Core Viewpoint - The Hong Kong stock market's technology sector is no longer synonymous with traditional "internet platforms," but is redefined as a high-growth track driven by AI and "new productive forces" [1] Demand Side - The user base for generative AI in China is experiencing explosive growth, with over 90% of users preferring domestic large models, indicating significant market opportunities for local tech companies [1] Supply Side - Leading technology companies in the Hong Kong stock market cover popular fields such as "software and hardware + new consumption + innovative pharmaceuticals + new energy vehicles," positioning them as both users of AI technology and core builders of industrial infrastructure [1] - This upgrade in the industrial core provides a solid foundation for long-term growth in the Hong Kong technology sector, making it a key focus for investment in the fourth quarter [1] Investment Strategy - For ordinary investors, direct investment in individual stocks may be challenging and risky; therefore, participating through related ETFs is recommended [1] - The Hong Kong Stock Connect Technology ETF closely tracks the National Index of Hong Kong Stock Connect Technology, selecting 30 large-cap, high R&D investment technology leaders, with the top ten weighted stocks accounting for 7%, including giants like Tencent and Alibaba, as well as emerging players like Li Auto and BeiGene [1]

Group 1 - Southbound capital has become an important incremental source for the Hong Kong stock market by 2025, with net purchases exceeding 1.09 trillion HKD as of September 17, setting a record since the establishment of the mutual market access mechanism in 2014 [1] - During the week of September 8 to 12, southbound capital net purchases reached 608.22 billion HKD, an increase of 84.0% compared to the previous week, marking the highest weekly net purchase since mid-April [1] - Southbound capital shows strong interest in AI-related core assets, with leading internet stocks being the primary targets for increased investment [1] Group 2 - Despite a short-term pullback in the Hong Kong technology sector following the Federal Reserve's interest rate cut, the sector remains attractive from a medium to long-term perspective due to continuous breakthroughs in AI technology and applications, sustained inflow of southbound capital, and reasonable valuation levels [2] - The Hong Kong Stock Connect Technology ETF (159101) focuses on major internet giants like Tencent and Alibaba, as well as emerging players like Li Auto and BeiGene, covering popular sectors such as "software and hardware + new consumption + innovative pharmaceuticals + new energy vehicles" [2] - The Hang Seng Technology Index ETF (513180) supports T+0 trading and includes 30 leading Hong Kong tech stocks, with a deep focus on the AI industry chain, benefiting from the expected interest rate cuts and continued inflow of southbound capital [2]

Group 1 - The Hang Seng Index rose over 1% during the trading session, reaching a peak of 26,296.6 points, marking a nearly four-year high following the previous day's performance [1] - Other key indices in the Hong Kong stock market also saw collective gains, with the Hang Seng Tech Index increasing nearly 2% and the Hang Seng China Enterprises Index rising over 1% [1] - Southbound capital has seen a continuous net inflow for eight consecutive days, with a cumulative net purchase amount reaching a record high of 10,389.4 million HKD year-to-date [1] Group 2 - Recent trends indicate that Southbound capital is primarily flowing into sectors such as retail, automotive, consumer services, non-ferrous metals, and pharmaceuticals [1] - Changjiang Securities noted that the sustained inflow of Southbound capital is enhancing marginal pricing power, and if domestic low-interest rates persist alongside rising weights in the ERP model, more funds may be allocated to the Hong Kong stock market [1] - The potential for further increases in the Hong Kong stock market is supported by the transmission from broad monetary policy to broad credit, along with possible interest rate cuts in the U.S. that could improve global liquidity, as well as performance realization in the AI industry [1] Group 3 - Relevant ETFs include the Hang Seng Tech Index ETF (513180), which focuses on leading technology AI companies, new energy vehicle manufacturers, and chipmakers [2] - The Hang Seng Internet ETF (513330) targets leading internet companies in Hong Kong, benefiting from reduced competition [2] - The Hong Kong Stock Connect Medical ETF (520510) has a leading CXO content among all market ETFs and is expected to take over the innovation drug main line [2]