Last week, Hong Kong stocks experienced volatile and divergent movements, yet a notable trend of capital increasing positions against the trend emerged. Southbound capital and returning foreign funds are expected to jointly support Hong Kong market liquidity and the recovery of sector valuations. According to Huatai Securities statistics, as of last Wednesday, foreign capital recorded a net inflow of US$1.88 billion into Hong Kong stocks under the EPFR measure, maintaining a high level. Concurrently, Wind data showed that southbound capital recorded a net inflow of HK$56 billion into Hong Kong stocks last week, a significant increase from the previous week's HK$2.7 billion, marking the highest level since October 2025. The information technology sector in Hong Kong was a key area for increased positioning, suggesting the Hong Kong tech sector may receive renewed support from capital flows.
As a popular product for accessing the Hong Kong stock market, the Hang Seng Tech ETF (513130) has seen net capital inflows for a consecutive week, accumulating total inflows of RMB 3.884 billion. It became the only ETF in the A-share market during the same period with cumulative net inflows exceeding RMB 3.5 billion, driving its total units to a record high of 68.6 billion since its inception. This potentially reflects growing confidence among investors in the medium to long-term allocation prospects of the Hong Kong technology sector.
Fundamentally, leading Hong Kong tech companies are actively building their AI ecosystems. It was reported that on February 6, 2026, the Qianwen App launched a "Spring Festival 3 Billion Free Orders" promotion, distributing over 1 million milk tea orders within less than three hours of launch. The Qianwen App is now integrated with Alibaba ecosystem platforms such as Taobao, Alipay, Fliggy, and Amap, and has launched AI shopping features. The internet sector traditionally benefits from Spring Festival traffic, and this year, leading Hong Kong tech players are leveraging this to intensify their AI efforts, leading to increasingly optimistic market expectations regarding the AI narrative for Hong Kong tech stocks.
From a valuation perspective, the Hang Seng Tech Index currently appears highly attractive. The index's latest price-to-earnings (PE) ratio stands at only 22.13 times, positioned at the 25.67th percentile of its historical range over the past five years. This is considerably lower than the US Nasdaq Index (40.56 times) and the A-share STAR 50 Index (162.42 times). Supported by advancements in AI, capital inflows, and relatively low valuations, the Hang Seng Tech Index may currently be entering a strategic period for investment allocation.
The Hang Seng Tech ETF (513130) supports intraday T+0 trading, offering a convenient way to gain exposure to a basket of core technology assets in the Hong Kong market. It closely tracks the Hang Seng Tech Index, which aggregates leading technology companies with technological expertise and business presence in areas like internet services, cloud computing, and artificial intelligence. These companies are expected to play a leading role in the development of large language models and the implementation of AI applications. Reportedly, the Hang Seng Tech ETF (513130) charges a management fee of only 0.2% per annum, potentially helping investors access the Hong Kong tech sector at a low cost. For investors unable to trade ETFs directly, related ETF feeder funds offer an alternative investment channel.
The fund manager of the Hang Seng Tech ETF (513130), Huatai-PineBridge Fund, is one of China's first ETF managers. Beyond sector-specific ETFs, the firm also has substantial experience in broad-market and dividend-themed index products. Its "Dividend Family Bucket" series includes the Dividend ETF (510880), the Low Volatility Dividend ETF (512890), the Hong Kong Connect Dividend ETF (513530), the Central SOE Dividend ETF (561580), and the Hong Kong Connect Low Volatility Dividend ETF (520890), which could serve as suitable defensive components within a "barbell strategy" investment approach.
Risk Warning: Funds carry risks, investment requires caution.