On the morning of August 29, the Hang Seng Tech Index opened higher but then fell before fluctuating and strengthening. In the market, gold stocks gained strength, while the semiconductor sector collectively adjusted. The largest A-share ETF in the same segment, the Hang Seng Tech Index ETF (513180), turned higher during the session. Among its holdings, Haier Smart Home, SenseTime, Trip.com Group, and Li Auto led the gains, while Hua Hong, Tencent Music, and SMIC were among the top decliners.

In terms of capital, on August 28, southbound capital saw a significant net outflow of HKD 204.41 billion. Today, the net inflow trend of southbound capital resumed. As of the time of writing, the daily net inflow of southbound capital has exceeded HKD 50 billion. Guotai Haitong previously pointed out that the annual incremental southbound supply is expected to exceed CNY 1.2 trillion, foreign capital is expected to improve marginally, and the Hong Kong stock market will be driven by incremental capital in the second half of the year. Looking ahead, southbound capital, represented by domestic institutions, still has considerable room for increased allocation: in terms of public funds, if calculated based on the upper limit of Hong Kong stock investment比例 stipulated in Hong Kong fund contracts, the total scale of public funds for the year is expected to reach CNY 300-450 billion; for insurance capital, benefiting from the steady growth of premium scale, the actual incremental insurance capital for the year is expected to reach around CNY 250-400 billion.

The Hang Seng Tech Index previously underperformed compared to the A-share tech sector. With improvements in external liquidity narratives, its upward momentum may become stronger, potentially ushering in a "catch-up rally." Investors without a Hong Kong Stock Connect account can use the Hang Seng Tech Index ETF (513180) to gain one-click exposure to China's core AI assets.