Group 1: Market Overview - The market is experiencing fluctuations after the Shanghai Composite Index approached 4000 points, with the software sector showing strong performance, particularly in AI corpus, software development, and Hongmeng concepts [1] - The software industry is expected to enter a growth phase, supported by policies promoting domestic software autonomy and AI-driven application prosperity [1] Group 2: Company Performance - Leading software company Kingsoft Office reported a revenue of 1.521 billion yuan in Q3, a year-on-year increase of 25.33%, and a net profit of 431 million yuan, up 35.42% year-on-year, driven by AI product launches and refined market operations [1] - Cybersecurity leader 360 achieved a revenue of 6.068 billion yuan in the first three quarters, an increase of 8.18%, while reducing net losses to 122 million yuan from 579 million yuan last year, marking a reduction of approximately 78.93% [2] Group 3: Policy Support - The 14th Five-Year Plan emphasizes strengthening original innovation and tackling key core technologies, promoting breakthroughs in critical areas such as basic software and integrated circuits, which aligns with the trend of domestic software and hardware localization [3] - The push for software autonomy is expected to increase the importance of domestic software in the context of national technological competition [3] Group 4: AI Innovations - Since 2025, global model innovations have entered a phase of orderly and high-quality development, with improvements in model capabilities and reductions in costs, facilitating rapid application development [4] - The DeepSeek team has introduced innovations in hardware architecture and model design, contributing to cost-effective large-scale training and inference [4] Group 5: Investment Opportunities - The E Fund Software ETF (562930) focuses on core sectors within the software industry, tracking the CSI Software Service Index, which includes leading companies like iFlytek, Kingsoft Office, and 360 [5]

Core Viewpoint - The Hang Seng Technology Index QDII has successfully completed its fundraising, reflecting strong investor confidence in the Hong Kong technology sector, which has shown resilience and significant growth potential despite market fluctuations [1]. Market Performance - As of June 11, the Hang Seng Index and the Hang Seng Technology Index have increased by 21.47% and 22.00% respectively since the beginning of the year, significantly outperforming the A-share market, where the CSI 300 and ChiNext Index have decreased by 1.02% and 3.72% [1]. Policy Support - The Chinese government's "self-reliance in technology" policy continues to strengthen, with increasing support for domestic chip replacement and software independence. Recent initiatives from nine government departments aim to accelerate the transformation and industrialization of technological achievements, particularly in critical areas like semiconductors and intelligent equipment [1]. Industry Developments - Domestic AI technologies, exemplified by DeepSeek, are experiencing breakthrough developments, with the "AI+" trend expected to enhance the profitability of technology companies and serve as a new engine for high-quality economic growth in China. The Hong Kong technology sector stands to benefit directly from the upward cycle of the AI industry [2]. Capital Inflows - Continuous inflows of southbound capital have provided robust liquidity support for the Hong Kong technology sector. As of June 11, net inflows from southbound capital have reached 675.55 billion HKD, setting a historical record for the same period [2]. Investment Opportunities - The Hang Seng Technology Index, comprising 30 leading internet and technology manufacturing companies, offers a unique investment tool for differentiated exposure to Chinese technology assets, with 26 of these companies not listed on the A-share market [2]. Index Competitiveness - The Hang Seng Technology Index features quarterly adjustments and rapid inclusion rules, ensuring that its constituent stocks consistently represent the forefront of industry technology. The index covers both hard and soft technology sectors, aligning with domestic demand stimulation and self-sufficiency goals [3]. Future Outlook - The rise of Chinese technological capabilities is anticipated to be a long-term narrative, with the Hang Seng Technology Index expected to continue thriving in this development process [3].