In the face of recent market volatility, an analysis of various current indicators reveals that although the Hong Kong technology sector is facing short-term adjustments, its inherent long-term upward trend has not changed. The current phase may provide investors with an important strategic layout opportunity.

A key observation indicator—the change in the AH-share premium index—reveals deeper market trends. The index has significantly retreated from the high of 40% at the beginning of the year to around 20%, indicating that the discount of H-shares relative to A-shares is narrowing substantially. The convergence of the price gap is the most direct evidence of the revaluation process, reflecting that both domestic capital flowing south through the Stock Connect and returning international capital are taking practical actions to fill the previous valuation gap.

Looking ahead, the Hong Kong technology sector is in a favorable environment of "right timing and geographic advantages." "Right timing" is reflected in the resonance between the gradual rise of the global macroeconomic tailwind and the continuous inflow of domestic and foreign capital; "geographic advantages" lie in its position at the high ground of the AI industry and its significant valuation advantages.

Although market sentiment is inevitably fluctuating, leading to short-term oscillations, based on the above core supports, the overall sector's oscillatory upward pattern—where "downside has a floor, and upside has room"—is expected to continue. Therefore, every pullback triggered by market sentiment or short-term factors may be a good opportunity for investors who missed the initial entry to buy core Chinese technology assets at relatively reasonable prices. What investors need to do is stay rational, ignore short-term noise, focus on the long-term development trends of the industry, and seize the certain opportunities brought by China's economic transformation and the technological revolution.

【Hong Kong Tech-related ETFs】

Covers the entire technology industry chain—Hong Kong Stock Connect Technology ETF Fund (159101);

Focuses on internet leaders—Hang Seng Internet ETF (513330).