Hong Kong's hard technology sector continued its strong performance during the morning session on April 20. The largest and most liquid* Huabao Hong Kong Stock Connect Information Technology ETF (159131) surged over 2.2% intraday, aiming for its third consecutive day of gains and decisively breaking above the 60-day moving average. The ETF recorded a real-time trading volume of 124 million yuan.

Galaxy Securities pointed out that as geopolitical risk premiums subside, any substantive de-escalation in U.S.-Iran tensions could trigger the strongest rebound in Hong Kong's tech sector, which is highly sensitive to risk sentiment. The firm recommends focusing on semiconductors/hardware equipment, leading internet companies in AI, and AI application providers.

Supporting T+0 trading, Huabao Hong Kong Stock Connect Information Technology ETF (159131) is the largest of its kind and the first ETF in the market to concentrate on the "Hong Kong chip" industry chain. Its offshore feeder fund code is 026755. The underlying index consists of "70% hardware + 30% software," heavily weighting Hong Kong-listed companies in semiconductors, electronics, and computer software. The ETF covers 50 hard tech companies, including Xiaomi Group-W with a 13.25% weighting, SMIC with 12.54%, Lenovo Group with 9.04%, and Hua Hong Semiconductor with 7.09%. It excludes large-cap internet firms like Alibaba, Tencent, and Meituan, offering sharper focus and greater potential to capture the AI hard tech trend in Hong Kong. (Data as of March 31, 2026)

Data source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges.

Note: "First in the market" refers to Huabao Hong Kong Stock Connect Information Technology ETF (159131) being the first ETF to track the CSI Hong Kong Stock Connect Information Technology Composite Index. As of April 17, 2026, the ETF had an on-market size of 505 million yuan, making it the largest among the four listed ETFs tracking the index. Its average daily turnover since the start of the year has been 120 million yuan.

Fund fee note: Subscription and redemption agents for the Hong Kong Information Technology ETF may charge a commission of up to 0.5%. On-market trading fees are subject to the rates set by securities firms. No sales service fee is charged.

*Institutional view reference source: Galaxy Securities report "Hong Kong Stock Trends Focus on Two Key Factors."

Risk disclosure: Huabao Hong Kong Stock Connect Information Technology ETF 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. The index constituents mentioned are for illustrative purposes only; individual stock descriptions are not investment advice and do not represent the holdings or trading activities of any fund managed by the asset manager. This product is issued and managed by Huabao Fund. Distributors are not responsible for the product's investment, redemption, or risk management. Investors should carefully read the Fund Contract, Prospectus, and Fund Product Summary to understand the fund's risk-return profile and select products matching their risk tolerance. Past performance does not indicate future results. The performance of other funds managed by the manager does not guarantee this fund's performance. Invest with caution. The manager assesses this fund's risk level as R4 - medium to high risk, suitable for aggressive (C4) and higher risk-tolerant investors. Sales institutions (including the manager's direct sales and other distributors) evaluate the fund's risk according to relevant laws. Investors should consider the suitability opinions provided by sales institutions, with matching results as the basis. Suitability assessments may vary among sales institutions, but their risk ratings cannot be lower than the manager's assessment. The fund's risk-return characteristics in the contract and its risk rating may differ due to varying assessment factors. Investors should understand the fund's risks and returns, and choose products carefully based on their investment objectives, horizon, experience, and risk tolerance, bearing their own risks. CSRC registration does not guarantee the fund's value, prospects, or returns. Funds carry risks; invest cautiously.

MACD golden cross signals have formed, indicating positive momentum for these stocks.