# Holding the 4,000 Mark! Banking Resilience Stands Out, "Powering AI" Breaks Through, Huabao Power ETF Gains Against the Market! Hong Kong Tech Hardware Stocks Stumble, 159131 Attracts Major Inflows

Bearish signals hit the market hard, causing extreme volatility worldwide! On March 19, Asia-Pacific markets declined across the board, with the Hong Kong Hang Seng Index dropping 2.02%. The Shanghai Composite fell 1.39% to 4,006.55 points, briefly dropping below 4,000 before recovering. News reports indicate escalating geopolitical tensions pushing oil prices higher, combined with the Federal Reserve signaling a hawkish stance overnight, fueling a rapid increase in global risk aversion.

In the A-share market, cyclical stocks led the decline, with the China Merchants Fund (159876) China Metal ETF plunging 5.88% for seven consecutive days of decline, and the Chemical ETF (516020) down 4.29% for six days in a row. Technology and growth stocks also retreated, with the Huabao Science and Technology Innovation AI ETF (589520), the Huabao Military Industry ETF (512810), and the Electronic ETF (515260) all falling more than 2%.

Amid the bearish sentiment, the “computing power” + “electricity” synergy broke through, with the “Powering AI” portfolio— the largest AI-focused GEM ETF Huabao (159363)—seeing increased volume and consecutive gains. The fully “electric” layout of the Huabao Power ETF (159146) defied the trend and closed higher.

Banks demonstrated resilience, with the hundred-billion-dollar top bank ETF (512800) repeatedly rising during the day, turning red briefly before closing down 0.37%, outperforming the broader market. Major state-owned banks led the rally, with ICBC up 1.89%, Agricultural Bank of China and China Construction Bank up over 1%, and Bank of China and Xiamen Bank also rising.

Market risk appetite declined, prompting funds to flow into lower-risk, higher-certainty assets. The bank ETF (512800) has seen continuous inflows recently, with a total of 627 million yuan absorbed over the past four days.

Hong Kong stocks experienced even greater volatility, especially in tech stocks. The Hong Kong Internet ETF (513770), focused on core AI assets, fell 2.37%; the Hong Kong Information Technology ETF (159131), the only ETF focusing on the Hong Kong chip industry chain, declined 2.54%, giving back yesterday’s gains amid heavy buying—daily subscriptions reached 71 million units.

The Hong Kong pharmaceutical sector also retreated across the board, with the Hong Kong Stock Connect Innovation Drug ETF (520880), which invests solely in innovative drug R&D targets, falling 2.43%, breaking below all moving averages. The Hong Kong Stock Connect Healthcare ETF Huabao (159137), with high CXO content, declined 3%, halting a three-day winning streak.

Analysts note that as geopolitical conflicts enter a new phase, markets are shifting from short-term pricing to a “long-term war” model. In the short term, global equities may remain range-bound, with high-valuation growth sectors vulnerable to sentiment swings. Focus should be on two main themes: first, safe-haven and resource-driven sectors catalyzed by geopolitical tensions, such as banks, coal, and new energy; second, sectors benefiting directly from energy price increases, including oil exploration, coal chemicals, and shipping.

【ETF Hot Topics Review】Next, we focus on trading and fundamentals of the GEM AI and electricity, banking, and Hong Kong IT sectors.

1. Computing power stocks hit new highs, electricity stocks hit daily limit! “Compute + Power” synergy strengthens, Huabao GEM AI ETF volume surges, and the Power ETF defies the trend to close higher!

“Compute” and “electricity” are indeed working together, showing active performance throughout the day!

In computing power, the GEM AI ETF (159363) rose sharply, with Copper Bull Information (20CM) hitting a new high with a limit-up; Yihua Lu (Yihua Lu) up over 9%; and stocks like Runze Technology, Xinyi Sheng, and Tianfu Communications gaining over 1%. After a 5.6% surge yesterday, the ETF opened lower but then rose steadily, with volume exceeding 900 million yuan, continuing its upward trend.

In electricity, multiple stocks such as Lixin New Energy, Guangdong Electric Power A, and Guang’an Aikang hit daily limits. The fully electric layout Huabao Power ETF (159146) closed up 0.36% amid a rebound after a dip, with nearly 27 million yuan net inflow over five days.

