"Accelerating the Pace of Buying the Dip!"

Recently, the Hong Kong stock market has experienced consecutive pullbacks, but there is a clear trend of market capital increasing positions in the tech sector during declines. Wind data shows that the Hang Seng Tech ETF (513130) has seen net capital inflows for four consecutive trading days (7/25-7/30), with net subscriptions exceeding 1.5 billion shares in the past two days (7/29-7/30), reflecting strong confidence in Hong Kong's leading tech stocks.

Meanwhile, trading activity for the Hang Seng Tech ETF (513130) has been robust. On July 30, its turnover reached RMB 5.68 billion, a 49% increase from the previous trading day, showing significant volume expansion. As of 14:30 on July 31, the ETF's intraday turnover had already exceeded RMB 5.4 billion. Driven by capital inflows, the fund's shares outstanding hit a record high of 39.029 billion on July 30 since its inception (5/24/21), demonstrating advantages in both scale and liquidity. (Data source: exchanges, Wind)

On the other hand, southbound capital continues to flow into Hong Kong stocks against the trend. Over the past five trading days (7/24/25-7/30/25), net purchases of Hong Kong stocks by southbound capital totaled HKD 57.5 billion. As one of the market's scarce core assets, the Hong Kong tech sector stands to benefit from liquidity support. With the recent adjustments, the valuation of the Hang Seng Tech Index has declined significantly. As of July 30, its trailing P/E ratio was 21.71x, sitting at just the 21.28th percentile since the index's launch (7/27/20), suggesting further room for allocation. (Data source: Wind)

The Hang Seng Tech ETF (513130) closely tracks the Hang Seng Tech Index, which comprises 30 leading internet and tech manufacturing stocks in Hong Kong. As of July 30, 2025, the index's top five holdings by weight were Tencent Holdings, NetEase-S, Xiaomi Group-W, Alibaba-W, and Meituan-W—all competitively strong and relatively scarce internet tech leaders. (Data source: Hang Seng Indexes Company, Wind; individual stocks are shown for illustrative purposes only and do not constitute recommendations or investment advice.)

In a recent report, Huatai Securities noted that Hong Kong stocks benefit from loose liquidity, with the overall market not significantly overvalued. Global liquidity easing has increased demand for capital allocation, spilling over into China, particularly the offshore Hong Kong market. Despite the strong rebound year-to-date, Chinese assets remain relatively discounted from a PB-ROE perspective, offering valuation appeal. Considering exchange rate dynamics, the undervalued RMB may have further appreciation potential, enhancing Hong Kong stocks' global attractiveness. Looking ahead, the Hang Seng Tech Index may have greater room for recovery. (Hong Kong Stock Strategy: How Far Has Sentiment Trading Gone? - 7/28/2025)

The Hang Seng Tech ETF (513130) is managed by Huatai-PineBridge Fund Management, one of China's earliest ETF managers with over 18 years of experience. The firm has launched benchmark products such as the CSI 300 ETF (510300) and Dividend ETF (510880), providing investors with diversified, high-quality index investment tools.

Supporting intraday T+0 trading, the Hang Seng Tech ETF (513130) serves as a key tool for capturing growth opportunities in China's tech leaders. Off-exchange investors may consider its feeder fund (Class A 015310/Class C 015311).