A surge of over 5% in the Hang Seng Tech Index, driven by capital rotation, highlights the appeal of the Hang Seng Tech ETF (520570) as an efficient vehicle for investing in leading Hong Kong-listed technology companies.

Hang Seng Tech ETF (520570) rose nearly 4%, and as of press time, was up 5% to 0.651 yuan, with a turnover of 134 million yuan.

On the news front, overnight gains in U.S. stocks and a sharp rally in the Nasdaq Golden Dragon China Index lifted market sentiment. Hong Kong's three major indices continued to climb this morning, with a number of star internet stocks posting strong gains that propelled the Hang Seng Tech Index up nearly 6%. With the U.S. midterm elections concluded, global risk appetite has recovered, and capital is accelerating its return to previously oversold core Hong Kong technology assets.

According to CITIC Securities, after sufficient adjustment, the valuation appeal of the Hang Seng Tech Index has become significantly prominent, standing at one of the lowest valuation percentiles among major global broad-based technology indices, offering a relatively high margin of safety for medium- to long-term investors.

Public information shows that the Hang Seng Tech ETF (520570.SH; feeder fund Class A: 020988; Class C: 020989) under Southern Fund closely tracks the Hang Seng Tech Index, covering 30 technology companies listed in Hong Kong with relatively large market capitalizations and high liquidity, including Tencent Holdings, NetEase, Alibaba, and SMIC. It is an important tool for capturing the trends of the Hong Kong technology sector.