Recent geopolitical tensions between the U.S. and Iran have led to a rapid decline in global risk appetite, placing short-term pressure on Hong Kong stocks. However, the Hang Seng Tech Index has captured significant market attention. Legendary Wall Street investor Michael Burry, along with leading domestic securities firms, has collectively expressed optimism toward the index. This has increased investor interest in the Great Wall Hang Seng Tech Index (QDII) (Class A: 024148, Class C: 024149), managed by Great Wall Fund. Why is the Hang Seng Tech Index viewed favorably? In summary, three key factors are driving this consensus.
Market sentiment has been influenced by Michael Burry, known as Wall Street's "Big Short" for accurately predicting the 2008 subprime mortgage crisis. He recently made a rare public statement on social media, noting that companies linked to the Hang Seng Tech Index have seen substantial stock price declines over the past few years, leading to severely compressed valuations. However, their revenues and profits have maintained steady growth. This significant divergence between valuation and fundamentals is creating a historic investment opportunity. Even before Burry's comments, capital had been flowing into Hong Kong's tech sector. Notably, the technology sector is a core focus for southbound capital, with information technology being the primary area of interest based on recent trends in Hong Kong Stock Connect industry fund flows.
From a valuation perspective, as of March 24, the Hang Seng Tech Index's latest price-to-earnings ratio (PE TTM) has fallen to 21.41 times, significantly lower than that of the STAR 50 and Nasdaq 100 indices, highlighting its attractive investment value. In terms of price corrections, the Hang Seng Tech Index has been in a sustained downtrend since October 2025, with a cumulative decline of over 25%, potentially creating opportunities for market entry. (The above data is for illustrative purposes only and does not constitute actual investment advice. Investors should exercise caution.)
A recent research report from China Merchants Securities further indicated that the valuation of Hong Kong's tech sector is approaching historically low levels, with previous lows observed in March 2022, October 2022 (during rapid foreign capital outflows), and late 2023 (due to gaming regulations). The current regulatory and economic development environment for internet companies is relatively more favorable compared to 2022 and 2023. Against the backdrop of AI advancements and national strategies to boost technology, Hong Kong's tech stocks appear relatively undervalued. (Source: China Merchants Securities report "Six Reasons to Be Confident in the Hang Seng Tech Index at the Current Juncture—Hong Kong Stock Series Research Report," published February 9, 2026. The above data is for illustrative purposes only and does not constitute investment advice. Investors should exercise caution.)
At the industry level, Hong Kong's tech sector holds a key position in the AI ecosystem. For example, the Hang Seng Tech Index's constituents cover critical areas such as computing power (semiconductors), model capabilities (internet platforms), application scenarios (consumer electronics), and commercial monetization (e-commerce, gaming), forming a complete cycle from technology implementation to value realization. With the ongoing strengthening of AI industry trends, the index is well-positioned to demonstrate greater growth potential due to its related ecosystem. A latest research report from Everbright Securities pointed out that during phases of reinforced AI industry logic and capital回流, Hong Kong's tech sector generally exhibits higher elasticity compared to tech sectors in other markets. (Source: Everbright Securities report "OpenClaw Ushers in a New Era of Agents, Hong Kong Tech Returns to AI Growth Trajectory," March 10, 2026.)
Lei Jun, General Manager of the Quantitative and Index Investment Department at Great Wall Fund, believes that the Hang Seng Tech Index represents core assets of China's new economy and technological growth within the Hong Kong market. After undergoing sufficient adjustments, it has reached a stage worthy of active attention.
Currently, a consensus is forming among both domestic and international investors regarding the positive outlook for the Hang Seng Tech Index. For ordinary investors, utilizing index funds is a convenient way to capture sector opportunities. The Great Wall Hang Seng Tech Index QDII closely tracks the Hang Seng Tech Index and aggregates leading tech companies not readily available in the A-share market, helping investors efficiently access core opportunities in the AI industry.
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