During the early trading session today (June 22), Hong Kong stocks in the hard technology sector led the market higher. KNOWLEDGE ATLAS and Kingboard Holdings Limited both surged over 18%, while Semiconductor Manufacturing International Corporation (SMIC) rose more than 3%. The largest and most liquid* ETF tracking Hong Kong-listed tech stocks, the Huabao (159131) ETF, saw its on-exchange price jump 3.09%, hitting a new intraday high since its listing, with real-time turnover reaching 1.9 billion yuan.

Some analysts believe that, from a medium-term perspective, the AI computing power supply chain, semiconductors, and internet platforms remain the most scarce and growth-oriented sectors in the Hong Kong market. They suggest focusing on sub-sectors with strong profit visibility, such as semiconductor equipment/materials, and AI platform applications and software.

Looking at its performance over the past six months, the underlying index for the Huabao (159131) ETF—the CSI Hong Kong Connect Information Technology Composite Index—has gained over 30%. This significantly outperformed the Hang Seng TECH Index by 45%, the Hang Seng Stock Connect Technology Index by 41%, and the Hang Seng Stock Connect Internet Index by over 58%, demonstrating notable sharpness and resilience.

An Overview of the Key ETF

This ETF is a rare, pure-play hard technology fund for the Hong Kong market and supports T+0 trading. As the first and largest ETF of its kind with the highest liquidity, its on-exchange code is 159131, with an off-exchange feeder fund code of 026755. Its underlying index is composed of "80% hardware + 20% software," heavily weighted towards Hong Kong-listed "semiconductor + electronics + computer software" stocks.

The ETF covers 60 Hong Kong-listed hard tech companies. The combined weight of the two wafer fabrication giants, SMIC and Huahong Semiconductor, exceeds 21%. The domestic AI PC leader, Lenovo Group, holds a weight of 15.89%. The combined weight of the PCB leaders, Kingboard Holdings and Kingboard Laminates Holdings, is over 10%. These three holdings represent the highest concentration in their respective categories among all index-linked products in the market.

Recent Index Enhancements

Furthermore, the index recently added several prominent new hard tech companies, including KNOWLEDGE ATLAS and Biren Technology. Notably, the index's constituents do not include large-cap internet firms like Alibaba, Tencent, or Meituan. This composition enhances its focus and makes it more effective at capturing trends in Hong Kong's AI and hard technology sectors.