SMIC(SH:688981) Xin Lang Cai Jing·2025-12-17 05:10Core Viewpoint - The Hong Kong technology sector is experiencing a pullback, with the Hang Seng Tech Index nearing its annual line, prompting increased market interest and inflows into related assets, particularly the Hang Seng Tech ETF (513130) which saw significant net subscriptions [1][5]. Group 1: Market Dynamics - The Hang Seng Tech ETF (513130) recorded a net subscription of 990 million shares in a single day, raising its total shares to 59.663 billion and its latest scale to 42.337 billion yuan [1][5]. - The average daily trading volume of the Hang Seng Tech ETF (513130) since Q4 2025 has reached 5.468 billion yuan, indicating strong liquidity [1][5]. - Factors such as the anticipated release of locked shares in December, a slowdown in southbound capital inflows, and rising expectations for interest rate hikes in Japan have contributed to liquidity pressures in the Hong Kong market [1][5]. Group 2: Regulatory Environment - The Hong Kong Securities and Futures Commission and the Hong Kong Stock Exchange are set to strengthen IPO regulations, which may enhance the quality of listing applications and improve capital allocation efficiency, potentially alleviating liquidity pressures in the long term [1][5]. Group 3: Employment Data Impact - Recent data from the U.S. Bureau of Labor Statistics indicated an increase of 64,000 non-farm jobs, surpassing market expectations, while the unemployment rate rose to 4.6%, the highest since September 2021. This volatility in the U.S. job market may reinforce market expectations for continued interest rate cuts by the Federal Reserve, potentially injecting liquidity into the Hong Kong tech sector [1][5]. Group 4: Valuation Metrics - The latest price-to-earnings (P/E) ratio of the Hang Seng Tech Index has fallen to 22.74, placing it in the lower 31.42% range over the past five years, suggesting potential value for investors [2][6]. - Compared to major tech indices in A-shares and U.S. markets, the Hang Seng Tech Index's valuation is significantly lower, with the Nasdaq Index at 41.09 and the Sci-Tech Innovation 50 Index at 156.57 [2][6]. Group 5: ETF Characteristics - The Hang Seng Tech ETF (513130) is recognized as a preferred tool for investors looking to allocate to the Hong Kong tech sector, with over 220,000 account holders as of the latest mid-year report [3][7]. - The ETF offers advantages such as large scale, superior liquidity, and support for T+0 trading, with an annual management fee of 0.2%, making it a cost-effective option for investors [3][7].