Storage has surged—what should you do if you’re “risk-averse”? Lock in the same-source assets at a lower price! Follow the ETF with the highest storage holdings among Hong Kong stocks.

Why AI? Why has a Hong Kong-listed storage ETF become a cost-effective choice?

On May 9, U.S. storage stocks surged. Micron Technology rose by more than 15%, to $743.79 per share, and continued to set record highs. The rapid advancement of artificial intelligence has driven a breakout surge in demand for high-bandwidth memory (HBM) chips, pushing the industry into a new round of super cycle.

Several fund managers noted that the investment logic for storage chips has shifted entirely from the earlier “price competition” to a stage of “fundamentals delivering results.”

CITIC Securities also pointed out that, at present, storage original equipment manufacturers’ capacity expansion faces both subjective and objective constraints. The release of effective production capacity in 2026 will be limited, and the substantial release of new capacity is expected to wait until late 2027 to 2028. From a supply-and-demand perspective, this means the storage sector’s growth sustainability has at least a window of nearly two years, and it is still far from the stage where the “peak has passed.”

Notably, with the recent rapid rally in A-share storage stocks, within the A-share and Hong Kong cross-listed source of similar assets, the cost-effectiveness of Hong Kong stocks has stood out—for example, taking SMIC as an example, as of May 9, its A-share price is 1.88 times that of its Hong Kong share price.

Data shows that the Huaxia (526000) Hong Kong Stock Connect Information Technology ETF tracks the CSI Hong Kong Stock Connect Information Technology Composite Index (abbreviated as “Hong Kong Stock Connect Information C”). It selects stocks from the Hong Kong Stock Connect constituents whose first-level industry classification is information technology, focusing on three core areas: “semiconductors + electronics + computers.” Among its constituent stocks are SMIC (0981.HK) and Hua Hong Semiconductor (1347.HK), which are both storage wafer foundry players; GigaDevice (3986.HK) and Shanghai Fudan (1385.HK) in the flash memory space; and Lianqi Technology (6809.HK), an interface chip manufacturer that is indispensable for memory modules. The total combined weight of the five storage-related stocks exceeds 25%, making them the ETF holding with the highest storage exposure among current Hong Kong-listed ETFs.

Daily Economic News