$Lion-OCBC Sec HSTECH S(HST.SG)Context: Chinese and Hong Kong tech stocks tracked by the Hang Seng Tech Index have exper…

$Lion-OCBC Sec HSTECH S(HST.SG)

Context: Chinese and Hong Kong tech stocks tracked by the Hang Seng Tech Index have experienced sharp pullbacks, similar to the corrections across global technology equities. This sector pullback has compressed valuations down near 52 week lows, creating an opportunity for investors to DCA. Hang Seng Tech Index holds tech leaders in hardware, software, and e-commerce which are at attractive levels.

My trade: I initiated a new position in the Lion-OCBC Securities Hang Seng TECH ETF (HST.SG) during the recent market correction. I believe in diversification, therefore accumulating units at current levels gives me diversified exposure to top tier Asian tech giants and semiconductor leaders such as Tencent, Alibaba, Meituan, SMIC, Bidu, Xiaomi, BYD which are at attractive entry prices.

Takeaway: Buying high beta technology ETFs during macroeconomic and sector wide corrections offers a better reward to risk profile compared to chasing rallies at market peaks. However, one still needs to monitor for macroeconomic headwinds in China and the potential regulatory shifts that will impact Chinese tech companies.