Introduction: When investing in Technology, the focus is not only on the technology itself but also on how it changes the market and human behavior, because this is the true engine driving investment returns—Soros.

In recent years, the rapid development of cutting-edge technologies such as AI, Big Data, and Cloud Computing has led to profound changes in the Global technology industry. A number of outstanding technology companies, leveraging their strong innovation capabilities, continue to disrupt traditional industries and create new business models, becoming the core driving force for social growth.

From the USA's NASDAQ 100 Index to Taiwan's electronic technology sector index, these indices not only aggregate the most innovative and competitive technology enterprises but have also become synonymous with outperforming the market and generating substantial returns in the Capital Markets.

The Hong Kong stock market, as an important financial bridge connecting China and the world, has gathered a number of technology enterprises with significant growth potential. Since the beginning of the year, driven by technology companies such as Alibaba (09988), Xiaomi (01810), and TENCENT (00700), the Hang Seng Index has surpassed the NASDAQ Composite Index with a rise of over 20%. In the context of China's AI technology explosion, will the related Hong Kong stock technology index grow into the 'Chinese version of NASDAQ 100'?

Data source: iFind, Statistical period: 2025.1.1—2025.3.12

In the selection of specific Hong Kong stock technology funds, we have found two products, one on-market and one off-market: the E Fund CSI Technology 50 ETF (159747) and CSOP Hang Seng TECH Index ETF (A/C: 020988/020989). How should investors correctly grasp their investment value in the current market?

Taking the Hang Seng TECH Index as an example, why can the Hong Kong stock market better represent this wave of Technology?

With the explosive growth of the 'AI+' Industry Chain triggered by DeepSeek at the beginning of the year, the market is gradually realizing that the integration speed of Technology with various Industries is entering the 'second curve.' The Hong Kong stock market has keenly captured this trend, transitioning from the traditional 'dividend bull' to the vibrant 'AI bull' phase full of innovation.

In fact, taking the Hang Seng TECH Index as an example, we can find that it can fully benefit from this wave for the following two reasons:

① The high concentration of symbols.

In terms of specific symbols, the Hang Seng TECH Index encompasses a number of the highest quality companies in terms of Technology attributes, represented by technological giants such as Semiconductor Manufacturing International Corporation, Alibaba, Xiaomi Group, and TENCENT. With their deep technical accumulations in their respective fields, their stock prices have seen significant increases since the beginning of the year, invigorating the entire Technology Sector.

Data source: Wind, statistical period: 2025.1.1——2025.3.12, individual stocks do not constitute investment advice.

② The high generalization of processes.

From a specific perspective, the Hang Seng TECH Index encompasses the entire AI Industry Chain from Cloud to Application to Chip to Terminal, with AI-related symbols accounting for 71%, effectively capturing all potential investment opportunities in the AI wave.

Data Source: Wind, as of March 2025, individual stocks do not constitute investment advice.

Since the beginning of the year, the topic of "value reassessment" in China's Technology has become a new hot topic in the market. International capital's recognition of the potential and value of China's "Seven Sisters" - BYD, Alibaba, Lenovo, Meituan, Semiconductor Manufacturing International Corporation, TENCENT, and Xiaomi has continually increased. Foreign capital represented by Goldman Sachs and Deutsche Bank was the first to speak out, recommending an increased allocation to Chinese technology companies. Compared to the drastically different performances of the US and China’s "Seven Sisters" in this round of market trends, the market has already identified China's core technology assets as one of the key symbols not to be overlooked by 2025.

Data Source: Wind, as of March 13, 2025.

Although the Hong Kong stock market's Technology Sector has experienced some increase previously, for investors looking to capitalize on this wave of AI, both from historical valuation levels and in comparison to foreign similar technology indexes, current Hong Kong technology assets remain relatively low (about the 30th percentile over the past five years). This undervaluation not only reflects the market's rational expectations for the future development of enterprises but also provides room for potential value recovery. At this time, for investors looking to position themselves in the Hong Kong technology sector, Hong Kong Technology ETF (159747) and CSOP Hang Seng TECH Index (A/C: 020988/020989) are undoubtedly good choices.

