Report Title - 2026 Annual Hong Kong Stock Fund Investment Strategy [5] 1. 2025 Review of the Hong Kong Stock Market 1.1 Index Performance - The Hang Seng Index rose 27.77% in 2025, with monthly fluctuations including a 13.43% increase in February and a 4.33% decrease in April [11]. - The Hang Seng Tech Index increased by 23.45% in 2025, with significant gains in February (17.88%) and September (13.95%) [11]. - Among industries, the raw materials industry had the highest annual increase of 161.34%, followed by the healthcare industry at 57.24% [11]. 1.2 Capital Flows - The report presents data on southbound capital inflows by year and week in 2025, but specific numerical summaries are not provided in the text [14]. 1.3 Stock Performance - Top 10 net - bought stocks through the Hong Kong Stock Connect in 2025 include Alibaba - W (177.87 billion), Meituan - W (73.30 billion), etc., while top 10 net - sold stocks include Sunny Optical Technology Group Co., Ltd. (- 6.06 billion) [16]. 2. Technology Index - Type Hong Kong Stock Funds 2.1 Fund Performance - In 2025, the annual returns of technology - themed Hong Kong stock funds varied. For example, Invesco Great Wall CSI Hong Kong Stock Connect Technology ETF had an annual return of 30.63%, while China Southern Asset Management Co., Ltd. Hang Seng Tech Index A had an annual return of 17.75% [24][26]. 2.2 Index Details - Different technology indices such as CSI Hong Kong Stock Connect Technology, Guozheng Hong Kong Stock Connect Technology, etc., have different selection methods, sample spaces, and weighting methods. For example, CSI Hong Kong Stock Connect Technology selects 50 components from the CSI Hong Kong Stock Connect Composite Index [30]. 2.3 Industry Allocation and Valuation - Technology indices have different industry allocations, with software + internet accounting for a relatively high proportion. For example, the CSI Hong Kong Stock Connect Technology index has a software + internet allocation of 43% [33]. - The PE - TTM and historical percentile valuations of technology indices are provided. For example, the CSI Hong Kong Stock Connect Technology index has a PE - TTM of 24.53 and a historical percentile of 47.12% [38]. 3. Internet Index - Type Hong Kong Stock Funds 3.1 Fund Performance - Internet - themed Hong Kong stock funds also showed different performance in 2025. For example, E Fund CSI Overseas China Internet 50 ETF had an annual return of 28.44%, while China Asset Management Co., Ltd. Hang Seng Internet Technology Industry ETF had an annual return of 24.51% [42]. 3.2 Index Details - Internet indices have different sample spaces and selection methods. For example, the CSI Hong Kong Stock Connect Internet index selects 30 components from the CSI Hong Kong Stock Connect Composite Index [45]. 3.3 Industry Comparison and Valuation - Internet indices have different industry allocations, with media and retail trade accounting for a relatively high proportion. For example, the CSI Hong Kong Stock Connect Internet index has a media allocation of 30.11% [46]. - The PE - TTM and historical percentile valuations of internet indices are presented. For example, the CSI Hong Kong Stock Connect Internet index has a PE - TTM of 24.43 and a historical percentile of 24.61% [50]. 4. Hong Kong Stock Dividend Index - Type Funds 4.1 Fund Performance - Dividend - themed Hong Kong stock funds had different returns in 2025. For example, GF CSI Hong Kong Stock Connect Non - Bank Financial Theme ETF had an annual return of 45.82%, while China Southern Asset Management Co., Ltd. Hang Seng Hong Kong Stock Connect High - Dividend - Yield ETF had an annual return of 22.27% [58]. 4.2 Index Details - Dividend indices have different selection methods and industry allocations. For example, the CSI Hong Kong Stock Connect High - Dividend index has a bank allocation of 29.40% [62]. 4.3 Dividend Yield and Valuation - The dividend yields of dividend indices are provided. For example, the Hang Seng Hong Kong Stock Connect China Central - State - Owned Enterprises Dividend index has a dividend yield of 6.94% [65]. 5. Actively Managed Hong Kong Stock Funds 5.1 Fund Performance - Actively managed Hong Kong stock funds showed different performance in 2025. For example, China Southern Hong Kong Stock Connect Advantage Enterprises A had an annual return of 51.75%, while Great Wall Hong Kong Stock Connect Value Selective Multi - Strategy A had an annual return of 31.46% [78]. 5.2 Investment Style and Industry Allocation - Different fund managers have different investment styles and industry allocations. For example, the investment style of China Southern's fund manager Luai focuses on technology and resources, with a high allocation to industries such as non - ferrous metals and media [85].