Core Viewpoint - The Hong Kong stock market is experiencing a pullback, but there is a counter-trend inflow of funds, particularly into the Hong Kong Technology ETF (159751), which saw a net subscription of 10 million units. The market is expected to continue its upward trend due to strong overall profitability and the scarcity of assets in sectors like the internet, new consumption, and innovative pharmaceuticals, alongside the anticipated interest rate cut by the Federal Reserve in December [1]. Group 1 - The Hong Kong Technology ETF (159751) closely tracks the CSI Hong Kong Stock Connect Technology Index, which selects 50 large-cap, high R&D investment, and high revenue growth technology companies to reflect the overall performance of technology leaders in the Hong Kong Stock Connect [1]. - As of December 3, 2025, the CSI Hong Kong Stock Connect Technology Index (931573) shows mixed performance among its constituent stocks, with Huahong Semiconductor (01347) leading with a 2.40% increase, followed by Gao Wei Electronics (01415) at 1.81%, and BYD Electronics (00285) at 1.28% [1]. - The overall valuation of the Hong Kong stock market remains low despite several months of increases, indicating a high long-term allocation cost-performance ratio [1]. Group 2 - As of November 28, 2025, the top ten weighted stocks in the CSI Hong Kong Stock Connect Technology Index (931573) include Alibaba-W (09988), Tencent Holdings (00700), and SMIC (00981), with these ten stocks accounting for 67.26% of the index [2].

Core Viewpoint - The Hong Kong technology sector is experiencing a strong rally, driven by multiple favorable factors including increased expectations for Federal Reserve interest rate cuts and improved market liquidity, alongside significant revenue growth in Alibaba's cloud business and a resurgence in AI focus [1]. Group 1: Market Performance - As of November 27, 2025, the CSI Hong Kong Stock Connect Technology Index (931573) has seen a strong increase, with notable gains in constituent stocks such as Huahong Semiconductor (up 5.36%), Kangfang Biotech (up 4.89%), and Li Auto (up 3.87%) [1]. - The Hong Kong Technology ETF (159751) has risen by 0.73%, marking its fourth consecutive increase, with the latest price reported at 1.1 HKD [1]. Group 2: Influencing Factors - The recent rally in the Hong Kong technology sector is attributed to the anticipated easing of monetary policy by the Federal Reserve, which is expected to enhance liquidity in the market [1]. - The combination of the Federal Reserve's halt on balance sheet reduction and the relaxation of SLR regulations is expected to limit liquidity pressure in the medium term [1]. Group 3: Index Composition - The CSI Hong Kong Stock Connect Technology Index comprises 50 large-cap technology companies with high R&D investment and revenue growth, reflecting the overall performance of leading technology stocks within the Hong Kong Stock Connect [1]. - As of October 31, 2025, the top ten weighted stocks in the index include Alibaba-W, Tencent Holdings, and SMIC, collectively accounting for 66.81% of the index [2].

Group 1 - Recent focus on the unlocking of restricted shares in the Hong Kong stock market, with significant declines observed in stock prices, such as a drop of 8.75% for CATL's H-shares [1] - Upcoming unlocks for companies including Sanhua Intelligent Control and Hengrui Medicine, with Hai Tian Flavor Industry scheduled for December, potentially exerting pressure on stock prices [1] - The Hang Seng Technology Index has experienced a correction of over 18% since its peak after the National Day holiday, indicating a broader market trend [1] Group 2 - Continuous inflow of funds into the Hang Seng Technology/ Hong Kong Technology/ Hong Kong Stock Connect Internet sectors, with the Hong Kong Technology ETF (159751) seeing a net inflow of 50.63 million yuan over four days [1] - The average daily net inflow for the Hong Kong Technology ETF reached 12.66 million yuan, highlighting investor interest [1] - Institutional investors are expected to have reduced pressure for profit-taking in November and December, leading to a neutral upward expectation for the index despite economic meeting forecasts [1] Group 3 - The CSI Hong Kong Stock Connect Technology Index (931573) includes top-weighted stocks such as Alibaba, Tencent, and SMIC, with the top ten stocks accounting for 66.81% of the index [2]

