--- title: "After experiencing a downward trend in May, Hong Kong stocks finally welcome a reversal! ETF investment, how to seize the market trend?" type: "News" locale: "en" url: "https://longbridge.com/en/news/279515105.md" description: "After experiencing five months of decline, Hong Kong stocks have recently welcomed a V-shaped reversal, especially with a significant rebound in the Hang Seng Technology Index. Sub-sectors in technology such as automotive, chips, internet, and innovative pharmaceuticals have performed strongly, attracting a return of funds. Professional institutions are optimistic about the future of Hong Kong tech stocks, believing that the adjustments have been sufficient and valuations are attractive. The Hong Kong Stock Connect ETF has become the focus of investors due to its support for T+0 trading and a rich variety of industry themes. The AI industry chain ETF matrix is a key component of the investment toolbox, covering areas such as computing power, large models, and applications" datetime: "2026-03-18T01:29:08.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279515105.md) - [en](https://longbridge.com/en/news/279515105.md) - [zh-HK](https://longbridge.com/zh-HK/news/279515105.md) --- # After experiencing a downward trend in May, Hong Kong stocks finally welcome a reversal! ETF investment, how to seize the market trend? On March 17, the Hong Kong stock market continued to strengthen overall. The V-shaped reversal of the Hong Kong stock market is the core focus of the current capital market. After a five-month-long correction, the Hong Kong stock market, especially the Hang Seng Technology Index, has shown a significant rebound since last week. A closer look reveals that sub-sectors such as Hong Kong automotive, Hong Kong chips, Hong Kong internet, and Hong Kong innovative drugs have performed particularly well. The core logic behind professional research institutions and individuals being optimistic about the future of Hong Kong technology stocks includes sufficient adjustments, strong capital inflows, and significantly improved valuation attractiveness. Recently, the tangible V-shaped reversal market has made many Hong Kong Stock Connect ETFs quickly become "hot cakes" in the eyes of investors. These Hong Kong Stock Connect ETFs generally support T+0 trading, enhancing investment efficiency; they feature a rich variety of industry themes and a complete range of ETF categories; and they focus on scarce layouts, with many being the "first in the entire market" or unique niche products. **A Closer Look at Hong Kong Technology: Focus on AI,** **Computing Power, Large Models, Applications, and Full Coverage** The core of Hong Kong technology is AI, with an ETF matrix covering the AI industry chain across three major segments: computing power, large models, and applications, making it a top priority in the Hong Kong investment toolbox. **Hong Kong Information Technology ETF (159131)** precisely positions itself within the Hong Kong chip industry chain and is the first ETF in the market to track the CSI Hong Kong Stock Connect Information Technology Composite Index (referred to as "Hong Kong Stock Connect Information C"); Its underlying index constituents include 45 hard technology companies in Hong Kong, such as SMIC and Hua Hong Semiconductor, with constituents primarily composed of 70% hardware and 30% software. This index does not include large-cap internet companies like Alibaba, Tencent, and Meituan, providing sharper focus. Following the AI industry chain downward, the AI large models and application end, which will attract more market attention by 2026, presents opportunities for products like Hong Kong Internet ETF (513770), Hong Kong Stock Connect Automotive ETF Hwabao (520780), Hong Kong Stock Connect Innovative Drug ETF (520880), and Hong Kong Stock Connect Medical ETF Hwabao (159137). **Hong Kong Internet ETF (513770)** is an ETF product heavily invested in leading Hong Kong internet companies. Its underlying index, the CSI Hong Kong Stock Connect Internet Index, includes the top ten weighted stocks such as Alibaba-W, Tencent Holdings, Xiaomi Group-W, Kuaishou-W, and Bilibili-W, which are AI cloud computing, large models, and various AI application companies. As of March 16, 2026, the latest fund size of Hong Kong Internet ETF (513770) exceeds 11.9 billion yuan, with excellent liquidity. The **Hong Kong Stock Connect Innovative Drug ETF (520880)**, which focuses 100% on innovative drugs, is the first product in the market to track the Hang Seng Hong Kong Stock Connect Innovative Drug Selected Index. Recently, this powerful index completed a rebalancing, increasing the number of constituent stocks to 50, with 13 new constituent stocks coming from AI pharmaceuticals Gene editing, small molecules, dual antibodies, and other popular cutting-edge fields. The **Hong Kong Stock Connect Automotive ETF Hwabao (520780)** heavily invests in scarce leading automotive companies in Hong Kong stocks, tracking the CSI Hong Kong Stock Connect Automotive Industry Thematic Index. The index constituents include industry-leading new force car companies such as XPeng, BYD, Geely, and Li Auto. The