The second half of 2026 has brought a flurry of opportunities in the Hong Kong stock technology sector. On one hand, Hong Kong-listed internet companies have staged a rebound following earlier adjustments; on the other, A-share hard-tech leaders are accelerating their 'A+H' dual-listing strategies, with their H-shares attracting active allocation from foreign capital since listing. Taking Zhongji Innolight as an example, data from the Korea Securities Depository shows that from its listing on the Hong Kong Stock Exchange on July 30 to August 7, Korean investors net purchased $43.3942 million of the stock, ranking first among Korean investors' net purchases of Hong Kong-listed stocks in the second half of the year, with the net buying amount nearly three times higher than the second-placed stock. Meanwhile, HKEX filings reveal that JPMorgan Chase increased its stake in Zhongji Innolight H-shares by 362,700 shares on August 6, raising its holding ratio from 14.93% to 15.60%. The enthusiasm for Hong Kong tech stocks isn't limited to foreign capital; southbound funds have also resumed their buying momentum recently. Wind data shows that net southbound inflows in July totaled HKD 62.9 billion, a significant increase from HKD 27.1 billion in June.

To help investors position themselves in the Hong Kong stock technology sector, the Fullgoal Hong Kong Stock Connect Technology Hybrid Securities Investment Fund (Class A: 027236; Class C: 027237) officially began its issuance today. The fund will be managed by Zhao Nianshen, a high-performing fund manager with deep expertise in cross-border growth investing, aiming to capture investment opportunities in Hong Kong Stock Connect technology stocks.

Low Valuations and High Dispersion Create a Favorable Climate for Active Management

After a prolonged period of adjustment, valuations in the Hong Kong tech sector have entered a reasonable range, presenting a favorable window for investment. According to Wind data, as of August 12, the Hong Kong Stock Connect Technology Index had a P/E ratio (TTM) of approximately 25.41 times, compared to the Nasdaq Index's P/E ratio of 33.49 times over the same period, highlighting the significant valuation advantage of Hong Kong tech stocks. However, the Hong Kong market itself is highly fragmented, posing a considerable challenge to the precision of stock selection and market timing. For instance, the Hong Kong Stock Connect Technology Index is highly concentrated. Wind data shows that the top five constituent stocks have a combined weight of 50.6%, and the top ten constituents account for 71.6%. Yet, as of August 12, the majority of constituent stocks had negative year-to-date returns, with stocks having negative YTD performance representing over 75% of the index weight. In contrast, the top five performing stocks averaged a YTD return of over 165%. This environment of low valuations coupled with high dispersion provides ample room for active management to add value.

Furthermore, the Hong Kong stock market is a hub for high-growth assets, including internet leaders, AI large language models and computing power supply chains, innovative drugs, and automobiles. With the continuous adjustment and expansion of the Stock Connect eligible stock list, the universe of available targets for mainland investors is growing. The significant differences in profit cycles, valuation levels, and capital preferences across various sectors also provide opportunities for active managers to conduct sector comparisons and select individual stocks.

A Proven Cross-Border Manager Aims to Uncover Alpha in Hong Kong Tech

Zhao Nianshen holds a master's degree in Finance from Peking University's Guanghua School of Management. He has 12 years of experience in the securities industry and nearly 6 years of experience in fund management. Previously, he worked as an equity analyst at the Shanghai Representative Office of Fidelity International (Hong Kong). He joined Fullgoal Fund in June 2017 and currently manages the Fullgoal Minsheng Shanghai-Hong Kong-Shenzhen Select Fund and the Fullgoal Global Technology Internet Fund. Through years of cross-border investment research, Zhao has developed a distinctive GARP (Growth At a Reasonable Price) investment framework, which involves a bottom-up, individual stock selection approach, aiming to buy the highest possible growth at a reasonable price. His stock selection criteria can be summarized as seeking industry leaders or sub-sector leaders with attractive growth, strong cash flow, and competitive moats.

This mature framework is reflected in the fund's performance. According to the fund's periodic reports, despite the high volatility and divergence in global technology markets since the beginning of the year, the Fullgoal Global Technology Internet Fund (Class A) managed by Zhao Nianshen since March 7, 2025, still achieved strong results. As of June 30, 2026, while its benchmark posted a negative return over the same period, the fund's Class A shares recorded a one-year net value growth rate of 114.28%, generating an excess return of 129.66%. According to data from Galaxy Securities as of June 30, 2026, Fullgoal Global Technology Internet A ranked among the top five in its category of QDII equity funds (Class A) over the past one, three, and five years, demonstrating its exceptional cross-border investment capabilities.

As one of China's 'old ten' public fund companies, Fullgoal Fund has 27 years of experience and has built a leading equity research and investment system. Its overseas equity investment team is one of the earliest teams in the industry to focus on Hong Kong stock investments, maintaining a long-standing practice of high-frequency and in-depth research on Hong Kong-listed companies. This robust research support structure is expected to provide a solid foundation for the investment operations of the Fullgoal Hong Kong Stock Connect Technology Hybrid Fund. Interested investors can consider the fund, which officially begins its issuance today (Class A: 027236; Class C: 027237). An MACD golden cross signal has formed, indicating these stocks are showing upward momentum!