This afternoon on March 16, Hong Kong stocks experienced a collective upswing. The Hang Seng Stock Connect Information Technology C Index, representing Hong Kong's core technology sector, climbed 1.85%. Shares of GigaDevice soared more than 11%, while Hua Hong Semiconductor advanced over 6%. Montage Technology and Foxconn Interconnect Technology both saw gains exceeding 5%. The market's sole ETF tracking the Hong Kong information technology sector, the Huabao Fund港股信息技术ETF (159131), traded with significant volatility near the break-even line during the morning session before sharply rising in the afternoon, currently up 3.01%, potentially ending a three-day losing streak.
Market sentiment was buoyed by public comments from Wall Street "big short" Michael Burry on social media, suggesting the Hang Seng Tech Index is significantly undervalued. Furthermore, Hong Kong media reported financial industry sources noting recent inquiries from Middle Eastern clients regarding investments in the Hong Kong stock market and establishing family offices in Hong Kong. Christopher Hui, Secretary for Financial Services and the Treasury, commented that the Middle East situation presents both risks and opportunities for Hong Kong, highlighting the city's comparative advantages in safety, stability, and predictability.
China Minsheng Banking Corp. International noted that the foundation for a bull market in Hong Kong stocks remains intact, supported by relative undervaluation. Key reasons include: the market's distance from historical bull market averages; Hong Kong stocks trading at lower valuations compared to major global markets; the continued premium of A-shares over H-shares, coupled with advantageous dividend yields in Hong Kong and a gradual recovery in southbound capital inflows; and specific sectors like information technology remaining undervalued.
Focusing on the港股信息技术ETF (159131), the first ETF targeting the "Hong Kong chip" supply chain and eligible for T+0 trading, its underlying index is structured as "70% hardware + 30% software." It holds significant positions in Hong Kong-listed companies from the semiconductor, electronics, and computer software sectors, covering 45 core technology firms. SMIC has a weight of 14.07%, Xiaomi Corporation holds 12.41%, and Hua Hong Semiconductor accounts for 7.47%. The fund excludes large-cap internet giants like Alibaba, Tencent, and Meituan, offering sharper focus and better positioning to capture trends in Hong Kong's AI and hardware technology sectors. (Data as of March 11, 2026)
Source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges. Note: "Sole ETF" refers to being the only ETF tracking the CSI Hong Kong Stock Connect Information Technology Composite Index. Institutional perspectives sourced from: China Minsheng Banking Corp. International and Galaxy Securities. Fee Information: Agencies handling subscriptions and redemptions for the港股信息技术ETF may charge a commission of up to 0.5%. On-exchange trading fees are subject to securities firms' actual charges. No sales service fee is applied.
Risk Disclosure: The港股信息技术ETF passively tracks the CSI Hong Kong Stock Connect Information Technology Composite Index, with a base date of November 14, 2014, and launch date of June 23, 2017. Constituent stocks listed are for illustrative purposes only; descriptions are not investment advice and do not represent the holdings or trading activities of the fund manager. This product is issued and managed by Huabao Fund. Distributors are not responsible for the product's investment performance, redemption, or risk management. Investors should carefully read the Fund Contract, Prospectus, and Key Fund Information Document to understand the fund's risk-return profile and choose products matching their risk tolerance. Past performance does not indicate future results. Performance of other funds managed by the manager does not guarantee this fund's performance. Mutual fund investments involve risks. The fund manager assesses this fund's risk level as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Distributors provide risk assessments based on relevant laws; investors should follow the suitability matching results provided by their distributor. Fund contracts and distributor assessments of risk levels may differ due to varying factors. Investors should understand the fund's risks and returns, make selections based on their investment objectives, horizon, experience, and risk tolerance, and bear investment risks themselves. CSRC registration does not guarantee the fund's value, prospects, or returns. Investments carry risks.