Market Performance - The Hang Seng Index closed up by 0.72%, while the Hang Seng Tech Index increased by 0.48% [1] - The Hong Kong Tech ETF (159751) rose by 0.43%, and the Hang Seng Hong Kong Stock Connect ETF (159318) gained 0.71% [1] Sector Performance - Water and marine transportation sectors showed the highest gains [1] - Biotechnology and pharmaceutical sectors experienced the largest declines [1] Individual Stock Movements - Base Champion Group surged over 110% [1] - Postal Savings Bank (601658) increased by 4.59%, China Hongqiao rose by 4.48%, Sands China Limited gained 4.4%, and Meituan-W was up by 4.06% [1] - Shandong High Holding fell by 11.28%, and Chalco International (601068) dropped by 13.23% [1] - Tianjin Chuangye Environmental Protection (600874) saw a significant increase of 24.17%, while Qin Port Co. (601326) rose by 12.94% [1] - Pop Mart International fell by over 9% [1]

Core Viewpoint - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 0.94% and the Hang Seng Tech Index dropping by 1.41% [1] Market Performance - The Hong Kong Technology ETF (159751) decreased by 1.95% - The Hang Seng Hong Kong Stock Connect ETF (159318) fell by 1.34% [1] Sector Performance - Industrial group enterprises, hotels, and resort REITs showed strong gains - The automotive and life sciences tools sectors faced significant declines [1] Individual Stock Movements - Base Champion Group surged over 83% - Lao Pu Gold dropped by 8.21% - Mongol Mining fell by 9.45% - China Aluminum International (601068) increased by 30.52% - Yaojie Ankang-B rose by 11.18% [1]

Group 1 - The technology sector is experiencing a pullback, but it is expected to remain a main focus until the end of the year due to its strong correlation with indices and risk appetite, particularly in AI [1] - There is a potential return of active funds that had previously exited the market, as well as institutional demands for net asset value and rankings before the assessment period at the end of November and December [1] - Market capitalization style may slightly favor small and mid-cap stocks, as many absolute return institutions are expected to operate conservatively in the next two months, limiting the market's ability to exceed a trading volume of 3 trillion [1] Group 2 - The domestic AI supply chain, AI applications, and Hong Kong internet stocks are viewed positively, especially during the performance gap in November and December, where focus will shift to economic policy expectations for December and next year's industry outlook [2] - The domestic AI supply chain is expected to have more visibility and potential for earnings upgrades compared to overseas chains, attracting institutions that previously missed out on overseas computing power [2] - In the Hong Kong tech sector, low valuations and the need for institutions to lock in profits will drive interest, especially as the market anticipates upward index movements and faces selling pressure from broad-based ETFs [2] Group 3 - As of October 22, 2025, the CSI Hong Kong Stock Connect Technology Index shows mixed performance among its constituent stocks, with notable gains from China National Pharmaceutical (4.27%) and Semiconductor Manufacturing International Corporation (0.88%) [3] - The CSI Hong Kong Stock Connect Technology Index consists of 50 large-cap, high R&D investment, and high revenue growth technology companies, reflecting the overall performance of tech leaders within the Hong Kong Stock Connect [3] - The top ten weighted stocks in the CSI Hong Kong Stock Connect Technology Index account for 66.5% of the index, including major players like Alibaba, Tencent, and Xiaomi [3]

Group 1 - The Hong Kong stock market experienced a significant decline, particularly in the technology sector, which fell nearly 4%, with the Hang Seng Index breaking the support level of 25,700 [1] - The decline is attributed to the risk exposure of U.S. regional banks, but its direct impact on Hong Kong stocks is limited. The resulting decrease in U.S. Treasury yields and potential Federal Reserve rate cuts may be beneficial [1] - The market correction is seen as a result of excessive prior gains, with tariffs also contributing to a suppression of risk appetite [1] Group 2 - In the trading session, only two Hong Kong stock ETFs experienced redemptions, with one related to negative news about two automotive companies. The remaining ETFs saw net inflows, with 13 products collectively gaining over 1.256 billion shares [2] - The Hong Kong technology ETF received significant attention, with a net subscription of 84.85 million shares, indicating strong investor interest despite the market downturn [3] Group 3 - Long-term investors are advised to view the current market adjustment as a buying opportunity, particularly in leading technology and innovative pharmaceutical stocks, which have seen substantial corrections [3] - The copper-to-oil ratio is highlighted as a potential indicator of market trends, with a higher ratio suggesting stronger economic growth and lower inflation, serving as a predictive tool for market movements [3]