Hong Kong Stock Connect automotive sector has also been a standout in the recent rebound of Hong Kong stocks, showing significant strength among the technology sub-sectors. The **Hong Kong Stock Connect Medical ETF Hwabao (159137)** tracks the CSI Hong Kong Stock Connect Medical Thematic Index, covering the four major areas of the Hong Kong medical field: CXO, medical business and services, medical devices, and biopharmaceuticals. Over 80% of the weight is concentrated in leading companies in CXO, internet healthcare, and high-end medical devices, with "Hong Kong exclusive" constituents accounting for more than 85% of the weight. **Supports T+0, higher investment efficiency** **Wall Street's "big short"** **rarely bullish, funds accelerating** **into Hong Kong** Due to the support for T+0 trading, these Hong Kong Stock Connect ETFs have strong liquidity and high investment efficiency, especially advantageous in cross-border and industry-themed products. Recently, the Hong Kong technology sector has frequently received external positive boosts. On one hand, there are reports that Middle Eastern investors who relocated years ago are "returning to Hong Kong"; on the other hand, Wall Street's "big short" Michael Burry expressed optimism about the Hang Seng Technology Index, stating that its valuation is extremely disconnected from fundamentals, presenting a historic investment opportunity. Industrial Securities stated that the overseas liquidity easing pattern has not changed, and the Hong Kong stock market is expected to welcome opportunities for foreign capital inflows in 2026. The liquidity of the Hong Kong stock market continues to improve, and in the context of AI technological transformation, technology assets are expected to become a core direction for benefiting. In 2025, southbound funds recorded a net inflow of HKD 1,404.844 billion into Hong Kong stocks. Entering 2026, southbound funds continued to increase their positions in the Hong Kong stock market. Wind data shows that as of March 17, 2026, the cumulative net inflow of southbound funds into Hong Kong stocks since the beginning of 2026 reached HKD 191.161 billion. (Source: Hwabao Fund) **Special Reminder:** Recent market fluctuations may be significant, and short-term price movements do not indicate future performance. Investors must rationally invest based on their own financial situation and risk tolerance, paying close attention to position and risk management. **Data Source:** Shanghai and Shenzhen Stock Exchanges, China Securities Index Company, S&P Dow Jones Indices, Wind. The underlying index of the Hong Kong Stock Connect Low Volatility Dividend ETF Hwabao is the S&P Hong Kong Stock Connect Low Volatility Dividend Index, with a base date of January 31, 2011, and a publication date of February 20, 2017. The S&P Hong Kong Stock Connect Low Volatility Dividend Index's performance over the past five complete years (2021-2025) was: 6.96%, -4.07%, -1.55%, 24.81%, 19.71%. The composition of the index constituents is adjusted in accordance with the index compilation rules, and the past performance and back-tested results of the index do not guarantee future performance, nor do they constitute a guarantee of the fund's future performance The market has risks, and investment must be cautious! The index constituent stocks are for display only, and the descriptions of individual stocks do not constitute any form of investment advice, nor do they represent the holdings and trading trends of any funds managed by the manager. **Risk Warning:** The above products are issued and managed by Hwabao Fund, and the distribution institutions do not bear the investment, redemption, and risk management responsibilities of the products. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Information Summary," and other legal documents of the fund to understand the risk-return characteristics of the fund and choose products that match their risk tolerance. The Hong Kong Stock Internet ETF and its connecting fund passively track the CSI Hong Kong Stock Connect Internet Index, with a base date of December 30, 2016, and published on January 11, 2021; the Hong Kong Stock Connect Innovative Drug ETF and its connecting fund passively track the Hang Seng Hong Kong Stock Connect Innovative Drug Selection Index, with a base date of December 31, 2020, and published on July 17, 2023; the Hong Kong Stock Information Technology ETF passively tracks the CSI Hong Kong Stock Connect Information Technology Composite Index, with a base date of November 14, 2014, and published on June 23, 2017; the Hong Kong Large Cap 30 ETF passively tracks the Hang Seng China (Hong Kong Listed) 30 Index, with a base date of January 3, 2000, and published on January 20, 2003; the Hong Kong Stock Connect Automotive ETF Hwabao passively tracks the CSI Hong Kong Stock Connect Automotive Industry Theme Index, with a base date of December 30, 2016, and published on July 21, 2022; the Hong Kong Stock Connect Dividend Low Volatility ETF Hwabao and its connecting fund passively track the S&P Hong Kong Stock Connect Low Volatility Dividend Index, with a base date of January 31, 2011, and published on February 