SMIC(SH:688981) Xin Lang Ji Jin·2025-12-18 10:06Core Viewpoint - The Hong Kong technology sector continues to experience adjustments, but there is a significant inflow of capital into related products, indicating investor confidence in the sector's future growth [1] Group 1: Market Trends - As of December 17, 2025, over 6.2 billion has been invested in Hang Seng Technology-related ETFs since December, with the Hang Seng Technology ETF (513130) receiving a net inflow of 775 million, reaching a historical high of 59.671 billion shares [1] - Southbound capital showed a net inflow of 7.164 billion on December 25, 2025, primarily focused on leading internet stocks in Hong Kong, reflecting confidence in the sector [1] Group 2: Valuation Insights - The Hang Seng Technology Index's price-to-earnings ratio is at 32 times as of December 17, 2025, which is at a mid-low percentile level compared to the past five years [1] - The index's valuation is lower than that of the Nasdaq Index (40.36 times) and the Sci-Tech Innovation 50 Index (157.38 times), highlighting its potential value in global tech assets [1] Group 3: Key Holdings - The top five constituents of the Hang Seng Technology Index include Meituan-W, Xiaomi Group-W, Tencent Holdings, Alibaba-W, and SMIC, which are strong players in internet, mobile payment, cloud computing, and artificial intelligence [1] - Compared to A-share hard tech companies, Hong Kong tech assets are more focused on applications and internet platforms, representing a unique segment in the market [1] Group 4: Investment Tools - The Hang Seng Technology ETF (513130) is recognized as a primary investment tool for the Hong Kong tech sector, with over 220,000 account holders as of the latest mid-year report [1] - The ETF offers good liquidity, supports T+0 trading, and has a management fee rate of only 0.2%, making it suitable for low-cost exposure to Hong Kong tech assets [1]