SMIC(SH:688981) Xin Lang Ji Jin·2025-10-27 05:36Core Viewpoint - The Hong Kong stock market is experiencing a strong upward trend driven by favorable policies and external factors, particularly in the technology sector, with significant capital inflow into the Hang Seng Tech ETF [1][2] Group 1: Market Performance - The Hang Seng Tech Index has shown strong performance, with the Hang Seng Tech ETF (513130) attracting 2.333 billion yuan in capital over 12 trading days from October 9 to October 24, 2025, leading to a total share count exceeding 51 billion, marking a 55% increase year-to-date [1] - The Hang Seng Tech Index currently has a price-to-earnings (PE) ratio of 23.28, which is lower than that of major tech indices in A-shares and US markets, indicating a potentially attractive valuation [2] Group 2: Economic and Policy Context - The 20th Central Committee of the Communist Party of China emphasized "high-level technological self-reliance," strengthening long-term policy expectations for the tech sector [1] - Recent US-China trade talks in Kuala Lumpur have led to constructive discussions on key economic issues, signaling a potential easing of tensions and improving market risk appetite [1] Group 3: Investment Opportunities - The Hang Seng Tech ETF is seen as a crucial tool for investors looking to capitalize on core assets in the Hong Kong tech sector, benefiting from its large scale, good liquidity, and low fees [2] - The management of the Hang Seng Tech ETF, Huatai-PB Fund, has extensive experience in ETF operations, having launched several leading ETFs in the market [2][3]