely Unchanged." Fund fee explanation: The subscription and redemption agency for the Hong Kong Information Technology ETF may charge a commission of up to 0.5%. On-exchange trading fees are subject to the actual charges by securities firms. No sales service fee is charged. Risk warning: The Hong Kong Stock Connect Information Technology ETF passively tracks the CSI Hong Kong Stock Connect Information Technology Composite Index. The index base date is November 14, 2014, and it was launched on June 23, 2017. The index constituents mentioned in the material are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the management company. This product is issued and managed by Huabao Fund. Distributing institutions do not assume responsibility for the investment, redemption, and risk management of the product. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Summary," and other fund legal documents to understand the risk-return characteristics of the fund and select a product that matches their risk tolerance. Past performance of the fund is not indicative of its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment carries risks and must be approached cautiously! The fund manager assesses this fund's risk rating as R4 - Medium-High Risk, suitable for aggressive (C4) and above investors. Sales institutions (including the fund manager's direct sales channels and other sales institutions) evaluate the fund's risk according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by sales institutions and base their decisions on the matching results. Appropriateness opinions from different sales institutions may not necessarily be consistent, and the risk rating results for the fund product issued by fund sales institutions shall not be lower than the risk rating result determined by the fund manager. There may be differences between the fund's risk-return characteristics described in the fund contract and its risk rating due to different consideration factors. Investors should understand the fund's risk-return profile and carefully select fund products based on their own investment objectives, time horizon, investment experience, and risk tolerance, assuming risks independently. The China Securities Regulatory Commission's registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks; investment requires caution.
MACD golden cross signals have formed, and these stocks are performing well!
