Strategic Diversification Across Six Cutting-Edge Technology Themes: E Fund HKEx Tech 100 ETF (03456) Offers a Basket Approach to China's Tech Potential

Stock News
Jun 30

The narrative around technology has evolved from "the internet changing life" to encompass a diverse range of cutting-edge fields including AI, biopharmaceuticals, autonomous driving, and robotics, necessitating a corresponding evolution in investment tools.

The E Fund HKEx Tech 100 ETF (03456) offers investors a more efficient tool for accessing Hong Kong-listed tech stocks through its broad coverage of 100 constituent stocks, strategic allocation across six frontier technology themes, strict screening mechanisms for liquidity and fundamentals, and a favorable risk-return profile.

The underlying HKEx Tech 100 Index selects 100 constituents with a more balanced market capitalization distribution. As of June 15, 2026, the combined weight of the top ten constituents is approximately 61.5%, and the top twenty account for about 76.6% of the index. This moves investment focus beyond a few internet giants, offering exposure to a wider array of emerging tech sectors and providing investors with broader opportunities to position within the technology industry.

Through this index, investors can participate in the growth of tech companies at various development stages, rather than concentrating solely on a handful of leading internet behemoths.

Delving into the constituents across the six specific themes reveals a comprehensive collection of industry leaders. The artificial intelligence theme includes newly added model leader Zhipu AI Co Ltd (HKG: 02513), alongside AI vision and chip leaders like Sensetime Group Inc (HKG: 00020) and Biren Technology (HKG: 06082).

The information technology theme aggregates leading wafer foundries such as Semiconductor Manufacturing International Corp (HKG: 00981) and Huahong Grace Semiconductor Manufacturing Corp (HKG: 01347), as well as core companies in computing infrastructure, terminals, and optical communications like Kingboard Laminates Holdings Ltd (HKG: 01888), Lenovo Group Ltd (HKG: 00992), Yangtze Optical Fibre and Cable Joint Stock Ltd (HKG: 06869), and ZTE Corp (HKG: 00763).

The biotech and pharmaceuticals theme encompasses top-tier global CRO/CDMO players like WuXi AppTec Co Ltd (HKG: 02359) and WuXi Biologics (Cayman) Inc (HKG: 02269), alongside leading domestic innovative drug developers such as Innovent Biologics Inc (HKG: 01801) and Akeso Inc (HKG: 09926).

The robotics theme covers representative firms in humanoid and surgical robotics, including UBTECH Robotics Corp Ltd (HKG: 09880) and MicroPort MedBot Corp (HKG: 02252).

The internet sector brings together mainland China's trillion- and multi-hundred-billion-dollar platform giants, as well as leaders in content services and digital health like Kuaishou Technology (HKG: 01024) and JD Health International Inc (HKG: 06618).

The electric vehicles and autonomous driving theme covers leading manufacturers across vehicle assembly, power batteries, and intelligent driving chips, including BYD Co Ltd (HKG: 01211), Contemporary Amperex Technology Co Ltd (HKG: 03750), Ganfeng Lithium Group Co Ltd (HKG: 01772), and Horizon Robotics (HKG: 09660).

In its construction methodology, the HKEx Tech 100 Index employs screening mechanisms for constituent liquidity and fundamentals. This process aims to select high-quality tech companies with both growth potential and profitability, while excluding less liquid, lower-tier stocks.

The index also leverages the unique listing framework for tech companies on the Hong Kong Exchange to fully incorporate frontier technology firms.

The E Fund HKEx Tech 100 ETF successfully listed on June 26, as the first ETF to track the HKEx Tech 100 Index. It provides investors with a convenient and efficient channel to capture the long-term growth potential of China's tech landscape through a single basket investment.

The constituent stocks of the HKEx Tech 100 Index feature a relatively balanced market cap distribution and broad coverage across tech themes. This allows the index to better capture diverse growth opportunities during market rotations between various emerging technology trends.

Furthermore, the index's screening rules for liquidity and fundamentals help ensure the inclusion of quality tech companies that possess both innovation capabilities and profitability.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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