In mid-late April of this year, Hong Kong stocks began a wave of intense surges. Internet stocks became the main force in the rebound. At one point, the Hang Seng Technology Index had its biggest increase of over 40%.

A week ago, Dave Mazza, CEO of the well-known investment company Roundhill Investments, said in an interview with the media that he plans to launch a new product, the Chinese technology stock ETF “Lucky 8,” with the trading code “LCKY.”

As for the US stock Mag, this upcoming ETF is known by the outside world as the “Mag 7” of China's summary. The initial constituent stocks include eight leading Chinese technology companies: Tencent, Alibaba, Meituan, BYD, Xiaomi, Pinduoduo, JD, and Baidu, all of which are equally weighted.

According to Roundhill's May 17 filing with the US SEC, the eight companies were selected because of their “market dominance in technological innovation.”

Roundhill CEO Dave Mazza believes “if the economy accelerates, this could be a good opportunity for investors to enter the Chinese market.”

According to reports, the ETF is currently awaiting approval from the US Securities and Exchange Commission (SEC). Once approved, it is expected to be officially launched this summer.

Although there are many existing Chinese securities ETF products in the US stock market, such as the Krane Shares CSI China Internet ETF, which provide broad exposure to Chinese technology stocks, Mazza wants investors to choose only a few key companies in this field.

Dave Mazza said, “If you just want to invest in these companies' stocks, some traditional Chinese securities ETFs may be difficult to do, but Lucky 8 can.”

Regarding future investment prospects for Chinese assets, Liu Mingdi, chief Asian and Chinese stock strategist at J.P. Morgan Chase, said that since the end of October last year, the strategy for Chinese stocks has changed to be fully optimistic about Chinese stocks. The recommended industries this year include the Internet, science, communications (including media), materials, industry, and IT, focusing on leading companies in various industries.

Tianfeng Securities pointed out in the research report that since 24Q1, the bottom of the Hong Kong stock market has continued to rise. Since late April, multiple internal and external factors have resonated, and the market has ushered in a continuous sharp rise. Compared with the global market, Chinese assets are still cost-effective. On the basis of continuously introducing multiple favorable policies that exceed expectations, gradually recovering expectations, and expecting gradual improvements in fundamentals in the future, the team believes that the current Hong Kong stock market is still attractive in terms of valuation, and the risk-return ratio is high.

It is worth mentioning that the International Monetary Fund (IMF) announced in Beijing on May 29 that it will raise China's economic growth forecast by 0.4 percentage points to 5% this year.

IMF First Vice President Geeta Gopinath said that this was mainly due to China's strong GDP growth in the first quarter and related policy measures recently introduced.

According to public information, Roundhill Investments was founded in 2018 as an investment advisor registered with the US Securities and Exchange Commission, focusing on innovative exchange-traded funds (ETFs). Roundhill's ETF products mainly provide unique and differentiated risk exposure in thematic stocks, options income, and trading instruments.

On May 9, Roundhill Investments was pleased to announce that the company's ETF assets under management (AUM) have exceeded $1 billion.

Since the beginning of the year, Roundhill Magnificent Seven ETF (NASDAQ: MAGS) and Roundhill Generative AI & Technology ETF (NYSE: CHAT) have achieved the most significant growth, with net inflows of $225 million and $70 million respectively.