Southbound trading exceeded HKD 26 billion in a single day, the liquidity environment of Hong Kong stocks may improve marginally, and the Hang Seng Technology ETF by Huatai-Pampa (513130) fund shares exceeded 80 billion!

Despite recent volatility and pullbacks in the Hong Kong stock market, funds are actively increasing their positions in the Hong Kong tech sector during dips. On March 19, 2026, southbound funds had a total net purchase of HKD 26.19 billion, the second-highest daily net buy this year, only behind the record HKD 37.213 billion net inflow on March 9, 2026.

In addition to the steady accumulation by southbound funds, the ongoing escalation of geopolitical conflicts has made Hong Kong, with its offshore market status, low valuation advantages, and well-developed financial system, an important safe haven and long-term allocation destination for overseas capital from the Middle East and other regions. Furthermore, as the annual report season approaches its end, major internet companies are expected to resume share buybacks, injecting liquidity into the Hong Kong market. As a key sector, Hong Kong tech assets may see valuation recovery opportunities.

The improving fundamentals of heavyweight stocks also provide solid support. Recently, two leading internet giants released their 2025 financial reports. The social media leader’s revenue for 2025 first exceeded HKD 700 billion, reaching HKD 751.766 billion, a 14% year-over-year increase; net profit attributable to shareholders was HKD 224.842 billion, up 16%, both revenue and profit hitting record highs. AI technology has deeply empowered core businesses such as gaming, advertising, and video channels, further validating the commercialization logic of AI. Another leading e-commerce platform’s cloud services grew 36% year-over-year, with AI-related product revenue increasing triple digits for the tenth consecutive quarter.

Funds are accelerating their contrarian positioning in core Hong Kong tech assets through popular ETFs. The Hang Seng Tech ETF by Huatai-PineBridge (513130) recently surpassed HKD 80 billion in fund units, ranking among the top in its category. Since February this year, it has attracted HKD 11.4 billion in net inflows, with an average daily trading volume of HKD 6.2 billion, making it one of the few ETFs in the market with cumulative net inflows exceeding HKD 8 billion and daily trading volume over HKD 5.3 billion.

The Hang Seng Tech ETF by Huatai-PineBridge (513130) closely tracks the Hang Seng Tech Index, which includes 30 large-cap, highly liquid core tech companies. The top ten weights are Xiaomi Group-W, BYD Co., Ltd., Meituan-W, Tencent Holdings, Alibaba-W, NetEase-S, SMIC, JD.com-SW, Kuaishou-W, and Baidu Group-SW. It is regarded as a “barometer” and “core asset” for Chinese tech stocks, covering key areas such as computing infrastructure, AI model capabilities, application scenarios, and commercial monetization, and is expected to benefit from the AI wave.

The latest PE ratio of the Hang Seng Tech Index is 22 times, only slightly above the lowest in the past five years (26.41%), indicating a historically low valuation range. Given its quality, it may now be in a value zone worth attention. Huatai Securities believes that Hong Kong stocks have experienced early correction, with valuations at a relatively low level globally, making them attractive for allocation.

The Hang Seng Tech ETF (513130), which supports T+0 trading, is one of the most recognized mainstream tools for Hong Kong tech sector allocation among investors. Its latest scale is HKD 50.851 billion, with a significant scale advantage. Since the beginning of the year, it has had an average daily trading volume of over HKD 5.8 billion, one of the few ETFs tracking the Hang Seng Tech Index with an average daily volume exceeding HKD 5.1 billion. The management fee is 0.2% per year.

Additionally, according to Huatai-PineBridge Fund’s announcement, the Hang Seng Tech ETF (513130) will change its on-exchange trading abbreviation to “Hang Seng Tech ETF Huatai-PineBridge” starting March 18, 2026, aligning the index name with the product abbreviation for clearer investment positioning. Huatai-PineBridge has been deeply involved in index investment for nearly 20 years, creating the market’s first dividend-themed ETF, the first cross-market ETF, and flagship products like the CSI 300 ETF. By the end of 2025, its ETFs had generated over HKD 164 billion in cumulative profits for holders over the past two years, making it one of only four fund companies in the market with cumulative profits exceeding HKD 1 trillion. The management fee structure for 77.8% of its ETF products is among the lowest in the market, at 0.15% management fee plus 0.05% custody fee annually.

Daily Economic News

(Edited by: He Chong)

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