On October 22, the Hong Kong Stock Exchange hosted the 2025 HKEX China Opportunity Forum in Shanghai. Yang Kun, Deputy General Manager and Investment Director of Huaxia Fund, stated during a panel discussion that Hong Kong, as a crucial hub connecting global capital and China's technology industry, presents significant market valuation and development opportunities. He is very optimistic about the sustained growth prospects for the Hang Seng Technology and Hang Seng Biotechnology Indices.
In recent years, Yang noted that China's technology industry has demonstrated remarkable resilience, achieving growth that exceeds expectations. This development is supported by deep-seated drivers, rather than merely surface-level trends. The emergence of DeepSeek earlier this year became a pivotal point for international investor sentiment, prompting global investors to reassess the resilience and growth potential of China's technology industry, even in the face of external pressures and challenges.
On one hand, China's ongoing advancements in the technology sector serve as a solid foundation for industry development. He highlighted that trends in technological progress across multiple sectors, including semiconductors, new energy, and biotechnology, continue to gain momentum, consolidating the groundwork for future growth. Furthermore, China's long-term investments in education and the cultivation of high-tech talent have injected robust energy into the industry. This combination of industry and talent advantages is likely to drive long-term progress in the technology sector.
On the other hand, he emphasized the positive role of the Hong Kong stock market in supporting the development of China's technology industry. The HKEX's 18A listing rule provides a vital financing channel for numerous unprofitable yet potentially high-growth biotechnology and innovative tech companies, facilitating their rapid growth through capital markets.
Yang shared that over the past year, an increasing number of high-quality tech companies have gone public or achieved secondary listings in Hong Kong. Technology companies represented by the Hang Seng Technology Index have been enhancing their industrial chain layout within the Hong Kong market, showing continual depth and significance.
According to Yang, when foreign capital returns to the Hong Kong market, the investment perspective has shifted significantly, moving away from traditional assets like liquor, and increasingly focusing on China's technology industry, particularly on investment opportunities in innovative high-performance companies. Artificial Intelligence, as a core of the new wave of technological innovation, is beginning to present investment opportunities. The current narrative of innovation has transformed into a competition between American and Chinese capital, vividly illustrating the evolving gap in the global technological competition landscape.
From a global asset allocation perspective, he pointed out that China's GDP accounts for approximately 16% to 18% of the world's total, while the proportion of Chinese assets in related MSCI indices is only about 3%. This indicates a substantial potential for future overseas capital allocation in the Chinese market.
As a significant ETF issuer domestically, Huaxia Fund has actively positioned itself in the Hong Kong stock market, launching a range of high-quality ETF products related to the Hang Seng Technology, Hang Seng Biotechnology, and Hang Seng Internet Financial Services indices. Moreover, following the establishment of the Stock Connect mechanism in Hong Kong, Huaxia Fund has expanded its product offerings in areas such as healthcare, automotive, and technology. As of September this year, the total scale of Huaxia Fund's active and passive products in the Hong Kong stock market has surpassed 100 billion yuan.
Please note: The information presented is sourced from a cooperating media outlet and is intended for informational purposes only. It does not imply endorsement of the views expressed or confirmation of the descriptions. The content is for reference only and does not constitute investment advice. Investors undertake all risks associated with their investment decisions.