20, 2017; the Hong Kong Small and Medium LOF Target Index is the S&P Hong Kong Listed China Small and Mid-Cap Selection Index, with a base date of December 16, 2005, and published on December 16, 2005; the Value Fund LOF Target Index is the S&P Shanghai-Hong Kong-Shenzhen China Enhanced Value Index, with a base date of January 21, 2011, and published on April 3, 2017; the Hwabao CSI Shanghai-Hong Kong-Shenzhen New Consumption Index Fund's target index is the CSI Shanghai-Hong Kong-Shenzhen New Consumption Index, with a base date of December 31, 2014, and published on April 7, 2021. The above funds mainly invest in the constituent stocks and alternative constituent stocks of the target index. The composition of the index constituent stocks is adjusted in a timely manner according to the index compilation rules. Index backtesting data and the past performance of the fund do not indicate its future performance. \*\*According to the assessment of the fund manager, the risk levels of the Hong Kong Stock Internet ETF and its connecting fund, the Hong Kong Stock Connect Innovative Drug ETF and its connecting fund, the Hong Kong Stock Information Technology ETF, the Hong Kong Large Cap 30 ETF, the Hong Kong Stock Connect Automotive ETF Hwabao, the Hong Kong Stock Connect Medical ETF Hwabao, and the Hwabao CSI Shanghai-Hong Kong-Shenzhen New Consumption Index Fund are all R4 - medium to high risk, suitable for aggressive (C4) investors and above. The risk levels of the other funds displayed in the above content are all R3 - medium risk, suitable for balanced (C3) investors and above. Please refer to the sales institution for suitability matching opinions \*\*Sales institutions (including direct sales institutions of fund managers and other sales institutions) conduct risk assessments of funds in accordance with relevant laws and regulations. Investors should pay attention to the suitability opinions issued by sales institutions in a timely manner and take their matching results as the standard. The opinions on suitability from various sales institutions may not necessarily be consistent, and the risk level evaluation results of fund products issued by fund sales institutions must not be lower than the risk level evaluation results made by fund managers. There may be differences in the risk-return characteristics and risk levels of funds in the fund contract due to different considerations. Investors should understand the risk-return situation of the fund and carefully choose fund products based on their investment objectives, time horizon, investment experience, and risk tolerance, and bear the risks themselves. The registration of the above funds by the China Securities Regulatory Commission does not indicate a substantive judgment or guarantee regarding the investment value, market prospects, and returns of the above funds.**The past performance of the fund and its net value do not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the above fund. Funds carry risks, and investments should be made cautiously! For details on fees, please refer to the legal documents of each fund.** ### Related Stocks - [159558.CN](https://longbridge.com/en/quote/159558.CN.md) - [159995.CN](https://longbridge.com/en/quote/159995.CN.md) - [588780.CN](https://longbridge.com/en/quote/588780.CN.md) - [513180.CN](https://longbridge.com/en/quote/513180.CN.md) - [159325.CN](https://longbridge.com/en/quote/159325.CN.md) - [562820.CN](https://longbridge.com/en/quote/562820.CN.md) - [159740.CN](https://longbridge.com/en/quote/159740.CN.md) - [159516.CN](https://longbridge.com/en/quote/159516.CN.md) - [512760.CN](https://longbridge.com/en/quote/512760.CN.md) - [588200.CN](https://longbridge.com/en/quote/588200.CN.md) - [561980.CN](https://longbridge.com/en/quote/561980.CN.md) - [513120.CN](https://longbridge.com/en/quote/513120.CN.md) - [159742.CN](https://longbridge.com/en/quote/159742.CN.md) - [512480.CN](https://longbridge.com/en/quote/512480.CN.md) - [159920.CN](https://longbridge.com/en/quote/159920.CN.md) - [588170.CN](https://longbridge.com/en/quote/588170.CN.md) - [515030.CN](https://longbridge.com/en/quote/515030.CN.md) - [516380.CN](https://longbridge.com/en/quote/516380.CN.md) - [03088.HK](https://longbridge.com/en/quote/03088.HK.md) - [STECH.HK](https://longbridge.com/en/quote/STECH.HK.md) - [00HSI.HK](https://longbridge.com/en/quote/00HSI.HK.md) - [03033.HK](https://longbridge.com/en/quote/03033.HK.md) - [520920.CN](https://longbridge.com/en/quote/520920.CN.md) - [513130.CN](https://longbridge.com/en/quote/513130.CN.md) ## Related News & Research - [QuInAs links device physics to AI system performance using ULTRARAM](https://longbridge.com/en/news/282312822.md) - [SEMI Reports Global Semiconductor Equipment Billings Reached $135 Billion in 2025, Up 15% Year-on-Year](https://longbridge.com/en/news/281936657.md) - [BYD teams up with one of the world’s largest fast food chains to offer 9 minute EV charging](https://longbridge.com/en/news/282250468.md) - [BYD Expands Denza Team in Europe With Rival Hires](https://longbridge.com/en/news/282127040.md) - [BYD to Set Up Sales Dealership in Canada](https://longbridge.com/en/news/282130573.md)