Recently, the major stock indexes in Hong Kong have been shaking continuously since the top reversal, but the semiconductor and consumer electronics sectors have unexpectedly emerged, and the undervalued leading stocks in the sector have shown a "independent market". As of press time, the apple concept stocks in Hong Kong have risen by more than 32% since early June, and the semiconductors sector has also steadily strengthened, rising nearly 20% in the past ten trading days and nearly 12% over the same period. Institutions pointed out that with the decline of the high dividend stocks sector of Hong Kong stock, the market began to seek other investment opportunities. Behind the rise of the technology mainline, there is a new narrative logic called "tech valuation".$AAC TECH (02018.HK)$It rose more than 32% from early June to now, and nearly 17% over the same period. The semiconductor sector is also steadily exerting forces, rising nearly 20% in the past ten trading days and nearly 12% over the same period.$SUNNY OPTICAL (02382.HK)$According to the interpretation of the market for "China Special Valuation System", there is no unified definition for "tech valuation" at present. "Tech valuation" is the abbreviation of "technology character valuation", which is the same as "China Special Valuation System", and both are "safe" assets. This concept first appeared in the report named "Tech Valuation: New Quality Productivity and Breakthrough" published by the Cao Liulong team of Founder Securities. The report stated that the government work report of the two sessions put "new quality productivity" as the top ten work tasks this year. After "China Special Valuation System", "Tech Valuation" also gives its definition. The report pointed out that "tech valuation" focuses on the transformation and upgrading of new quality productivity, including selective manufacturing industries index, sse high-end equipment manufacturing 60 index and other areas, such as electric vehicles and communication, biomedical, AI and biotechnology etc. However, the unfriendly external environment has led to the generally low valuation of China's new quality productivity. China's technology manufacturing industry, including high-end self-made and advanced manufacturing, urgently needs "tech valuation".$HUA HONG SEMI (01347.HK)$According to analysis, the reason for the popularity of tech valuation in the current market is twofold. Firstly, due to the continuous influx of AI and semiconductor boom in the U.S. stock market, giants like Apple and NVIDIA have set new records, bringing attention to technology stocks. Hong Kong's apple concept stocks and semiconductors sectors have also become the "key players" in this round of tech valuation. Secondly, there are not many hotspots in the domestic market at present, and funds are also playing new investment themes. Currently, sectors with strong sci-tech innovation are undervalued. In the context of developing new quality productivity, "tech valuation" is also emerging as an independent trend.$SMIC (00981.HK)$Many institutions previously generally believed that under the customary change in style in June, funds began to look for opportunities, and tech valuation became the target. Several major banking research reports mentioned that the recent performance of the consumer electronics industry is better than market expectations, while the semiconductor industry benefits from the establishment of the National Large Funds. This makes these two major technology sectors attractive to funds and is expected to usher in a new round of valuation reshaping.

So, how can you get into the proposed tech valuation-related targets in Hong Kong stock market?

What is tech valuation and why is it popular?

What is "tech valuation"? At present, there is no unified definition for "tech valuation". According to the interpretation of the market, it is the abbreviation of "technology character valuation", which is the same as the interpretation for "China Special Valuation System".

The concept first appeared in a report titled "Tech Valuation: New Quality Productivity and Breakthrough" published by the Cao Liulong team of Founder Securities. They stated that the government work report of the two sessions put "new quality productivity" as the top ten work tasks this year. After "China Special Valuation System", "Tech Valuation" is also considered a "safe" asset. In the report, the definition of "tech valuation" is given, which focuses on the transformation and upgrading of new quality productivity, including selective manufacturing industries index, sse high-end equipment manufacturing 60 index, electric vehicles and communication, biomedical, AI and biotechnology domains.

Institutions also gave a definition for "tech valuation" in the report. They pointed out that "tech valuation" focuses on the transformation and upgrading of new quality productivity, including selective manufacturing industries index, sse high-end equipment manufacturing 60 index and other areas, such as electric vehicles and communication, biomedical, AI and biotechnology etc. However, the unfriendly external environment has led to the generally low valuation of China's new quality productivity. China's technology manufacturing industry, including high-end self-made and advanced manufacturing, urgently needs "tech valuation".

According to analysis, the reason for the popularity of tech valuation in the current market is twofold. Firstly, due to the continuous influx of AI and semiconductor boom in the U.S. stock market, giants like Apple and NVIDIA have set new records, bringing attention to technology stocks. Hong Kong's apple concept stocks and semiconductors sectors have also become the "key players" in this round of tech valuation. Secondly, there are not many hotspots in the domestic market at present, and funds are also playing new investment themes. Currently, sectors with strong sci-tech innovation are undervalued. In the context of developing new quality productivity, "tech valuation" is also emerging as an independent trend.

How to dig into the tech valuation?

Previously, many institutions believed that tech valuation became the target as funds began seeking opportunities under the customary change in style in June. Several major banking research reports mentioned that the recent performance of the consumer electronics industry is better than market expectations, while the semiconductor industry benefits from the establishment of the National Large Funds. This makes these two major technology sectors attractive to funds and is expected to usher in a new round of valuation reshaping.

So, how can you invest in the tech valuation-related targets in the Hong Kong stock market?

According to the characteristics of tech valuation, Guolian Securities research reports suggest investors pay attention to six clues: firstly electronics, which refers to semiconductor materials and equipment, especially opportunities in the semiconductor field; secondly computing, such as low domestication rate of operating systems, industrial software, etc.; thirdly national defense and military industry; fourthly high-end manufacturing subdivisions such as numerical control machine tools, electronic measuring instruments, 3D printing, deceleration machines, etc.; fifthly medical instruments subdivisions such as endoscopes, high-end ultrasound equipment, analytical instruments, etc.; sixthly new materials in chemical industry, such as display materials, high-performance polymers and film materials.

Swhy securities believe that in the short term, tech valuation catalyzed sci-tech growth market has shown some performance and some stocks have improved their fundamentals. Alpha assets with scarce high prosperity in tech and export chains still maintain configuration. In tech, mostly algorithmic leaders, AI mobile phones, and auto IT; In export chains, mainly high-quality brands.

For the future trend of tech valuation, insiders generally believe that although tech valuation has not yet formed a trend similar to "China Special Valuation System", it needs to be paid attention to. If policy support is increased and short-term liquidity conditions improve, the technology mainline is expected to form a clear trend in the market in the future.

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