To The Moon

The E Fund HKEX Tech 100 ETF (03456) rose close to 4% during afternoon trading. As of the time of writing, it was up 3.75% to HK$8.16, with a turnover of HK$3.4922 million.

On the news front, since July, the risk of excessive trading concentration in the AI hardware sector has been increasing, prompting institutions to rebalance their portfolios towards undervalued assets. The Hang Seng Tech Index, which is at a low valuation level and supported by strong cash flows and significant share buybacks, is attracting capital inflows.

China Merchants Securities International noted that looking ahead to July, the valuation of the Hang Seng Tech Index is already at an attractive level, suggesting opportunities for gradual accumulation on dips. However, a sustained valuation recovery may depend on sequential improvements in fundamental performance.

Public information shows that the E Fund HKEX Tech 100 ETF (03456) commenced trading on the Hong Kong Exchange on June 26. The underlying index for this ETF is the HKEX Tech 100 Index, the first Hong Kong stock index launched by the Hong Kong Exchange.

In terms of its constituent stocks, the index selects 100 eligible Hong Kong Stock Connect-listed companies with strong technology attributes. Beyond mega-cap leaders like Tencent and Xiaomi, industry leaders in specialized fields such as Contemporary Amperex Technology Co. Limited (CATL) and BeiGene are also included. This composition helps address coverage gaps in the Hang Seng Tech Index regarding sectors representing new quality productive forces, such as computing power, semiconductors, robotics, and biotechnology.