In today's (November 10) morning session, A-shares and H-shares recovered together, with hard tech represented by chip semiconductors showing standout performance. The underlying index of Hong Kong Stock Connect Information Technology ETF (159131) gapped up at the open and is now up 3.59%. Constituent stocks across the index are almost universally in the green: Yunyinggu Technology surged over 19%, Qunhe Technology and Tianshu Zhixin each rose more than 10%, MINIMAX and Zhipu gained over 8%, while SMIC and Hua Hong Semiconductor advanced more than 3%.

From a global market perspective, overnight U.S. chip stocks staged a "violent counterattack," and this morning Japanese and South Korean markets also strengthened in early trading, prompting Hong Kong's three major indices to open higher in response. Regarding the medium-to-long-term logic for tech hardware, CICC judges that near-term North American data center construction is changing the slope of hardware demand but has not yet altered the long-term prosperity trend; domestic computing power demand may be even stronger, and it emphasizes that the sharp sell-off in overseas AI supply chain stock prices may have already squeezed out valuation bubbles sufficiently. In 3Q26, the combined capital expenditure of the top four U.S. cloud providers grew 84.2% year-on-year, indicating demand is still translating into revenue.

Shenwan Hongyuan proposes that hardware competition is shifting from single-point chip domestic substitution toward a full-stack self-closed loop centered on super-node scale networking, software-hardware collaborative ecosystems, and domestic model deployment. Competitiveness is switching from "building hardware" to system-level competitiveness measured by "effective cost per Token + scale delivery capability." It also flags that HBM will be tight in 2027, bottleneck processes remain constrained, and domestic computing power, 3D IC, liquid cooling, and super-nodes must work together to break through.

Scarce "pure-blood" hard tech in Hong Kong! T+0 trading supported! Hong Kong Stock Connect Information Technology ETF (159131) tracks the Hong Kong Stock Connect Information C Index, which is composed of approximately "80% hardware + 20% software," heavily weighted in Hong Kong-listed "semiconductors + electronics + computer software," covering 77 Hong Kong hard tech companies, including the "wafer foundry duo" SMIC and Hua Hong Semiconductor, "domestic AI PC leader" Lenovo Group, and the "domestic large model duo" Zhipu and Minimax. The constituent stocks exclude large-cap internet companies such as Alibaba, Tencent, and Meituan, making it easier to capture Hong Kong's AI hard tech market trends. Additionally, investors without securities accounts can also access Hong Kong hard tech through the off-exchange feeder fund (026755) with a single click.

Where to start

Weight data source: China Securities Index Company, as of 2026.10.30. According to the fund manager's assessment, the risk level of Hong Kong Stock Connect Information Technology ETF is R4-medium-high risk, suitable for aggressive (C4) and above investors. Suitability matching opinions should be based on the sales institution. Recent market volatility may be significant; short-term gains or losses do not predict future performance, and fund investment may result in losses. Investors must invest rationally based on their own financial situation and risk tolerance, paying close attention to position and risk management.

Data source

China Securities Index Company, Shanghai and Shenzhen Stock Exchanges.

ETF fund-related fee explanation

When investors subscribe or redeem fund shares, the subscription and redemption agency may charge a commission of no more than 0.5%. On-exchange trading fees are subject to actual charges by securities companies, and no sales service fee is charged. The subscription fee for Hong Kong Stock Connect Information Technology ETF feeder fund is 0.30% for amounts under 1 million yuan, 0.20% for 1 million yuan (inclusive) to 2 million yuan, and 1,000 yuan per transaction for 2 million yuan (inclusive) and above; for individual investors, 1.50% for less than 7 days, and 0.00% for 7 days (inclusive) and above. For institutional investors, 1.50% for less than 7 days, 1.00% for 7 days (inclusive) to 30 days, 0.50% for 30 days (inclusive) to 180 days, and 0.00% for 180 days (inclusive) and above; no sales service fee is charged. Fund management fee: 0.5% per year; fund custody fee: 0.1%. Fund fee rates are detailed in each fund's legal documents.

Individual stock notice

The index constituent stocks mentioned in this article are for display purposes only. Individual stock descriptions do not constitute any form of investment advice and do not represent the holdings or trading activities of any fund under the manager.

Institutional view sources

CICC 20261106 "Tech Hardware: Short-Term Headwinds for Overseas AI Infrastructure, Continued Optimism for Domestic Computing Power Development During the 15th Five-Year Plan"; Shenwan Hongyuan 20261109 "2027 Domestic AI Investment Strategy: Momentum Shift, Process Not Complete."

Risk disclosure

Hong Kong Stock Connect Information Technology ETF passively tracks the CSI Hong Kong Stock Connect Information Technology Composite Index, whose base date is 2014.11.14 and was published on 2017.6.23. The CSI Hong Kong Stock Connect Information Technology Composite Index (HKD) historical annual returns for 2021-2025 were: -9.54%, -34.47%, -0.25%, 21.58%, 39.30%; annual volatility for 2021-2025 was: 4.13%, 4.63%, 4.00%, 5.49%, 5.45%. Past index performance does not predict future results. Index constituent composition is adjusted from time to time according to the index compilation rules, and its back-tested historical performance does not predict future index performance. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for their own investment decisions. Additionally, any views, analysis, and forecasts in this article do not constitute any form of investment advice to readers, nor do they bear any responsibility for direct or indirect losses caused by the use of this content. Fund investment involves risks; past performance of a fund does not represent its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are rising well!