On August 10, 2026, Hang Seng Indexes Company published a proposal to revise its methodology, aiming to implement the most significant structural reform of the Hang Seng Tech Index since its inception in 2020: the constituent count will expand from 30 to 50 stocks, tech sub-themes will increase from 16 to 24, and a dual-track stock selection mechanism incorporating both market capitalisation and revenue growth will be introduced for the first time. The Hang Seng Tech Index is poised to evolve into a true "comprehensive collection of Chinese technology," covering sectors such as AI, advanced hardware, robotics and semiconductors, potentially lifting its investment appeal considerably. Against this backdrop, quantitative investment powerhouse Fullgoal Fund officially launched Hang Seng Tech ETF Fullgoal (158042) today, which closely tracks the Hang Seng Tech Index and aims to provide investors with a convenient tool to capitalise on the index upgrade opportunity at relatively low valuations.

From an investment value perspective, the Hang Seng Tech Index (HSTECH), closely tracked by Hang Seng Tech ETF Fullgoal (158042), brings together the 30 most representative technology leaders in the Hong Kong stock market. Wind data shows that, as of August 31, the index's top ten constituents include NetEase, Tencent Holdings, Xiaomi Group, Meituan, BYD Company and Alibaba, collectively accounting for approximately 72% of the index weight. Meanwhile, its sector allocation is relatively balanced across SW secondary industries, including software services (22.3%), specialty retail (21.0%), information technology hardware (14.7%), automobiles (13.4%) and semiconductors (10.5%), with this "hardware-software synergy" characteristic potentially enabling better adaptation to different market styles and conditions. Notably, the Hang Seng Tech Index embeds a rigorous innovation screening mechanism in its compilation rules, requiring constituent stocks to satisfy at least one of the following criteria: possessing a technology platform attribute, having R&D expenditure accounting for no less than 5% of revenue, or achieving annual revenue growth of no less than 10%, thereby enhancing the index's technological purity and growth momentum.

Looking at the current landscape, the most noteworthy variable is the ongoing reform of the Hang Seng Tech Index, which could elevate its "technology credentials" to the next level. Once the reform takes effect, constituent stocks will expand from 30 to 50, incorporating more high-quality targets in frontier areas such as AI, advanced hardware and robotics, making the technology focus clearer. The dual-track stock selection mechanism adds a revenue growth channel alongside traditional market capitalisation filters, allowing "small but high-growth" enterprises to be included, thereby improving the index's ability to capture quality companies. The final revised proposal is expected to be announced at the end of September 2026, with corresponding constituent changes likely taking effect after the market close on the first Friday of December 2026. Industry institutions point out that the reformed Hang Seng Tech Index will transform from a consumer-internet-heavy composition into a "comprehensive Chinese technology collection" broadly covering hard-tech sectors, further enhancing its representativeness and investability as a core allocation tool for Hong Kong technology stocks.

Additionally, from a margin-of-safety perspective in allocation, the Hang Seng Tech Index's latest price-to-earnings ratio stands at 24.64 times as of August 31, below the five-year average of 28.34 times, placing it in a historically lower range. When compared horizontally with major global indices, its valuation appeal is also relatively prominent. Meanwhile, research institutions generally believe that the resilience of the Hong Kong stock market is strengthening, and the Hang Seng Tech Index benefits from this round of reform, with medium-to-long-term logic around structural optimisation and AI industry profits spreading downstream remaining unchanged. Under the convergence of three positive factors — index upgrade, low valuations and business cycle transmission — Hang Seng Tech ETF Fullgoal (158042) is expected to provide investors with a convenient one-stop tool for capturing the upgrade opportunities in Hong Kong technology stocks.

As one of the original "old ten" public fund companies in China, Fullgoal Fund has been deeply engaged in index and quantitative investing for over 17 years, with a comprehensive product line. As of August 21, 2026, it manages 94 ETF products and 64 feeder funds, ranking third in the industry by number of products. The wealth of experience in index quantitative management is expected to provide solid support for the stable operation of Hang Seng Tech ETF Fullgoal (158042). The management fee is 0.50% per annum, with a custodian fee of 0.10% per annum. For subscription fees: subscription amounts (M) less than 500,000 units incur a 0.30% fee; amounts from 500,000 to less than 1,000,000 units incur a 0.20% fee; amounts of 1,000,000 units or more incur a flat fee of 1,000 RMB per transaction. Note: no subscription fee is charged when the fund manager handles offline cash subscription. Selling agencies may charge commissions for online and offline cash subscriptions under the above fee structure. Subscription fees are used to cover expenses incurred during the offering period, including marketing and distribution, and are not included in fund assets. When investors subscribe to fund shares, the subscribing and redeeming broker may charge a commission of no more than 0.3%; when investors redeem fund shares, the broker may charge a commission of no more than 0.5%, including fees charged by the stock exchange and registration institutions.

Data sources: Hang Seng Indexes Company, Wind, as of August 31, 2026. Figures represent point-in-time data only and may be subject to adjustments based on index compilation methodology and market conditions. Constituent stock listings do not represent stock recommendations and do not constitute investment advice; they may be adjusted according to index methodology and market conditions. Historical data does not predict future results. The above content does not represent forecasts of market or industry trends, nor does it constitute investment actions or advice. Risk warning: The market carries risks, and investment requires caution. This fund is an index fund; the historical performance of the underlying index does not predict its future performance and does not constitute a guarantee of fund performance. Investors should be aware of the investment risks of index funds, including but not limited to deviations between the underlying index return and the average stock market return, index volatility, and deviations between the fund portfolio return and the underlying index return. This fund is an exchange-traded open-ended fund, and specific risks also include: indexation investment risk, underlying index volatility risk, risk of deviation between underlying index returns and average stock market returns, risk of errors in underlying index value calculation, risks arising from underlying index compilation methodology, risk of changes to the underlying index, risk of failure to achieve tracking error targets, risk of constituent stock suspensions, risk of discontinuation of services by the index compiler, risk of premium/discount in secondary market trading prices, arbitrage risk, risk of decisions based on reference IOPV and IOPV calculation errors, risk of errors in subscription/redemption lists, subscription and redemption risks, delisting risk, and risks of third-party service providers. This fund is raised and valued in RMB; the fund may invest in Hong Kong market financial instruments denominated in HKD, and fluctuations in the RMB/HKD exchange rate may increase fund NAV volatility, potentially affecting fund performance. This fund may invest in the Hong Kong market through qualified domestic institutional investor (QDII) offshore investment quotas and the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect mechanisms. Investing in the Hong Kong securities market exposes the fund to specific risks arising from differences in the investment environment, investment targets, market systems and trading rules under Hong Kong securities and Stock Connect mechanisms.