Hong Kong stocks experience a strong rebound, with fund-led stocks taking the lead

Securities Times reporter An Zhongwen

After undergoing a deep pullback, Hong Kong stocks have finally welcomed a long-awaited rebound. On April 1, all major sectors of Hong Kong stocks surged across the board. By the close, the Hang Seng Tech Index rose 2.29%, and the Hang Seng Healthcare Index jumped 6.39%.

From the market view, bundled holdings by funds have become the core driving force behind the rebound. Several main themes have risen, including robots (300024), innovative drugs, retail consumption, artificial intelligence (AI), and internet entertainment. In each segment, the key target stocks have recorded impressive gains, showing the characteristics of a broad-based rebound.

Specifically, the robotics sector delivered standout performance. Youbai Xuan, heavily held by Qianhai Open-Source Fund, surged 17.10% in a single day, while MicroPort Robot Holdings rose nearly 9%—held by Eastmoney Fund. The innovative drugs sector also moved higher in parallel. LetPub Bio, heavily held by Jingshun Changcheng Fund, closed up 14.42%, and SanSheng Pharmaceutical, heavily held by E Fund, rose about 12%. In the retail consumption theme, BlueSnow, heavily held by BOCOM Schroder Fund, rose 6.09%, and Oriental Selection, held by Minsheng CanalSilver Fund, saw a gain of 10.46%; in the artificial intelligence sector, Jingtai Holding, heavily held by Fubon Fund, rose 8.10%; the internet entertainment segment also clearly rebounded. Bilibili, heavily held by Ping An Fund, rose nearly 7%, and Child City Technology, held by Southern Fund, jumped 10.43%.

It is worth noting that on April 1, Hong Kong stocks’ aviation sector led the entire market with a gain of 8.58%, becoming the most direct reflection of consumer recovery, which is also corroborated by statistical data. The National Bureau of Statistics recently reported that in February, the CPI同比 rose 1.3% year over year, hitting the highest level in nearly three years. Among them, the service consumption prices rebounded particularly notably. Airfares, vehicle and equipment leasing, travel agency fees, and hotel accommodation prices rose 29.1%, 19.8%, 12.5%, and 5.4%, respectively. The rebound in prices along the travel chain directly reflects the repair of residents’ offline consumption demand, and provides solid fundamental support for sectors such as aviation, hotels, and tourism. Public funds represented by Guangfa Ruiyi Leading Fund have also made heavy allocations. Fund manager Lin Yingrui, a star manager, has continued to buy into the consumer recovery theme. The fund’s top six heavy-holding stocks are all aviation stocks, so it has reaped substantial gains in this rebound.

As for the current structure of the Hong Kong stock rebound expanding from localized strength to the whole market, many fund managers believe it is related to confidence repair after undervaluation.

A consumption-sector fund manager in South China said that the current deployment of southbound funds is no longer limited to a small number of popular themes; the coverage is continually expanding, reflecting that institutional capital’s confidence in Hong Kong stocks is being restored. The key support lies in the fact that Hong Kong stocks’ overall valuation remains in historically low ranges, making the value-for-money in allocation particularly prominent. The February CPI data further validates the trend of domestic demand recovery. This provides support for the rebound rally to spread from the broader market into consumption and services sectors, ultimately forming a situation where technology, consumption, pharmaceuticals, and resource-cycle sectors move together.

However, public fund practitioners judge that the Hong Kong stock rebound may be difficult to achieve in one step, and the focus still needs to remain on realizing earnings.

“Many sentiment indicators have already released bottom signals, but the sustainability of the rebound still depends on the validation of earnings.” A sector research analyst at a fund company in Shenzhen also believes that the current style in Hong Kong stocks is rapidly rotating with marginal changes in the geopolitical conflict in the Middle East: when tensions heat up, defensive assets take the upper hand; when the situation eases, tech growth leads. Whether the market can continue to strengthen afterward mainly depends on two variables: first, whether geopolitical risk will further ease and bring overseas capital back; second, whether earnings can deliver on the optimistic outlook for the business cycle, providing clearer allocation cues for capital.

(Editor: Li Yue)

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