To The Moon

According to Zhitong Finance APP, Southern Two Times Short Hang Seng Tech (07552) rose nearly 3% in late trading, up 2.44% as of press time to HK$2.266, with a turnover of HK$337 million.

On the news front, on October 21, the Hong Kong Hang Seng Tech Index once fell nearly 1.5%, dropping below the 4,000-point mark to a new low since October 2024.

Wen Tianna, Chief Executive Officer of Boda Capital International, said that the current index structure is overweight in internet and e-commerce, with AI hardware accounting for less than 15%, and that the Hang Seng Tech Index has missed the global AI main theme over the past year. At present, major internet companies are increasing their AI investment, which will suppress cash flow and profit margins in the short term, and the market is worried that the return cycle will be prolonged.

Shenwan Hongyuan issued a research report stating that the recent significant divergence between the Hang Seng Tech Index and U.S. software stocks may be related to valuation constraints brought by rising U.S. Treasury yields and differences in earnings expectations between the two technology sectors. In the future, if the numerator side dominates, U.S. software stocks may converge toward the Hang Seng Tech Index; if the denominator side dominates, as interest rate constraints ease, the Hang Seng Tech Index is expected to move closer to U.S. software stocks.