Daily subscription surged to 93 million shares! Funds frantically "sweep up" Hong Kong stock hard tech, the only Hong Kong stock information technology ETF in the market (159131) plummeted 5.63%

Monday, March 23, — Asia-Pacific stock markets experienced a “Black Monday,” with A-shares and Hong Kong stocks plunging simultaneously, and Hong Kong’s hard tech sector continuing to decline. The only Hong Kong Information Technology ETF (159131) traded volatile all day, closing down 5.63%, marking its largest single-day drop since listing and hitting a new intraday low. “Bottom-fishing” funds accelerated inflows amid the decline, with daily subscriptions reaching 9.3 million units and net subscriptions of 8.7 million units.

Dongwu Securities comments: Under the backdrop of Middle East geopolitical conflicts, fires have severely damaged refineries in Iran, Qatar, and Kuwait, keeping oil prices high. The Federal Reserve’s hawkish stance suppresses market liquidity. If oil prices remain elevated, it will further delay the Fed’s shift and increase global liquidity pressure, continuously weighing on emerging risk assets like Hong Kong stocks. Overall, the valuation of the Hang Seng Tech Index has significantly retreated, but cautious positioning on the left side of the market is advised, waiting for clearer catalysts.

Huatai Securities believes that, from a short-term perspective, the main contradiction is the risk of sharp oil price increases and stagflation caused by overseas geopolitical conflicts. It recommends increasing risk-hedging positions. Semiconductor hardware such as storage, which corresponds to internal and external gaps in AI chains, may be opportunistically accumulated on dips if macro beta declines.

In terms of valuation, the investment value of the Hong Kong chip industry chain stands out. As of March 20, the latest P/E ratio of the Hong Kong Information Technology ETF (159131) target index was 32.12x, placing it in the 25.16% percentile over the past three years, with room to expand to 58% from the February 2025 high.

Pointing directly to a super cycle in Hong Kong stocks chips! The T+0 Hong Kong chip industry chain ETF—the only market ETF focusing on the “Hong Kong chip” industry chain (159131), with an off-market connect fund code 026755—its target index is composed of 70% hardware and 30% software, heavily weighted in Hong Kong stocks in semiconductors, electronics, and computer software. It includes 45 Hong Kong hard tech companies, with SMIC (Semiconductor Manufacturing International Corporation) weighting at 14.07%, Xiaomi Group-W at 12.41%, and Huahong Semiconductor at 7.47%. Excluding large-cap internet giants like Alibaba, Tencent, and Meituan, it offers sharper focus and easier capture of Hong Kong AI hard tech trends. (As of March 11, 2026)

Data source: China Securities Index Co., Ltd., Shanghai and Shenzhen Stock Exchanges.

Note: “The only market ETF” refers to the only ETF tracking the CSI Hong Kong Stock Connect Information Technology Composite Index.

Fund fee disclosure: The Hong Kong Information Technology ETF’s subscription and redemption agents may charge a commission of up to 0.5%. On-market trading fees are subject to the actual charges of securities firms. No sales service fee is charged.

Institutional views: Dongwu Securities’ “Conflict Escalation, Hong Kong Stocks Under Pressure — Weekly Hong Kong Market Outlook”; Huatai Securities’ “Hong Kong Market Strategy: Maintain Low Equity Position”

Risk warning: The Hong Kong Information Technology ETF and its linked funds passively track the CSI Hong Kong Stock Connect Information Technology Composite Index, which was launched on November 14, 2014, and published on June 23, 2017. The index components shown are for display only; individual stock descriptions are not investment advice and do not represent holdings or trading activity of any fund managed by the manager. This product is issued and managed by Huabao Fund, with distribution by agents who do not bear investment, redemption, or risk management responsibilities. Investors should carefully read the fund contract, prospectus, and key information documents to understand the fund’s risk-return profile and choose products suitable for their risk tolerance. Past performance does not predict future results; performance of other funds managed by the manager does not guarantee future performance. Investment in funds involves risks. The fund’s risk level is assessed as R4—moderate to high risk, suitable for active investors (C4) and above. Sales institutions (including direct sales by the fund manager and other sales channels) are required to evaluate the fund’s risk according to relevant laws and regulations. Investors should pay attention to suitability opinions issued by sales institutions and rely on their matching results. Different sales channels may have varying suitability assessments, and the risk level evaluations provided by sales institutions should not be lower than those by the fund manager. The fund contract may specify different risk and return characteristics due to differing considerations. Investors should understand the fund’s risk-return profile, consider their investment objectives, horizon, experience, and risk capacity, and choose accordingly. The China Securities Regulatory Commission’s registration of this fund does not imply any judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks; invest cautiously! The fund’s risk level is rated R4—moderate to high risk, suitable for active investors (C4) and above.