After six consecutive declines, a rebound! Is the Hong Kong stock technology sector entering a bottoming phase?

Today, Hong Kong stocks in the technology sector rebounded collectively. As of 14:30, the Hong Kong Stock Connect Technology Index rose over 3%.

As expected, the reasons are as we mentioned in our post last Friday. Recently, the market has been mainly influenced by sentiment and liquidity, with Hong Kong stocks experiencing six consecutive declines by the end of last week. Last Friday, after the market closed, the Federal Reserve released dovish signals, and some well-known figures in the market responded to concerns about the AI bubble. The new information significantly eased market sentiment, leading to a rapid rebound in the Hong Kong technology sector.

In fact, funds have been "buying more as prices fall," (The Hang Seng Technology ETF saw a net inflow of 8.684 billion yuan in a week, the Hang Seng Internet had a net inflow of 2.512 billion yuan, and the Guozheng Hong Kong Stock Connect Technology had a net inflow of 330 million yuan, data source: Tonghuashun IFinD, data as of 2025.11.20) which conveys recognition of the fundamentals of Hong Kong technology stocks. Of course, it also helps that Hong Kong technology stocks are indeed cheap.

Data source: Wind, data as of 20251118

Looking ahead, the commercialization of generative AI is accelerating, and related Hong Kong stocks such as Alibaba are seeing their elastic space released. At the same time, geopolitical factors are driving chip autonomy, benefiting Hong Kong semiconductor companies from supply chain restructuring. Against the backdrop of improving liquidity in Hong Kong stocks, the long-term upgrading trend of the technology industry provides growth space and is expected to continue to benefit and strengthen.

We tend to believe that the current pessimistic sentiment in Hong Kong stocks has been sufficiently released, gradually entering a layout range, and after stopping the decline, it is expected to return to an upward trend. Investors can gradually position themselves according to their own risk preferences.

However, it should also be noted that the strength of the buying power at the end of the year may not be very strong, and interest rate cuts in December may fluctuate. Everyone should not have overly high expectations for Hong Kong stocks; be a little patient. If further interest rate cuts are implemented next year, we may see larger-scale opportunities in Hong Kong technology stocks.

Investors looking to position themselves in Hong Kong technology stocks at lower levels can pay attention to the Tianhong Guozheng Hong Kong Stock Connect Technology ETF Connect (A: 024885; C: 024885). This index includes major internet companies such as Alibaba, Tencent, and Xiaomi, and does not occupy QDII quotas, making it much more convenient for everyone to invest. You can search for "Tianhong Hong Kong Stock Connect Technology" on Alipay, Tiantian Fund, or JD Finance to invest.

Risk Warning: The views are for reference only and do not constitute investment advice. The market has risks, and investment requires caution. This fund can invest in stocks under the Hong Kong Stock Connect and must bear the unique risks arising from differences in investment environment, investment targets, market systems, and trading rules under the Hong Kong Stock Connect mechanism