Demand for computing power continues to rise, with cloud providers raising prices. Following Amazon and Google, Alibaba Cloud and Baidu Smart Cloud announced price hikes—Alibaba Cloud’s AI compute and storage products could increase by up to 34%, and Baidu’s Smart Cloud by about 30%. Open Source Securities believes that the widespread adoption of AI applications may trigger increased inference demand, and with Nvidia’s capacity constraints, rising hardware costs, and domestic substitution gaps, the rental market for compute power is entering a “seller’s market,” with price increases likely to persist.

Huaxi Securities states that AI remains a key investment theme. Currently, AI development is in the Scale-up and Scale-out acceleration phases. As supply chains for related chips become more robust, application demand for tokens continues to grow rapidly, and underlying infrastructure is still expanding. They remain optimistic about the growth opportunities for CSP (Cloud Service Provider) capital expenditure and AIDC markets driven by increased compute leasing.

To capitalize on AI opportunities, investors should consider the GEM AI ETF (159363) and its off-exchange links (A-shares 023407, C-shares 023408), which directly benefit from AI commercialization. The sector allocation is roughly 60% compute power (including leading optical modules and IDC companies) and 40% AI applications, representing both core “compute” and genuine “AI application” exposure.

In the electricity sector, GF Securities highlights four major positives: first, electricity becomes a core asset in the AI era, from top-level design to international expansion; second, rising electricity prices reinforce valuation; third, it aligns with the “HALO” asset paradigm, offering both defensive and growth benefits; fourth, valuation gaps are narrowing, and the sector offers both defensive and offensive opportunities.

Investors should consider the Huabao Power ETF (159146), which tracks the electric utility sector, covering thermal, hydro, wind, nuclear, and photovoltaic power. The sector offers dividends and growth potential, with high concentration in leading stocks. It is expected to benefit from AI compute growth and power reform policies, making it a good one-click opportunity to tap into the energy sector’s growth. Note: The off-exchange fund (code 026949) is launching on March 23!

2. Four major banks defend the market, Huabao’s billion-yuan Bank ETF (512800) shows resilience with triple-layered allocation logic, attracting risk-averse capital

The banking sector demonstrated strong resilience throughout the day, with the billion-yuan top bank ETF (512800) repeatedly rising and turning red briefly before closing down 0.37%, outperforming the broader market. Major state banks led the rally: ICBC up 1.89%, Agricultural Bank and China Construction Bank up over 1%, and Bank of China and Xiamen Bank also rose.

Given ongoing geopolitical tensions and declining risk appetite, investors are favoring low-risk, more certain assets. The bank ETF (512800) has attracted continuous inflows, with 627 million yuan absorbed over the past four days, according to Shanghai Stock Exchange data.

Considering the external and internal environment, analysts believe there are at least three reasons to allocate to banks now:

First, risk aversion and allocation needs are rising. In an environment of increasing global uncertainty and falling interest rates, banks’ high dividend yields and quasi-debt attributes make them attractive to long-term funds like insurance and pension funds.

Second, there is significant potential for incremental capital inflows. Many bank deposits are maturing, and institutional funds like insurance capital have substantial funds to allocate. The high dividend and low volatility profile suits long-term investment needs.

Third, valuation advantages are evident. After recent corrections, bank valuations are at relatively low levels historically. Increased market volatility or high-valuation growth stocks could attract funds, including those previously sidelined.

Feng Chencheng, fund manager of the bank ETF (512800), states that both the fundamentals’ stability and dividend value, as well as defensive style, support the sector’s attractiveness. In a risk-averse environment, banks—still in earnings recovery—are a good defensive allocation.

The ETF (512800) and its linked funds (A-shares 240019; C-shares 006697) track the CSI Bank Index, comprising 42 listed banks, making it an efficient tool for overall bank sector exposure. The ETF’s size exceeds 12 billion yuan, with an average daily trading volume over 800 million yuan since 2025, making it the largest and most liquid among the 10 bank ETFs listed in A-shares.

