Mei Ri Jing Ji Xin Wen·2026-01-06 01:53Core Viewpoint - The Hong Kong stock market, particularly the technology sector, is experiencing a strong recovery, with the Hang Seng Index rising 28% in 2025, marking its best annual performance since 2017. The technology sector remains a key focus for investors as they enter 2026 [1][3]. Group 1: Market Performance - The Hong Kong Technology ETF (513020) surged over 4% on January 5, 2026, during the mainland market closure [1]. - The Hang Seng Index's 28% increase in 2025 reflects a significant turnaround in the market [1]. Group 2: Supporting Factors for Technology Sector - The macroeconomic environment is improving, supported by a tariff truce between China and the U.S. and rising expectations for interest rate cuts by the Federal Reserve in 2026, alleviating external liquidity pressures [3]. - China's GDP grew by 5.2% year-on-year in the first three quarters of 2025, indicating a stabilization in the domestic economy [3]. - The explosive growth of the AI industry, exemplified by the performance of the domestic AI model DeepSeek, has significantly boosted market confidence and led to a revaluation of the entire industry chain [3]. - Semiconductor leader SMIC saw a remarkable 117% increase in its stock price in 2025, highlighting strong investor recognition of "hard technology" [3]. Group 3: ETF Characteristics - The Hong Kong Technology ETF tracks the CSI Hong Kong Stock Connect Technology Index, which includes major internet platforms like Tencent, Meituan, and Xiaomi, as well as heavyweights in the biopharmaceutical sector, providing a balanced exposure to both soft and hard technology [3]. - This structure allows the index to benefit from profit releases driven by internet giants while capturing the explosive growth in AI and other cutting-edge sectors [3]. Group 4: Future Outlook - Despite potential short-term volatility due to profit-taking, the long-term fundamentals of the Hong Kong technology sector remain strong [4]. - The price-to-earnings (PE) ratio of the Hang Seng Technology Index has rebounded from its lows but still offers a significant comparative advantage over U.S. tech stocks [4]. - The trend of capital inflow into Hong Kong stocks is expected to continue, supported by the resonance of "policy bottom" and "market bottom" [4]. - For investors optimistic about China's technological innovation and industrial upgrading, the Hong Kong Technology ETF (513020) is recommended for phased investment or systematic investment plans to capitalize on the ongoing technology bull market [4].