The Hong Kong stock market continued to perform well in 2025 due to a combination of favorable factors such as the Federal Reserve's interest rate cuts and breakthroughs in AI big model technology. The Invesco Great Wall China Securities Hong Kong Stock Connect Technology ETF allocates high-quality technology companies in the Hong Kong market with one click, which is worth investors' attention in the current market environment.
Since 2025, the performance of the Hong Kong stock market has continued to be impressive. The main reasons for the rise in Hong Kong stocks: 1) the Federal Reserve began a cycle of interest rate cuts, and liquidity in the Hong Kong market improved; 2) Southbound capital inflows continued, and sentiment was high; 3) the big model made a breakthrough, driving the global AI wave.
Judging from the static valuation, there is still room for growth in the Hong Kong stock market. The price-earnings ratio of the Hang Seng Index is 10.55, which is in the 68% position in the past five years; the price-earnings ratio of the Hang Seng Technology Index is 23.29, which is in the lower quantile of 25% in the past five years. Comparing the price-earnings ratio of representative indices in various markets around the world horizontally, it can be seen that the overall valuation of the Hang Seng Index is still at a low level.
The performance of the segmented circuit was outstanding, driving new technological momentum in Hong Kong stocks. New energy vehicles: The policy promotes the continuous development of the NEV industry, the revenue of leading companies continues to increase, and technological innovation is accelerated. Biomedicine:
The biomedical market space is broad, and the segments continue to develop. Policies encourage and support outstanding biomedical companies to go public in Hong Kong.
The China Securities Hong Kong Stock Connect Technology Index (931573.CSI) selected 50 securities of leading technology listed companies with large market capitalization, high R&D investment, and good revenue growth from the Hong Kong Stock Connect range as an index sample to reflect the overall performance of securities of leading technology listed companies within the Hong Kong Stock Connect.
Index characteristics: 1) Large market capitalization style: The number of constituent stocks with a market value of HK$100 billion or more is 18, accounting for 82% of the weight; 2) The electronics and automobile industry has a high weight: the index accounts for 24.19% and 20.51% of the electronics and automobiles respectively; 3) Compared with the Hang Seng Technology Index, the pharmaceutical sector has a significantly higher weight.
Index performance: In the past ten years, the China Securities Hong Kong Stock Connect Technology Index has excellent earnings characteristics and is superior to mainstream broad-based indices. The index has an annualized return of 12.34% and a Sharpe ratio of 0.52. The risk return is high and the flexibility is high.
Invesco Great Wall China Securities Hong Kong Stock Connect Technology ETF (513980.OF) is a passive index fund established by Invesco Great Wall Fund on June 21, 2021. Currently, the fund size exceeds 10 billion dollars, and the liquidity is good. The products include OTC funds, Invesco Great Wall CSIC Hong Kong Stock Connect Technology Link A (016495.OF) and Invesco Great Wall China Securities Hong Kong Stock Connect Technology Link C (016496.OF).
Fund manager Mr. Zhang Xiaonan has 14 years of experience in the securities and fund industry. He currently manages many funds such as the Invesco Great Wall China Securities A500 ETF and the Invesco Great Wall NASDAQ Technology Market Capitalization Weighted ETF, with a total size of 43.958 billion yuan. The fund manager, Mr. Jin Huang, has 8 years of experience in the securities and fund industry. It currently manages a number of funds, such as the Invesco Great Wall China Securities Hong Kong Stock Connect Technology ETF and the Invesco Great Wall Shanghai Science and Technology Innovation Board Comprehensive Price ETF, with a total size of 10.009 billion yuan.
Risk warning: This report is for investment reference only. The past performance of fund products does not indicate future performance, nor does it constitute a guarantee or investment recommendation for investment income. NEDAF has no historical results to refer to.
