In recent weeks, the Hong Kong stock market’s structural recovery trend has become clear, with signs of capital returning. Supported by two simultaneous forces—public funds accelerating their shift southward with policy backing, and Middle East capital continuing to flow into the Hong Kong market—Hong Kong stock sectors centered on new technology and new consumption may see a strong rebound opportunity.

According to Wind data, as of March 16, the Hang Seng Tech Index PE-TTM is only around 21x, placing it in the 15% historical percentile over the past decade, with a clear valuation “value gap” characteristic. Southbound capital has also been continuously adding positions, with net inflows of about RMB 1.501 billion over seven days, reflecting confidence from the capital side in the Hang Seng Tech value recovery.

Facing this round of Hong Kong tech recovery rally, trading activity for related ETF products in the market has also heated up. Among them, the Hang Seng Tech ETF Southern Fund under Southern Fund—Hang Seng Tech ETF Southern (ETF code: 520570; off-exchange connection fund: Class A 020988; Class C 020989) is worth paying attention to.

“Currently, the valuation of the Hong Kong tech sector is at a historical low. Combined with capital inflows, faster AI commercialization, and marginal improvements in policy, the space for medium- to long-term recovery is certainly worth focusing on.” Zhang Qisi, manager of Southern Fund’s Hang Seng Tech ETF Southern, said that as a product tracking the Hang Seng Tech Index, Hang Seng Tech ETF Southern covers 30 technology companies in Hong Kong with relatively large market caps and higher liquidity. It can more accurately reflect the overall trend of the Hong Kong tech sector, while also providing a convenient tool for investors to capture sector market opportunities.

Multi-party positive factors resonate— the Hang Seng Tech recovery window is now open

The Hong Kong tech sector is at a point where multiple positive catalysts are aligned. Although there are still disruptions in the short term, institutions generally believe that the suppressing factors are gradually easing.

From the valuation perspective, the Hang Seng Tech Index’s PE-TTM is only around 21x, significantly lower than the STAR 50 Index (about 161.71x) and the Nasdaq 100 Index (about 33.14x). The valuation advantage is prominent. It is also in the 15% historical percentile over the past decade, lower than more than 85% of the market’s time periods. Since the October 2025 peak, it has cumulatively corrected by 28%, and the margin of safety has improved substantially (Data source: Wind, as of March 16, 2026).

On the capital front, Wind data shows that Southbound capital recorded net inflows of HKD 800 billion in 2024, surged to HKD 1.4 trillion in 2025, and in 2026 continues to add to Hang Seng Tech positions. As of March 16, net inflows over the past seven days were HKD 1.501 billion. At the same time, international capital is accelerating its allocation to Hong Kong, and large amounts of capital have taken the ETF route to go south, driving a surge in the number of shares of related products.

On the industry side, the OpenClaw concept has remained active. Tencent Cloud announced the launch of a “Lobster” nationwide free installation program, which has boosted AI-related sectors. In addition, among the constituents of Hang Seng Tech, there are many high-quality companies in AI application areas, which provide a clear early-mover advantage and ecosystem moat in terms of AI applications commercialization.

Strong fee advantage— Hang Seng Tech ETF Southern delivers efficient allocation to tech leaders

As a representative broad-based index of Hong Kong’s tech sector, the Hang Seng Tech Index selects 30 technology-themed Hong Kong listed companies with large market caps and strong liquidity. Its business coverage spans areas such as networking, financial technology, cloud, e-commerce, and digital business. The index focuses on core sectors including information technology and discretionary consumption, concentrating on Hong Kong’s strengths in new-economy industries such as e-commerce, internet, AI, and cloud computing.

In terms of allocation structure, the index achieves balanced coverage of “soft tech + hard tech.” It includes internet leaders such as Tencent, Alibaba, Meituan, and JD.com, while also featuring core hard-tech companies such as Semiconductor Manufacturing International Corporation (SMIC), Xiaomi, and BYD.

Industry participants generally believe that this balanced allocation approach can both diversify the volatility risk of a single theme and capture opportunities from AI commercialization, balancing stability and growth. It also lays a high-quality underlying foundation for ETF products that track the index.

Taking Hang Seng Tech ETF Southern as an example, supported by high-quality index constituents, the product demonstrates pragmatic advantages in operations. In terms of fees, the management fee rate for Hang Seng Tech ETF Southern is 0.15% per year, and the custody fee is 0.05% per year, which is below the industry’s leading levels (most comparable products have management fees of 0.5% and custody fees of 0.1% per year; Data source: Hexun).