Core Insights - The technology sector has become a significant component of the A-share market, accounting for over 25% of the total market capitalization [1] - Public funds are increasingly focusing on technology investments, particularly in areas like artificial intelligence (AI), humanoid robots, and innovative pharmaceuticals, indicating a shift in investment strategies and methodologies [1][3] - The rise of technology investments is attributed to China's long-term economic transformation, emphasis on technological innovation, and the capital market's role in supporting the real economy [3] Investment Trends - Over 90% of newly listed companies in recent years are technology-related or have high technological content, with the number of technology companies in the top 50 by market capitalization increasing from 18 to 24 since the end of the 13th Five-Year Plan [1] - The market is witnessing a transformation in investment philosophy, with long-term capital, including insurance and pension funds, reassessing the long-term value of technology assets [3][4] - Fund managers are adapting to the complexities of technology investments, which require a shift from traditional linear thinking to a more systemic approach [1][5] Research and Methodology - The investment approach for technology sectors necessitates a deeper understanding of industry logic and performance expectations, with a focus on proactive positioning and foresight [6][7] - Fund companies are enhancing their research capabilities by building specialized teams and adopting innovative methodologies to address the unique challenges of technology investments [7][8] - The need for interdisciplinary knowledge is emphasized, with fund managers requiring a blend of financial acumen and technical expertise to navigate the technology landscape effectively [6][7] Product Strategies - Fund companies are diversifying their product offerings in technology investments, balancing between active equity products and passive index funds to capture various market opportunities [8][9] - The focus on technology themes aligns with national strategic development directions, leading to the creation of specialized funds targeting sectors like AI, semiconductors, and renewable energy [8][9] - The outlook for technology investments remains optimistic, with expectations of strong performance in sectors such as AI, semiconductors, and biomedicine [9]

Core Viewpoint - The Hong Kong stock market has shown strong growth in 2023, with the Hang Seng Index increasing by 20% as of June 30, driven by the return of overseas capital and increased investment from mainland China [1] Group 1: Market Overview - The Hong Kong market is expected to undergo asset revaluation, particularly benefiting the technology sector, which is considered a core asset [1] - The launch of the FTSE China A50 Technology ETF by Franklin Templeton aims to provide investors with an efficient tool to invest in the Hong Kong technology sector [1] Group 2: Index Composition and Performance - The CSI Hong Kong Stock Connect Technology Index, which the ETF tracks, includes 50 large-cap technology leaders with high R&D investment and revenue growth [1] - As of June 30, 2025, the index's constituents primarily cover emerging technology sectors such as automotive, electronics, media, pharmaceuticals, and computers, accounting for 81.2% of the index [2] Group 3: Financial Performance - The internet and automotive sectors within the Hong Kong stock market have shown a revenue growth rate exceeding 10% year-on-year, indicating strong profitability [2] - The technology sector demonstrates significant long-term growth potential, supported by high R&D investment, which has consistently exceeded 7% of revenue over the past three years [2] Group 4: Valuation and Investment Opportunities - The Hong Kong Stock Connect Technology Index is currently undervalued, with a PE ratio of 21.46, placing it in the 4.98% percentile over the past five years, suggesting substantial room for valuation recovery [3] - The anticipated easing of valuation pressures due to improving global liquidity and expectations of economic recovery in China may accelerate the valuation recovery process for the technology sector [3]