Market Overview - On September 30, A-shares saw all three major indices rise, with the Shanghai Composite Index up by 0.52%, the Shenzhen Component Index up by 0.35%, and the ChiNext Index remaining unchanged [1] - The STAR 100 Index led the gains with an increase of 2.77%, while the total number of stocks rising in the market reached 2,660 [1] - Hong Kong's main indices also experienced collective gains, with the Hang Seng Tech Index rising by 2.24% [1] ETF Market Activity - The ETF market showed a net inflow of 222.13 billion RMB on September 30, with all major categories of ETFs experiencing net inflows [7] - Bond ETFs, cross-border ETFs, and stock ETFs were the main contributors to the inflow, with net inflows of 92.07 billion RMB, 65.23 billion RMB, and 47.24 billion RMB respectively [7] - Among stock ETFs, thematic and industry ETFs saw significant inflows of 53.17 billion RMB and 41.06 billion RMB, while broad-based stock ETFs experienced a net outflow of 47.68 billion RMB [8] Sector Performance - In terms of sector performance, non-ferrous metals (3.22%), defense and military industry (2.59%), and real estate (2.12%) were the top gainers, while telecommunications (-1.83%), non-bank financials (-1.14%), and comprehensive sectors (-1.06%) faced declines [6] - The chemical sector saw a strong performance on September 30, with a notable increase in the chemical ETF (159870) by 1.68% and a net subscription of 420 million RMB [11] Capital Flow Insights - The top sectors for capital inflow on September 30 included the CSI A500 (+3.09 billion RMB), battery storage (+2.47 billion RMB), and semiconductor chips (+1.69 billion RMB) [9] - Conversely, the CSI 50 index experienced the largest capital outflow of 2.03 billion RMB [9] Notable Developments - The non-ferrous metals sector is expected to benefit from a recent government initiative aimed at promoting the consumption of high-end aluminum, copper, and magnesium alloys, alongside a tightening global copper supply [11] - In the tech sector, the release of the DeepSeek-V3.2-Exp model is seen as a significant advancement, reducing costs for developers by over 50% [12]

Core Points - The Hong Kong stock market closed with the Hang Seng Index rising by 1.61% and the Hang Seng Tech Index increasing by 3.36% [1] - The Hong Kong Tech ETF (159751) rose by 3.17%, while the Hang Seng Hong Kong Stock Connect ETF (159318) increased by 1.11% [1] Sector Performance - Semiconductor products and equipment, as well as metals and mining sectors, showed significant gains [1] - Conversely, passenger airlines and construction products sectors experienced notable declines [1] Individual Stock Movements - Notable gainers included Zijin Mining International, which rose by 14.01%, and SMIC, which increased by 12.7% [1] - Other significant gainers included Kelun-Botai Bio (+9.44%), Lens Technology (+9.19%), Kuaishou-W (+8.57%), and WuXi AppTec (+7.15%) [1] - Decliners included NetDragon, which fell by 6.14%, and Haotian International Construction Investment, which dropped by 11.11% [1] - Dazhong Public Utilities saw a substantial increase of 18.35%, while MIRXES-B rose by 17.1% [1]

Market Overview - The Hang Seng Index closed down 0.18%, while the Hang Seng Tech Index rose by 1.04% [1] - The Hong Kong Tech ETF (159751) increased by 0.65%, and the Hang Seng Hong Kong Stock Connect ETF (159318) decreased by 0.14% [1] Sector Performance - The telecommunications, semiconductor products, and equipment sectors showed strong gains [1] - The diversified REITs and passenger airline sectors experienced significant declines [1] Notable Stocks - Hong Kong Broadband surged over 54% [1] - Hua Hong Semiconductor rose by 10.31% [1] - Sanhua Intelligent Control increased by 10.15% [1] - Horizon Robotics-W gained 6.79% [1] - SMIC (Semiconductor Manufacturing International Corporation) rose by 6.65% [1] - Hengrui Medicine increased by 5.36% [1] - China Duty Free Group rose by 5.3% [1] - Baidu Group-SW increased by 4.12% [1] - Baize Medical fell by 16.17% [1] - Brainstorm Cell Therapeutics-B dropped by 16.7% [1] - Yihua Tong surged by 33.42% [1]