---
title: "Hong Kong non-banking stocks surge, we called it again"
description: "We posted an article titled &#34;Today's Surge in Hong Kong Stocks, an Easily Overlooked Variety&#34; the day before yesterday, mentioning that during the surge in Hong Kong stocks, in terms of elasti"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/29649932.md"
published_at: "2025-05-14T15:44:41.000Z"
author: "[且涨海外投](https://longbridge.com/en/profiles/18577146)"
---

# Hong Kong non-banking stocks surge, we called it again

We posted an article titled "[Today's Surge in Hong Kong Stocks: An Overlooked Sector](https://longportapp.com/topics/29574269?channel=nl29574269&invite-code=)" two days ago, mentioning that during the Hong Kong stock rally, **in terms of volatility, the non-banking financial sector might not underperform popular choices like the Hang Seng Tech Index.**

Today's market action confirmed this again—**the non-banking financial sector continued to outperform the Hang Seng Tech Index. Notably, the Hong Kong non-banking financial ETF closed at 3 PM with a 3.68% gain (the index rose 3.95% at the same time), but Hong Kong stocks continued trading until 4 PM, with the index eventually closing up 4.27%.** This means the non-banking financial ETF is still trading at a discount, and tomorrow it should at least reflect the gains from the 3-4 PM session.

Over the past year, it has held its own against A-share brokerage ETFs and Hong Kong's Hang Seng Tech ETF. My Hong Kong non-banking fund, after several manual investments, is now up 10%.

Beyond the reason I mentioned in my last article—that sectors like securities and insurance, as bull market leaders, perform well when Hong Kong stocks heat up—there might be another factor:

Recently, regulators proposed reforms for public funds, **including linking fund fees to their performance relative to benchmarks.** Many funds use the CSI 300 as a benchmark, which is heavily weighted toward large-cap stocks like banks and insurers.

However, **public funds have historically underallocated to banks and insurers due to their perceived lack of volatility and returns.** But now, to keep up with benchmarks, funds may increase allocations to these underweighted sectors.

Proof? This chart from Guolian Minsheng, titled "\[Chart & Strategy\] Public Fund Underweight Sectors," highlights: **As of the latest quarterly report, public funds underweight banks by 10 percentage points and insurers by 3 percentage points relative to the CSI 300.**

While this data covers A-shares, Hong Kong stocks are likely even more underweight.

Over the past few years, Hong Kong banks have outperformed their A-share counterparts, suggesting growing investor recognition. Insurers have been steadily buying Hong Kong banks. At a recent shareholder meeting, **Ping An highlighted Hong Kong banks' high dividends in a low-rate environment as attractive investments. The Hong Kong bank index recently hit a record high.**

Going forward, investor perceptions of Hong Kong's non-banking sector may also shift. Why should H-shares of the same company trade at a 60% discount to A-shares?

I’m not saying the discount will vanish entirely, but such a large gap seems unreasonable.

(Not investment advice)

$Huatai-PB CSOP Hang Seng Technology ETF(QDII)(513130.SH) $HSTECH ETF(03032.HK) $GF Fund CSI HK Connect Financials(ex Banks) Thematic ETF(513750.SH) $Yinhua CSI All Share Investment Banking & Brokerage ETF(159842.SZ) $HKEX(00388.HK) $AIA(01299.HK)

### Related Stocks

- [STECH.HK - Hang Seng TECH Index](https://longbridge.com/en/quote/STECH.HK.md)
- [07552.HK - XI2CSOPHSTECH](https://longbridge.com/en/quote/07552.HK.md)
- [07226.HK - XL2CSOPHSTECH](https://longbridge.com/en/quote/07226.HK.md)
- [03033.HK - CSOP HS TECH](https://longbridge.com/en/quote/03033.HK.md)
- [513130.CN - Huatai-PB CSOP Hang Seng Technology ETF(QDII)](https://longbridge.com/en/quote/513130.CN.md)
- [513750.CN - GF Fund CSI HK Connect Financials(ex Banks) Thematic ETF](https://longbridge.com/en/quote/513750.CN.md)
- [159842.CN - Yinhua CSI All Share Investment Banking & Brokerage ETF](https://longbridge.com/en/quote/159842.CN.md)
- [00388.HK - HKEX](https://longbridge.com/en/quote/00388.HK.md)
- [80388.HK - HKEX-R](https://longbridge.com/en/quote/80388.HK.md)
- [HKXCY.US - Hong Kong Exchanges and Clearing (HKEX)](https://longbridge.com/en/quote/HKXCY.US.md)

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.