Since July 2026, global major stock indices have experienced notable volatility, dragged down by sharp fluctuations in the AI hardware sector. In stark contrast, Hong Kong stocks, previously overlooked by the market, have shown resilient strength, becoming one of the more standout performers among global benchmarks. According to Wind data, as of the close on August 10, 2026, the Hang Seng Tech Index's year-to-date change stood at -10.81%, a significant improvement from the -18.92% decline recorded in the first half of the year. The Hang Seng Index has even achieved a trend reversal, shifting from a -10.73% loss in H1 2026 to a 1.20% gain year-to-date.

Accompanying the market recovery, investment enthusiasm for the Hong Kong tech sector continues to climb. The core popular target, the HuaTai-PineBridge Hang Seng Tech ETF (513130), has seen its average daily trading volume reach 3.511 billion yuan since July, indicating heightened capital activity. A key driver behind the Hong Kong tech sector's countertrend strength is the global shift in investment style and rebalancing strategy. Currently, overseas cloud service providers face issues such as high capital expenditure and pressure on cash flow, leading to growing market concerns about the upstream AI hardware track. In this context, global capital is gradually moving from the volatile hardware sector downstream to AI software and application tracks. The Hang Seng Tech Index aligns with the current market aesthetic, potentially opening up room for valuation recovery.

It is understood that the Hang Seng Tech Index brings together core technology companies including China's internet platforms, cloud computing service providers, and AI technology firms. Its industry chain covers critical links such as computing infrastructure, AI model capabilities, application scenarios, and commercial monetization. According to statistics from CITIC Securities, the AI hardware content of the Hang Seng Tech Index is only 14.48%, significantly lower than the KOSPI Index (66.8%) and the STAR 50 Index (78.3%), making it perhaps more aligned with current market preferences for software applications like large models.

From an industry perspective, the industrialization process of China's AI large models is accelerating, and their monetization capabilities are gaining recognition from foreign investors. In terms of news flow, a research report released on August 3 saw Goldman Sachs sharply raise its forecast for China's AI large model annualized recurring revenue (ARR) for 2026, from $10 billion previously to $13 billion. On the same day, another report indicated that on the OpenRouter platform, Chinese models have ranked among the top five in terms of call volume for 14 consecutive weeks, with DeepSeek V4 Flash consuming 7.22 trillion tokens in a single week to top the global chart. Goldman Sachs specifically noted that the market has clearly underestimated the significant potential of the industry's accelerating shift from free consumer-facing applications to enterprise-level agent workflows with strong monetization capabilities.

After the recent recovery, the current price-to-earnings ratio of the Hang Seng Tech Index stands at 24.13 times, placing it in the 53.26th percentile of its median range over the past five years. This period coincides with the Hong Kong stock interim report disclosure season. Entering this reporting window, institutions hold positive forward-looking expectations. CITIC Securities previously noted that although certain companies are still in an investment phase, the overall year-on-year profit decline for major domestic internet sectors in their H1 2026 reports is expected to narrow significantly to -8% (compared to -32% in the first quarter), with a notable sequential improvement expected. The pressure from investments in AI and new businesses for internet companies is beginning to ease, and losses from traditional businesses, such as instant retail, are also contracting rapidly and clearly.

Simultaneously, the index itself is undergoing self-iteration and upgrades. Hang Seng Indexes Company published a consultation paper on August 10, 2026, seeking market feedback on possible revisions to the Hang Seng Tech Index. The document indicates that, in response to the continuous expansion of the technology sector in the Hong Kong stock market, the proposed revisions aim to broaden the index's technology theme scope, adjust the constituent stock selection mechanism, and increase the number of constituent stocks. This is intended to keep pace with technological developments and maintain the index's representativeness.

The HuaTai-PineBridge Hang Seng Tech ETF (513130) and its linked funds (Class A: 015310 / Class C: 015311) are managed by HuaTai-PineBridge Fund Management, one of China's first ETF managers. With over 19 years of deep experience in index investing, the company offers investors transparent, convenient, and low-cost index tools such as the HuaTai-PineBridge CSI 300 ETF (510300) and the HuaTai-PineBridge CSI A500 ETF (563360). As of June 30, 2026, the company's ETFs have generated over 180.6 billion yuan in cumulative profits for its holders over the past two years, making it one of only three public fund companies in the entire A-share market to achieve cumulative profits exceeding 160 billion yuan during that period. A MACD golden cross signal has formed, indicating these stocks may have positive momentum!