On March 10, Hong Kong stocks opened low. By the close, the Hang Seng index was down 2.99%, the state-owned enterprise index was down 3.07%, and the red chip index was down 2.54%. In addition, the Hang Seng Technology Index fell 3.99%, a new low for the year.

ETF, a number of Hong Kong stocks cross-border ETF have fallen sharply. Among them, China Internet ETF, China General Internet ETF, Global Internet ETF, Hang Seng Internet ETF and Hang Seng Technology Index ETF all fell by more than 5%.

On the news, Silicon Valley banks stormed last night, with the benchmark KBW bank index tumbling 8.1%, the biggest one-day drop since June 2020. The big four US banks-JPMorgan Chase & Co, Citigroup, Wells Fargo & Co and Bank of America Corporation-lost $52.4 billion in market value in Thursday's trading.

Market panic is spreading, and Hong Kong stocks will also react when there are sharp fluctuations in global markets. Today, the Hong Kong stock market opened low and left low. The financial sector of Hong Kong stocks generally fell. Hang Seng Bank fell by more than 4%, and Bank of East Asia, HSBC Holdings PLC, Dah Sing Bank Group and Central Plains Bank all fell by more than 3%.

Hong Kong stocks have continued to fall since February, with the Hang Seng Technology Index down nearly 18 per cent in more than a month, bringing the rebound to about 40 per cent since the end of last year. However, the funds continue to copy the bottom of Hong Kong's Internet technology giants through ETF.

Take Hang Seng Technology ETF (513180) as an example, during the recent turmoil in Hong Kong stocks, the fund once again attracted investors'"additional purchases". As of press release, the share increased from 27.8 billion to 30.5 billion in two weeks, which is only one step away from the previous record high. It is also worth mentioning that the share of this product was only 1.5 billion at the beginning of the market. after more than a year of "money", the current scale has increased nearly 20 times.

Meanwhile, the share of the Hang Seng Internet ETF fund surged 4.988 billion shares a week last week. As of March 9, the share of the ETF fund has increased by 8.12 billion so far this year, ranking first in the growth of ETF share in the whole market, and the current size is as high as 26.035 billion yuan.

At present, there are a number of interconnected ETF on the market, among which Yi Fang Da CSC overseas interconnected ETF, the scale is as high as 36.03 billion yuan.

The indices tracked by the ETF are different, including those with the words "overseas" or "global", whose constituent stocks include Chinese Internet companies listed in Hong Kong and the United States; the index with "Hang Seng", whose constituent stocks are only listed in Hong Kong; and those with "Hong Kong Stock Connect" that select constituent stocks from the scope of Hong Kong Stock Connect. Those with "Shanghai, Hong Kong and Shenzhen" have a wider range of choices, including not only Hong Kong Stock Connect, but also Shanghai Stock Connect and Shenzhen Stock Connect.

Due to the difference in the proportion of weights given by index stocks, the elasticity of ETF is high and low. Among them, the CSI overseas China Internet 50 Index is the most concentrated, with the top three heavy stocks Tencent, BABA-SW and Meituan-W with a combined weight of 65.26, far higher than other indices, and investors can choose according to their own preferences.

According to the analysis of the listing of technology companies, the main reason why the Hang Seng technology sector continues to be recognized by funds is because of its scarcity. "scarcity is mainly reflected in two levels, one is the scarcity of the combination of scientific and technological concepts, and the other is the scarcity of constituent stocks."

From the perspective of conceptual mix, A-share gem 50 focuses on new energy, while taking into account medicine, chips, financial technology and other sectors; Science and Technology Innovation Board 50 is more focused on semiconductors and medicine, with high-end manufacturing and hard technology as a whole. While soft technologies, such as Internet leaders and cloud service cutting-edge enterprises, are mostly concentrated in Hong Kong stocks, making the Hang Seng Technology Index and A-share technology plate different and complementary. From the perspective of constituent stocks, only two of the top ten weighting stocks of the Hang Seng Technology Index are listed in A shares, and the scarcity of constituent stocks is also more prominent.

Guolian Securities believes that investors may have doubts about the space and pace of the rebound in Hong Kong stocks. We believe that the Hang Seng Index has strong support near 19000-20000, but the rebound at the index level should be based on the medium term. A larger trend rebound in Hong Kong stocks may occur around May because:

1. The uncertainty of some of the first quarterly results of A shares and Hong Kong stocks in April can be digested.

two。 Some domestic macroeconomic readings in the second quarter of this year may be very high because of the ultra-low base caused by the epidemic in the second quarter of last year.

Huaxia Fund said that in the next few years, it is optimistic that Internet platform companies will have a strong Alpha cash, actual performance or continuous upward revision. The proportion of investment allocation of overseas institutions is still at a very low level. The confirmation of the overall Chinese economy will be the decisive factor for the substantial increase of foreign capital positions, and the performance verification of the Internet industry may be the most important time for foreign capital to enter, so mid-late March is an important point.

Cinda Securities is still full of confidence in the overall performance and valuation repair process of the economic leading companies on the US-listed stock platform in 2023, and continues to maintain positive recommendations to the Internet industry and leading companies. In terms of fundamentals, in the context of the optimization of epidemic prevention policy, the performance of listed companies in the general interconnection plate has a strong momentum of recovery. China General ETF Fund believes that the core driving force of stock price performance is the performance of listed companies, so from a long-term point of view, this sector still has a high performance-to-price ratio.