Southbound Trading Purchases Exceed HKD 26 Billion in a Single Day, Hong Kong Stock Liquidity Environment May Improve Marginally; Hang Seng Technology ETF Huatai-Invesco (513130) Fund Shares Surpass 8 Billion Units!

Despite recent volatility and pullbacks in the Hong Kong stock market, funds are actively increasing their positions in the Hong Kong tech sector at lower prices. On March 19, 2026, southbound funds had a total net purchase of HKD 26.19 billion, the second-highest daily net inflow this year, only behind the record HKD 37.213 billion on March 9, 2026.

In addition to the steady increase in southbound investments, the ongoing escalation of geopolitical tensions has made Hong Kong, with its offshore market status, undervaluation advantage, and well-developed financial system, an important safe haven and long-term allocation destination for overseas funds from the Middle East and other regions. Furthermore, as the annual report disclosure season approaches its end, major internet companies are expected to restart share buybacks, injecting liquidity into the Hong Kong market. As a key sector, Hong Kong tech assets may see valuation recovery opportunities.

The solid fundamentals of heavyweight stocks also provide strong support. Recently, two major internet giants released their 2025 financial reports. The leading social media platform’s revenue in 2025 first exceeded HKD 700 billion, reaching HKD 751.766 billion, a 14% year-over-year increase; net profit attributable to shareholders was HKD 224.842 billion, up 16%. Both revenue and profit hit record highs, with AI technology deeply empowering core businesses such as gaming, advertising, and video channels, further validating the commercialization logic of AI. Another leading e-commerce platform’s cloud services grew 36% year-over-year, with AI-related product revenue increasing triple digits for the tenth consecutive quarter.

As a result, many funds are accelerating their contrarian allocations to core Hong Kong tech assets through popular ETFs. The Hang Seng Tech ETF by Huatai-PineBridge (513130) recently surpassed 80 billion units in fund shares, with a scale exceeding HKD 50 billion, ranking among the top in its category. Since February this year, it has attracted HKD 11.4 billion in net inflows, with an average daily trading volume of HKD 6.2 billion, making it one of the few ETFs in the market with over HKD 8 billion in cumulative inflows and daily trading volume over HKD 5.3 billion.

The Hang Seng Tech ETF by Huatai-PineBridge (513130) closely tracks the Hang Seng Tech Index, which includes 30 large-cap, highly liquid core tech companies. The top ten holdings are Xiaomi Group-W, BYD Company, Meituan-W, Tencent Holdings, Alibaba-W, NetEase-S, SMIC, JD.com-SW, Kuaishou-W, and Baidu Group-SW. It is regarded as one of China’s tech “bellwethers” and “core assets,” covering key areas such as computing infrastructure, AI modeling capabilities, application scenarios, and commercial monetization, with potential to benefit from the AI wave.

The latest PE ratio of the Hang Seng Tech Index is 22 times, only slightly above the lowest 5-year level of 26.41%, indicating a relatively low valuation historically. Given its quality, it may now be in a value zone worth attention. Huatai Securities believes that Hong Kong stocks have experienced early correction, with valuations at a mid-to-low global level, making them attractive for allocation.

The Hang Seng Tech ETF (513130), which supports T+0 intraday trading, is one of the most recognized mainstream tools for Hong Kong tech sector allocation among investors. Its latest scale is HKD 50.851 billion, with a significant scale advantage. Since the beginning of the year, it has averaged daily trading of over HKD 5.8 billion, one of the few ETFs tracking the Hang Seng Tech Index with daily trading over HKD 5.1 billion. The management fee is 0.2% per year.

Additionally, according to Huatai-PineBridge Fund’s announcement, the Hang Seng Tech ETF (513130) will change its on-market trading abbreviation to “Hang Seng Tech ETF Huatai-PineBridge” starting March 18, 2026, aligning the index name with the product abbreviation for clearer investment positioning. Huatai-PineBridge has been deeply involved in index investment for nearly 20 years, creating the market’s first dividend-themed ETF and the first cross-market ETF, such as the CSI 300 ETF. By the end of 2025, its ETFs had generated over HKD 164 billion in cumulative profits for holders over the past two years, making it one of only four fund companies in the market with cumulative profits exceeding HKD 1 trillion. The fee structure for 77.8% of its ETF products is among the lowest in the market, with management fees at 0.15% and custodial fees at 0.05% annually.

MACD golden cross signals have formed, indicating good upward momentum for these stocks!