On April 10, the AH-share markets strengthened again after a brief adjustment in the previous session, with Hong Kong's hard tech sector demonstrating notable momentum. The largest and most liquid* Hong Kong Stock Connect Information Technology ETF Hua Bao (159131) opened sharply higher, rising 1.71% intraday and displaying a V-shaped reversal pattern on its daily chart. Capital inflows accelerated during the session, with real-time net subscriptions reaching 17 million units.

CITIC Securities' April Hong Kong market strategy noted that geopolitical tensions since late February had amplified downward pressure on Hong Kong's fundamentals. However, as the earnings season nears its end, expectations for corporate performance have been largely adjusted. With signs of easing tensions, Hong Kong stocks are expected to attract renewed capital inflows from both domestic and international investors. Combined with potential policy catalysts during the "15th Five-Year Plan" period, the brokerage anticipates a valuation expansion phase for Hong Kong markets in April-May. Investors may focus on internet and semiconductor sectors within the technology space where earnings expectations have already been sufficiently revised.

Supporting T+0 trading! Targeting the super cycle in Hong Kong chip stocks—the largest and first ETF tracking the "Hong Kong chip" industry chain, the Hong Kong Stock Connect Information Technology ETF Hua Bao (159131) has a feeder fund code 026755. Its underlying index comprises "70% hardware + 30% software," heavily weighted toward Hong Kong-listed semiconductors, electronics, and computer software. The ETF covers 50 hard tech companies, including Xiaomi Group-W with a 13.25% weighting, SMIC at 12.54%, Lenovo Group at 9.04%, and Hua Hong Semiconductor at 7.09%. It excludes large-cap internet companies like Alibaba, Tencent, and Meituan, offering sharper focus and better alignment with Hong Kong's AI hardware trends. (Data as of March 31, 2026)

Data source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges. Note: "First in the market" refers to the Hong Kong Stock Connect Information Technology ETF Hua Bao (159131) being the first ETF tracking the CSI Hong Kong Stock Connect Information Technology Composite Index. As of April 7, 2026, the fund's latest on-market size was 471 million yuan, making it the largest among the three listed ETFs tracking the index. Its average daily turnover since the beginning of the year has been 120 million yuan.

Fund fee explanation: Subscription and redemption agents for the Hong Kong Information Technology ETF may charge commissions up to 0.5%. On-market trading fees are subject to securities firms' actual charges. No sales service fees are applied. *Institutional view source: Bank of China Securities, "Nvidia's Market Share Halved; Domestic AI Chipmakers Like Cambricon Regain Ground"

Risk disclosure: The Hong Kong Stock Connect Information Technology ETF Hua Bao and its feeder fund passively track the CSI Hong Kong Stock Connect Information Technology Composite Index, which has a base date of November 14, 2014, and was launched on June 23, 2017. Constituent stocks mentioned are for illustrative purposes only; individual stock descriptions do not constitute investment advice or reflect the holdings or trading activities of the fund manager. This product is issued and managed by Hua Bao Fund. Distributors are not responsible for investment, redemption, or risk management of the product. Investors should carefully read the Fund Contract, Prospectus, and Key Fund Information Document to understand the fund’s risk-return profile and select products matching their risk tolerance. Past performance does not predict future results. Performance of other funds managed by the fund manager does not guarantee this fund’s performance. Invest with caution! The fund manager assesses this fund’s risk level as R4 (medium-high risk), suitable for aggressive (C4) and higher risk-rated investors. Sales agencies (including the fund manager’s direct sales channels and other distributors) evaluate the fund’s risk per relevant regulations. Investors should refer to sales agencies’ appropriateness opinions, with matching results taking precedence. Appropriateness assessments may vary across sales agencies, though their risk ratings cannot be lower than the fund manager’s assessment. Risk-return characteristics in the fund contract and risk ratings may differ due to varying evaluation factors. Investors should understand the fund’s risks and returns, and choose products cautiously based on investment objectives, horizon, experience, and risk tolerance. CSRC registration does not guarantee the fund’s value, prospects, or returns. Investing involves risks; caution is advised.

MACD golden cross signals have formed, with several stocks showing strong gains.