Funds are actively positioning in the Hong Kong stock technology sector. The popular stock is the Hang Seng Tech ETF Huatai-PineBridge (513130) with increased trading volume.

Recently, tensions between the U.S. and Iran have escalated, with market expectations of conflict shifting from “short-term” to “long-term.” Coupled with high oil prices boosting inflation and rising expectations for Federal Reserve interest rate hikes, global liquidity tightening expectations have intensified, putting pressure on the Hong Kong stock market, which is highly sensitive to interest rates, leading to a significant correction yesterday.

According to Wind data, as of March 23, 2026, the price-earnings ratio of the Hang Seng Tech Index has dropped to 20.81 times, which is at a relatively low percentile level of 12.88% since the index was launched, indicating that the current price is below nearly 90% of the time in the past. In terms of the magnitude of the correction, the Hang Seng Tech Index has been in a continuous correction channel since October 2025, with a maximum drawdown of 29.48% in the past six months, surpassing the maximum drawdown of 27.91% for the entire year of 2025—i.e., the correction level during the trade tariff friction conflict in April 2025—which may have opened up space for market positioning.

As the index valuation returns to historically low ranges, the Hang Seng Tech Index, which has high elasticity and embodies the AI industry narrative, may begin to be revalued, with significant signs of capital flowing into ETFs against the trend. Wind data shows that the Hang Seng Tech ETF from Huatai-PB (513130) received over 580 million HKD in funding on March 23, 2026, making it the only product among all ETFs tracking the Hang Seng Tech Index to attract more than 400 million HKD.

As a mainstream tool for allocating Hong Kong tech stocks that supports T+0 trading, the Hang Seng Tech ETF from Huatai-PB (513130) has a significant scale advantage, with the latest size reaching 48.676 billion HKD and an average daily trading volume of over 5.8 billion HKD this year, being the only ETF tracking the Hang Seng Tech Index to break the 5.1 billion HKD average daily trading volume during the same period. The product management fee rate is 0.2% per year.

Meanwhile, southbound capital is also accelerating its entry during the correction. On March 23, southbound capital net bought over 29.7 billion HKD in a single day, second only to the record of 37.2 billion HKD set on March 9 this year, demonstrating a positive outlook for the medium to long-term trend of Hong Kong stocks and providing strong support for the market. (Data source: Wind)

As a market dominated by foreign capital, the Hong Kong stock market is highly sensitive to changes in global liquidity. Against the backdrop of ongoing external uncertainties, market volatility may remain high, but it could also open up space for long-term positioning. In addition to the Hong Kong tech sector, opportunities for allocating Hong Kong stocks may be discovered along the directions of industrial trends, valuation recovery, high elasticity, and dividend strategies: 1) Innovative drugs: The Hang Seng Innovative Drug ETF from Huatai-PB (520500) focuses precisely on the innovative drug sector, while the Hang Seng Biotech ETF from Huatai-PB (513930) balances the two core areas of CXO and innovative drugs, and is expected to benefit from the strong trend of innovative drugs going overseas; 2) Consumption: The Hang Seng Consumer ETF from Huatai-PB (520500) has its underlying index, the Hang Seng Consumer Index, at a PE ratio that is only at a low percentile level of 3.07% over the past decade, covering scarce targets in the new consumption sector and is expected to benefit from consumption recovery opportunities arising from expanding domestic demand; 3) Dividends: The Hong Kong Stock Connect Dividend Low Volatility ETF from Huatai-PB (520890) focuses on high dividend, low volatility assets in the Hong Kong stock market, with the latest dividend yield of the underlying index reaching 5.77%, possibly possessing strong defensive attributes.

As one of the first ETF managers in the market, Huatai-PB has been deeply engaged in the index investment field for nearly 20 years, creating the market’s first dividend-themed ETF and the first cross-market ETF, the CSI 300 ETF from Huatai-PB, among other products. By the end of 2025, the company has won the “Passive Investment Golden Bull Award” eight times, and its ETFs have collectively generated over 164 billion HKD in profits for holders in the past two years, making it one of only four fund companies in the market to achieve cumulative profits exceeding 100 billion HKD during the same period; in terms of fees, 77.8% of the company’s ETF products adopt the current market’s lowest tier fee structure for equity index funds (management fee rate of 0.15% per year + custody fee rate of 0.05% per year).

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