On March 9, escalating tensions between the U.S. and Iran triggered global market panic. Both A-shares and H-shares declined simultaneously, with Hong Kong-listed hard tech component stocks weakening across the board. Semiconductor Manufacturing International Corporation fell over 4%, Xiaomi Group-W dropped 1.8%, while Lenovo Group and SenseTime-W declined more than 3%. The Hong Kong Information Technology ETF (159131), the first ETF focusing on the Hong Kong semiconductor industry chain, saw its market price drop 3.98%. Capital continued flowing in during the downturn, with net subscriptions exceeding 300 million units during the trading session, following over 100 million yuan of net inflows during the previous five trading days.

A latest research report from Soochow Securities indicated that overseas investors are concerned the U.S.-Iran conflict may last longer than expected, potentially pushing oil prices above $100 per barrel. Combined with unexpectedly weak U.S. employment data, Wall Street has fallen into "stagflation" panic, reducing expectations for interest rate cuts. This may trigger global capital to sell risk assets, affecting Hong Kong stocks as well. Soochow Securities further noted that Hong Kong stocks currently demonstrate attractive valuations but investors should still control position sizes. Market direction may follow policy guidance from the "Two Sessions," potentially creating resonance between A-shares and H-shares.

On the policy front, the latest government work report for 2026 outlined plans to cultivate and strengthen emerging and future industries, aiming to build new pillar industries including integrated circuits, aerospace, biomedicine, and low-altitude economy.

This directly points to a super cycle for Hong Kong semiconductor stocks! The Hong Kong Information Technology ETF (159131)—the market's first ETF tracking the Hong Kong semiconductor industry chain and offering T+0 trading—follows an index composed of "70% hardware + 30% software." It heavily weights Hong Kong stocks in semiconductors, electronics, and computer software, covering 42 Hong Kong-listed hard tech companies. Semiconductor Manufacturing International Corporation holds the largest weight at 15.21%, followed by Xiaomi Group-W at 12.08% and Hua Hong Semiconductor at 8.68%. The ETF excludes large-cap internet companies like Alibaba, Tencent, and Meituan, providing sharper focus and better capture of Hong Kong's AI hard tech trends. (Data as of January 30, 2026)

Source: China Securities Index Company, Shanghai and Shenzhen Stock Exchanges. Institutional views reference: Guosen Securities, "Hong Kong March Investment Strategy: Iran Situation Evolution to Significantly Impact Economic Cycle This Year."

Note: "First in the market" refers to the first ETF tracking the CSI Hong Kong Stock Connect Information Technology Composite Index. The index sets a maximum single constituent weight of 15%, though actual weights may exceed this limit due to market capitalization fluctuations. Index constituents are rebalanced semi-annually, when single stock weights are generally readjusted to the 15% cap. Recent market volatility may be significant, and short-term performance does not indicate future results. Investors should make rational investment decisions based on their capital status and risk tolerance, paying close attention to position management and risk control.

ETF fee explanation: Subscription and redemption agents for the Hong Kong Information Technology ETF may charge commissions up to 0.5%. On-exchange trading fees are subject to securities companies' actual charges. No sales service fees are applied.

Risk disclosure: The Hong Kong Stock Connect Information Technology ETF passively tracks 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. Constituent stocks mentioned are for illustrative purposes only; individual stock descriptions do not constitute investment advice nor represent any fund's holdings or trading activities managed by the fund manager. This product is issued and managed by Huabao Fund. Distributors do not assume investment, redemption, or risk management responsibilities. Investors should carefully read the Fund Contract, Prospectus, and Key Fund Information Document to understand the fund's risk-return characteristics and select products matching their risk tolerance. Past performance does not guarantee future results, and performance of other funds managed by the manager does not indicate this fund's future performance. Fund investments carry risks. The fund manager assesses this fund's risk level as R4 (medium-high risk), suitable for aggressive (C4) and higher risk-rated investors. Sales agencies (including the manager's direct sales channels and other distributors) evaluate the fund's risk according to relevant regulations. Investors should promptly review appropriateness opinions provided by sales agencies and base decisions on matching results. Appropriateness assessments may vary across sales agencies, though their risk ratings cannot be lower than the manager's assessment. Differences may exist between the fund's risk-return characteristics described in the contract and its risk rating due to different evaluation factors. Investors should understand the fund's risk-return profile and make careful selections based on investment objectives, horizon, experience, and risk tolerance, assuming investment risks independently. CSRC registration does not guarantee the fund's investment value, market prospects, or returns. Funds carry risks—invest cautiously.