3. Turbulence erupts, funds bet on Hong Kong tech! The only Hong Kong IT ETF (159131) hits 71 million units in single-day subscriptions

The only Hong Kong Information Technology ETF (159131) experienced weak volatility throughout the day, closing down 2.54%, with a trading volume of 193 million yuan—slightly lower than yesterday— and a turnover rate over 44%, indicating active trading. Despite declines, investors continued to buy, with real-time subscriptions reaching 71 million units and net subscriptions of 59 million units.

Among its 45 constituent stocks, only three gained: Xiaomi Group-W surged nearly 6%, possibly boosted by news of the new SU7 model launch.

Is Hong Kong stock investment still viable? Galaxy Securities reports that Hong Kong stocks remain attractive due to their valuation discount, drawing risk-averse capital seeking safety. Additionally, global funds completed rebalancing before March 13 under stress tests, and southbound capital has built a solid base. The dual attributes of Hong Kong assets further strengthen their appeal.

How to invest in Hong Kong stocks? Domestic and foreign investors have different preferences. Galaxy Securities notes that mainland Chinese funds view core assets (tech, energy) as strategic platforms for global allocation, sharing China’s growth and hedging RMB fluctuations—hence, they buy more on dips. Global funds see energy and industrial sectors as tactical tools to combat inflation and seek safe havens amid geopolitical tensions—thus, they buy selectively.

Regarding valuation, the “Hong Kong chip” industry chain shows high investment value. As of March 18, the Hong Kong Information Technology ETF (159131) had a forward P/E ratio of 34.22, near the 3-year 34.62% percentile, with over 56% room to the 2025 February peak.

Focusing on the Hong Kong chip supercycle, the T+0 Hong Kong chip industry chain ETF—the first to focus on the “Hong Kong chip” industry chain—is the Hong Kong Information Technology ETF (159131), with off-exchange fund code 026755. Its underlying index comprises 70% hardware and 30% software, heavily weighted toward Hong Kong semiconductor, electronics, and software companies, including 45 high-tech firms. Notably, SMIC (14.07%), Xiaomi (12.41%), and Huahong Semiconductor (7.47%) are top holdings. It excludes large-cap internet giants like Alibaba, Tencent, and Meituan, offering sharper focus on AI and high-tech trends. (As of March 11, 2026)

Data sources: China Securities Index Co., Shanghai and Hong Kong Exchanges. Note: “Only ETF tracking the CSI Hong Kong Stock Connect Information Technology Composite Index” refers to this ETF.

Institutional views sourced from: Huaxi Securities “Focus on Major AI Conferences and Exhibitions This Week”; GF Securities “Valuation and Reform Redirection Highlight Power Sector Investment”; Galaxy Securities “Safe-Haven Effect of Capital Flows?—Analysis of Liquidity Reconfiguration in Hong Kong Stocks under US-Iran Tensions.”

Note: ETF sales do not include sales service fees. When subscribing or redeeming, agents may charge up to 0.5% commission, covering exchange and registration fees. See each fund’s legal documents for detailed fee info.

Risk warning: Huabao GEM AI ETF tracks the GEM AI Index, with base date 2018.12.28, published on 2024.7.11. The Hong Kong Information Technology ETF tracks the CSI Hong Kong Stock Connect IT Index, with base date 2014.11.14, published 2017.6.23. The Bank ETF tracks the CSI Bank Index, with base date 2004.12.31, published 2013.7.15. The stocks mentioned are for index component illustration only, not recommendations. All information (including stocks, comments, forecasts, charts, indicators, theories, etc.) is for reference only. Investors are responsible for their own investment decisions. The views and forecasts in this article do not constitute investment advice. The company is not liable for any direct or indirect losses resulting from use. Investors should carefully read the fund’s legal documents, understand the risk-return profile, and choose products suitable for their risk tolerance. Past performance does not guarantee future results. The risk levels of the Hong Kong IT ETF and GEM AI ETF are R4—medium-high risk, suitable for aggressive (C4) and above investors; others are R3—medium risk, suitable for balanced (C3) and above. Suitability opinions are subject to sales institutions’ assessments. The legal risk ratings may differ from those of the fund manager. Investors should understand the fund’s risk-return profile and make cautious choices based on their investment goals, horizon, experience, and risk capacity. The CSRC’s registration of these funds does not imply any endorsement of their investment value or prospects. Investment involves risks; proceed cautiously.