Data source: iFind, statistical period: March 13, 2020 - March 13, 2025.

What are the respective focuses of Hang Seng TECH and Hong Kong Stock Technology?

Tech assets in the Hong Kong stock market exhibit significant investment advantages in the current market environment, providing professional investors with a diverse range of investment choices. The Hang Seng TECH Index and the CSI Hong Kong Technology Index stand out as leaders, each possessing unique characteristics and advantages.

The Hang Seng TECH Index, as a well-established representative index of the Hong Kong Stock Technology sector, has high recognition and market influence. Its constituent stocks are mainly concentrated in areas such as internet giants, semiconductor chips, and new energy vehicle manufacturers, showing high concentration. As an index with an 'AI content' of 71%, we also analyzed why the Hang Seng TECH benefits from this round of market from the perspective of its symbols.

It is particularly important to add that the weighty stocks of the Hang Seng TECH Index generally possess both consumer attributes (stable cash flow) and technology attributes (AI, Cloud Computing). Against the backdrop of a clearly defined policy of 'supporting the platform economy', related companies can deliver good returns for investors relying on their technological accumulation and substantial user base.

Data Source: Wind, as of March 13, 2025.

However, combined with the characteristics of this round of the market, another 'more aggressive' CSI Hong Kong Technology Index (hereinafter referred to as 'Hong Kong Stock Technology') is worth noting. Compared to Hang Seng TECH, the sample size of Hong Kong Stock Technology has increased from 30 to 50, covering larger market cap technology leaders with higher R&D investment and better revenue growth, focusing on the 'hardcore technology' sector, excluding symbols with strong financial and consumer attributes, achieving higher purity in technology.

In terms of specific industry distribution, Hong Kong stocks in Technology not only include traditional Internet giants but also cover core tracks such as Semiconductors, Electric Vehicles, Biotechnology, AI Chips, etc. They also encompass the "Terrific 10" summarized by Wall Street, which consists of ten major Technology stocks representing the core leading enterprises in China's Technology field, possessing strong market influence and competitiveness. The weight of these ten Technology stocks accounts for over 70% of the Hang Seng TECH Index, and this high-purity configuration not only brings the Index the same "moat" but also provides investors with the greatest certainty in seizing Technology investment opportunities.

Data Source: Wind, as of March 13, 2025.

Epilogue.

In 1943, Warren McCulloch and Walter Pitts proposed the basic model of artificial neural networks, laying the theoretical foundation for the development of AI. Due to limitations in computational power and a lack of data resources, the development of AI fell into its first trough in the 1970s, known as the "AI winter." Many research projects stagnated due to funding shortages, and researchers' enthusiasm was extinguished.

However, humanity's pursuit of intelligence has never stopped. In 2012, AlexNet achieved groundbreaking results in the ImageNet image classification competition, and deep learning technology began to emerge, propelling AI into a rapid development phase.

By 2025, in a whirlwind of advancement, AI is building a new paradigm for our lives and work, from voice recognition to intelligent driving, from medical diagnosis to financial risk prediction. The Hong Kong stock market has gathered a large number of enterprises with deep technological accumulation and innovative capabilities in the AI field. These companies not only invest heavily in technological R&D but have also achieved significant results in market applications, injecting strong momentum into the development of the Hong Kong Technology Sector.

For on-site investors, attention can be paid to the Hong Kong Technology ETF (159747) tracking the Hang Seng TECH Index. Off-site, you can focus on the CSOP Hang Seng TECH Index ETF (A/C: 020988/020989) that tracks the Hang Seng Technology Index. Investing in Hong Kong Technology Assets is not only to seize the current opportunities of AI technology development but also to lock in potential returns brought by future technological changes in advance.

This article is reproduced from the "Dian Shi Investment" public account; edited by Zhitong Finance: Li Fo.