The quarterly adjustment for the Hong Kong Stock Connect Information Technology Index has officially taken effect on September 14, with the passively tracking Hong Kong Stock Connect Information Technology ETF HuaBao (159131) undergoing a synchronized portfolio refresh. This rebalance introduces several notable changes for investors focused on Hong Kong's hard technology sector.

The index rebalance features a "10 in, 3 out" adjustment, expanding the total constituent count to 74 stocks. Ten new Hong Kong-listed hard tech companies have been added, including Hantian Chengcheng, Changguang Chenxin, Qunhe Technology, Zhongke Wenge, SENASIC, Yungu Valley Technology, Aixin Yuanzhi, Extreme Vision, Kete Shares, and Fourier. Meanwhile, three small-cap constituents—Medical Crossing Technology, Mingyuan Cloud, and Healthway—have been removed from the index.

Following a temporary adjustment on August 17 that added six constituents such as Luxshare Precision, Sanneng Huanqing, and Minimax, the index now holds 74 stocks, further enhancing its hard technology capacity. The newly added names represent some of the most cutting-edge companies in Hong Kong's tech landscape.

All ten newly added constituents were included in the Stock Connect program on September 7, meaning the ETF has swiftly incorporated the latest eligible targets. This rapid integration ensures the fund captures emerging opportunities in the Hong Kong market without delay, providing investors with timely exposure to innovative tech companies.

The index maintains its focus on Hong Kong's chip and semiconductor supply chain, with the ten new additions predominantly concentrated in semiconductors, integrated circuits, and electronics. Key newcomers include Hantian Chengcheng, a leader in silicon carbide epitaxial wafers; Yungu Valley Technology, a display driver chip specialist; Aixin Yuanzhi, focused on vision-side AI chips; and Fourier, an audio amplifier chip expert. These names complement existing heavyweight constituents like SMIC and Hua Hong Semiconductor, creating a comprehensive portfolio of Hong Kong's core hard tech assets.

Industry data from Omdia shows global semiconductor revenue surpassed $425 billion in Q2 2026, setting a new record high. Artificial intelligence demand and firm memory chip prices continue to drive market trends, pushing total H1 2026 semiconductor revenue to $752 billion. Since June, the index has experienced ongoing volatility and adjustment, making valuations increasingly attractive. With AI infrastructure investment expanding, demand for advanced memory remains strong, and global memory manufacturers are accelerating capacity expansion, sustaining high industry activity in China's chip supply chain.

Zhongyuan Securities notes that domestic semiconductor equipment substitution is progressing steadily, recommending attention to investment opportunities in domestic semiconductor equipment and parts manufacturers. The index is constructed with approximately 80% hardware and 20% software components, heavily weighted toward semiconductors, electronics, and computer software, while excluding large-cap internet companies like Alibaba, Tencent, and Meituan, making it a purer play on Hong Kong's AI-driven hard tech momentum.

Investors without securities accounts can also access this strategy through the off-market feeder fund (026755) for one-click exposure to Hong Kong hard tech stocks. As of September 14, 2026, key constituent weightings include SMIC at 14.67%, Hua Hong Semiconductor at 6.86%, Hantian Chengcheng at 0.43%, Changguang Chenxin at 0.21%, Qunhe Technology at 0.06%, Zhongke Wenge at 0.06%, SENASIC at 0.09%, Yungu Valley Technology at 0.06%, Aixin Yuanzhi at 0.08%, Extreme Vision at 0.06%, Kete Shares at 0.06%, and Fourier at 0.06%.

The ETF supports T+0 trading, offering flexibility for active investors. Historical index returns (HKD) from 2021-2025 were -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively, with corresponding volatility rates of 4.13%, 4.63%, 4.00%, 5.49%, and 5.45%. Past performance does not indicate future results. The fund is classified as R4 risk level, suitable for aggressive (C4) and above investors. Market volatility may be significant in the near term, and investors should carefully consider their risk tolerance and position management when making investment decisions.