On May 26, the three major indices of the Hong Kong stock market opened slightly higher, with the semiconductor sector continuing to strengthen. In terms of individual stocks, Wuyi Shijie rose over 18%, Lenovo Group rose over 15%, HUA HONG SEMI rose over 12%, ASMPT rose over 11%, and several stocks including SMIC, Zhaoyi Innovation, and Jiantao Jiceng had significant gains. Among them, HUA HONG SEMI and Zhaoyi Innovation reached new historical highs. In terms of popular ETFs, the Hong Kong Stock Connect Information Technology ETF from China Merchants (526050) experienced fluctuations and surged in the morning session, rising over 1% as of the time of writing, strongly aiming for a third consecutive day of gains.
The fundamental driving force behind this round of market performance comes from breakthroughs in industrial technology. Huawei recently announced that it has designed and mass-produced 381 chips adhering to the &#34;Tao (τ) Law&#34; over the past six years. It is expected that by 2031, the transistor density of high-end chips based on this law will be equivalent to the 1.4-nanometer process level.
China Merchants Securities analysis pointed out that the core of the &#34;Tao (τ) Law&#34; lies in logical folding and 3D folding, relying on multi-layer chip vertical stacking and hybrid bonding processes, which will systematically drive the demand for copper plating, CMP, hybrid bonding, and other equipment and consumables. Currently, SMIC and HUA HONG SEMI are experiencing supply shortages, and the supply-demand gap for advanced processes continues to exist. In the long term, healthy growth in domestic demand will accelerate capacity expansion. Huawei's commercial verification brings incremental demand for advanced packaging, with a focus on TSV etching, CMP, and other equipment.
In addition to the industrial technology logic, the index level is also experiencing institutional catalysts. Last Friday, the Hang Seng Index Company announced the results of its quarterly review, in which the Hang Seng Technology Index included two domestic AI large model leaders, Zhipu and MiniMax, for the first time. This is also the first time since the launch of the Hang Seng Technology Index in 2020 that it has included companies with a purely &#34;model-as-a-service&#34; business model. The inclusion of Zhipu and MiniMax marks the index's achievement of full industrial chain coverage from underlying computing power (semiconductors) → model layer (large models) → application layer (AI + consumer/business services), upgrading the index structure from &#34;Internet + software&#34; to &#34;AI native.&#34;
In terms of funding, Bloomberg Industry Research estimates that Zhipu may attract between 51 billion to 92 billion yuan in southbound capital inflows, while MiniMax could attract as much as 47 billion yuan. Morgan Stanley predicts that the combined weight of the two companies in the Hang Seng Technology Index will be about 5%-7%, potentially bringing in passive incremental funds of 1.25 billion to 1.75 billion USD. Goldman Sachs also pointed out that this adjustment has cleared obstacles for them to obtain mainland investment qualifications through the Shanghai-Shenzhen-Hong Kong Stock Connect mechanism.
Data shows that the Hong Kong Stock Connect Information Technology ETF from China Merchants (526050) tracks the CSI Hong Kong Stock Connect Information Technology Comprehensive Index, which is more concentrated in the AI industry chain compared to the Hang Seng Technology Index. This index focuses on the three major fields of Hong Kong stocks: &#34;semiconductors + electronics + computer software,&#34; with hardware accounting for as much as 70% and software accounting for 30%. Compared to other Hong Kong stock technology indices, its hard technology attributes are more pure.
According to Wind data, as of April 30, 2026, the index has accumulated a growth rate of 74.58% over the past three years, outperforming the performance of the National Securities Hong Kong Stock Connect Technology Index, Hang Seng Technology Index, and Hong Kong Stock Connect Internet Index during the same period, showing higher elasticity

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Huawei announced its "Tao Law" technological breakthrough, driving the Hong Kong stock semiconductor sector up, with HUA HONG SEMI rising over 12% to reach a historical high. Analysts pointed out that this law will enhance chip transistor density, boosting demand for related equipment. The Hang Seng Tech Index has for the first time included AI large model companies Zhipu and MiniMax, which is expected to attract a large inflow of southbound funds, marking an upgrade of the index structure to "AI native."

同壁财经

HUA HONG SEMI

First Trust Nasdaq Food & Semicon

Hua Hong

51WORLD

LENOVO GROUP

Lenovo Group

ASMPT

SMIC

GIGADEVICE

KB LAMINATES

China Merchants CSI HK Connect Information Technology Composite ETF

CMSC

Hang Seng TECH Index

KNOWLEDGE ATLAS

MINIMAX-W

Morgan Stanley

Goldman Sachs

LENOVO GROUP-R

SMIC HK SDR 5to1

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Huawei's "Tao Law" breaks the process ceiling, HUA HONG SEMI surges over 12% to reach a historic high