Despite a recent pullback in Hong Kong's tech sector, ETFs tracking the industry have seen significant inflows. Data from Wind shows that as of November 25, tech-focused ETFs—including those covering technology, internet, and biotech—attracted a net inflow of 43.9 billion yuan over the past month. Among these, 13 Hang Seng Tech ETFs collectively drew over 24 billion yuan.

The Hang Seng Tech Index and related benchmarks have declined more than 7% in the past month, with notable underperformers including Alibaba-W and SMIC, which fell 6.24% and 15.06%, respectively. Analysts attribute the downturn to hawkish signals from the U.S. Federal Reserve, reduced expectations for a December rate cut, and profit-taking after earlier gains.

However, investors remain optimistic about the long-term prospects of Hong Kong's tech sector, which includes industry leaders like Tencent, Alibaba, and Xiaomi. These companies have strong positions in cutting-edge fields such as AI, cloud computing, and mobile payments.

The Hang Seng Tech Index currently trades at a P/E ratio of 22.5x, near the 27th percentile of its 10-year range, presenting a valuation discount compared to the Nasdaq 100. Some analysts see this as an attractive entry point, particularly given expectations of AI-driven growth.

Regarding concerns about an "AI bubble," institutions like CICC argue that short-term market volatility doesn’t diminish the long-term potential of AI. Companies successfully integrating AI into scalable business models, such as Google, are seen as likely winners.

Looking ahead, market recovery may hinge on Fed policy shifts and AI industry developments. Southbound capital inflows into Hong Kong stocks have exceeded 1.3 trillion yuan this year, suggesting sustained institutional interest.