On the morning of August 1, the three major Hong Kong stock indices opened lower but rose higher. In the market, tech and internet stocks were mixed, some AI concept stocks gained, while oil stocks collectively weakened. Among popular ETFs, the Hang Seng Tech Index ETF (513180) followed the index with a slight increase. Among its holdings, NIO, Alibaba, Baidu Group, XPeng Motors, Bilibili, and SenseTime led the gains, with NIO briefly rising nearly 9%.

Guosen Securities pointed out that Hong Kong stocks have seen a synchronized easing of domestic and foreign capital inflows this year. By comparing Hong Kong and A-shares in terms of cyclical gains, AH premium rates, and broad-based index valuations, the conclusion is that Hong Kong stocks remain within a reasonable valuation range relative to A-shares, and the tech and pharmaceutical sectors still have substantial room for long-term recovery. In terms of sectors, the institution recommends focusing on AI leaders, as internet and AI frontrunners are long-term choices comparable to U.S. AI companies.

As of July 31, the latest valuation (PE TTM) of the Hang Seng Tech Index ETF (513180) was 21.46 times, at approximately the 19.48% percentile since the index's launch on July 27, 2020. This means the current valuation is lower than over 80% of the period since the index's inception. The Hang Seng Tech Index remains in a historically relatively undervalued range, and its high elasticity and growth potential give it greater upward momentum. Investors without a Hong Kong Stock Connect account can use the Hang Seng Tech Index ETF (513180) to easily invest in China's core AI assets.