SMIC(SH:688981) Xin Lang Cai Jing·2025-12-15 05:10Core Viewpoint - The Hong Kong technology sector is experiencing a continuous pullback due to multiple factors, including a decline in risk appetite and a slowdown in southbound capital inflows. However, there is a notable trend of share buybacks among listed companies, signaling strong confidence in the industry's development [1][2]. Group 1: Share Buybacks - Over 250 Hong Kong listed companies have implemented share buybacks this year, totaling over 7 billion shares and exceeding 168 billion HKD in buyback amounts. The technology sector has shown significant buyback activity, reflecting strong confidence in current industry developments [1][2]. Group 2: ETF Performance - The Hang Seng Technology ETF (513130) has seen net inflows for six consecutive trading days during market adjustments, with its latest share count reaching 58.673 billion and a total size of 43.43 billion HKD. The average daily trading volume for the year is 5.226 billion HKD, indicating it as a favorable tool for investors looking to position themselves in the Hong Kong technology sector [3]. Group 3: Market Trends and Future Outlook - The recent adjustments in the Hong Kong technology sector are primarily attributed to liquidity disturbances. However, trends such as revenue growth from AI and accelerated commercialization among internet companies may provide future support for the sector [3]. - Dongwu Securities suggests that there may still be room for interest rate cuts by the Federal Reserve next year, which could benefit growth stock valuations. Additionally, the global technology cycle and potential advancements in China's AI sector could lead to greater elasticity in the Hong Kong technology sector [3]. Group 4: Index and Key Companies - The Hang Seng Technology Index, closely tracked by the Hang Seng Technology ETF, includes companies with core competitiveness and growth potential. The top five constituents are Meituan-W, Xiaomi Group-W, Tencent Holdings, Alibaba-W, and SMIC, all of which have substantial technological foundations in areas like internet, mobile payments, cloud computing, and artificial intelligence [3]. - As of December 12, 2025, the Hang Seng Technology Index has a price-to-earnings ratio of 23.72, which is at a low percentile compared to the past five years, suggesting potential investment opportunities in larger, more liquid ETFs and their associated funds [3].