券商中国·2026-03-04 23:28Core Viewpoint - The Hong Kong stock market, particularly the Hang Seng Technology Index, has experienced significant declines, with a nearly 30% drop since October last year, despite ongoing buying interest from various funds [2][3]. Group 1: Market Performance - The Hang Seng Technology Index has seen a 12.45% decline year-to-date, with individual stocks like Kingdee International dropping nearly 30% and others like Ctrip, Meituan, Xiaopeng Motors, and Tencent Music falling over 20% [3]. - The overall decline of the Hang Seng Index has exceeded 27% since its peak on October 3 of the previous year, with many fund managers expressing that the recent drop was beyond their expectations [3]. Group 2: Investment Trends - Despite the market downturn, there has been a strong influx of capital into the Hang Seng Technology sector, primarily from three sources: southbound funds, company buybacks, and cross-border ETFs [5]. - Southbound funds have shown resilience, with 27 out of 36 trading days this year recording net inflows, totaling HKD 181.8 billion [5][6]. - Major companies like Tencent and Alibaba have seen significant increases in their holdings from southbound funds, with Tencent's market value held by these funds exceeding HKD 540 billion [6]. Group 3: Valuation and Future Outlook - The current rolling price-to-earnings ratio of the Hang Seng Technology Index is at 20.09, which is below the historical average, indicating a potential undervaluation compared to tech stocks in the US, Japan, and South Korea [7]. - Fund managers believe that the negative sentiment has largely been priced in, and there is an expectation of a rebound in earnings growth, with projected EPS growth exceeding 40% for 2026 [7][8]. - The anticipated exit of external pressures and a return to focus on intrinsic growth within the industry could support a recovery in the Hang Seng Technology Index [8].