As we all know, "science and technology is the primary productive force", which is a medium-and long-term investment opportunity favored by the whole market. Fund companies are also desperately "scrambling for territory", actively layout the corresponding technology ETF, especially love the gold harbor stock market.

According to a reporter from China Fund News, following the approval of the first batch of Hang Seng Technology ETF, three major Nuggets Hong Kong stock technology index products were approved: among them, Penghua, Jingshun Great Wall, Huatai Perry, Cathay Pacific, Hai Fortis were approved is its CSI Hong Kong Stock Connect Technology ETF; and Ping an, Yinhua's Hang Seng Hong Kong Stock Connect China Technology ETF is approved; Merchants and the South's CSI Hong Kong Technology ETF (QDII) are approved.

Industry insiders said that at present, many technology listed companies in Hong Kong stocks, such as the "BAT" troika-Tencent, Alibaba, Baidu, as well as Meituan, Kuaishou and other investment value are optimistic. At the same time, the risk-income ratio of some assets in Hong Kong stocks is still very good, gradually "falling out of value", and some advantageous varieties are also worthy of attention.

There are three more ETF layouts for Hong Kong technology stocks.

For the first batch of Hang Seng Technology ETF products that are still being issued, there are three more ETF approvals for the layout of Hong Kong technology stocks. This wave of fund companies' enthusiasm for actively arranging Hong Kong stock technology stocks is evident.

The fund gentleman understands from the industry and synthesizes the examination and approval schedule of the new fund of the CSRC, at present, there are mainly three categories of scientific and technological ETF products.

The first category is the CSI Hong Kong Stock Exchange Technology ETF. At present, a total of 5 products from Penghua, Jingshun Great Wall, Huatai Perry, Cathay Pacific and Haifu Tong have been approved.

The second category is Hang Seng Hong Kong Stock Exchange China Technology ETF. At present, Ping an and Yinhua products have been approved.

The third category is CSI Hong Kong Science and Technology ETF (QDII), which currently attracts investment and products from the South have been approved.

Judging from the reported situation, these products were basically reported between June and September last year, and the acceptance time is March 16 this year.

It is reported that this kind of science and technology ETF mainly follows the underlying index, generally completely passive index funds, using the complete replication method, that is, to build an indexed investment portfolio according to the benchmark weight of constituent stocks in the underlying index, and to adjust accordingly according to the changes of the underlying index constituent stocks and their weights.

It can be said that in recent years, due to the institutional optimization and reform of the Hong Kong stock market and the direct benefit from the return of US-listed stocks, the market value share of Hong Kong technology stock market has been increasing, and the importance of technology stocks has become increasingly prominent. Under this background, major fund companies are actively arranging investment opportunities for these varieties.

According to a product person, the current layout of these Hong Kong market science and technology indexes by major fund companies is due to the high level of market attention on the one hand and the future investment value of such products on the other.

"the core and most growing target in the Hong Kong Stock Connect is the technology sector, so fund companies are more willing to distribute the Hong Kong stock science and technology index. And the return of foreign Chinese stocks to the Hong Kong stock market is also basically some science and technology companies, and the investment targets will be more abundant in the future. Another fund manager expressed a similar view.

It is understood that index products reported at the same time will come out in the same batch if there are no special problems, and it may become more and more common that index products of the same subject will be approved together in the future. The above-mentioned fund company source said.

"CSI Hong Kong Technology ETF and Hang Seng Hong Kong Stock Connect China Technology ETF are expected to be listed on the Shanghai Stock Exchange, while CSI Hong Kong Technology ETF may be listed on the Shenzhen Stock Exchange. "A fund company source revealed.

The name is so close, what's the difference?

Although the indices tracked by the above-mentioned ETF are those that invest in Hong Kong technology stocks, there are differences in the compilation of the index.

According to a person from a fund company, Hang Seng Technology is a technology index compiled by Hang Seng Company, and stock index futures of this index have been launched. Hang Seng Technology Index is also one of the three flagship indices of Hang Seng Index companies (the three flagship indices are Hang Seng Index, Hang Seng International Index and Hang Seng Technology Index respectively). Therefore, both the market attention and publicity efforts of the Hang Seng Science and Technology Index are very large, and fund companies are also actively laying out.

"in addition, there is the technology index for investing in Hong Kong stocks compiled by the CSI. The technology index for investing in the Hong Kong market compiled by the CSI is divided into two. The investment scope of the CSI Hong Kong Stock Connect Technology Index is within the scope of the Hong Kong Stock Connect, while the CSI Hong Kong Technology Index can exceed the scope of the Hong Kong Stock Connect. Some fund companies that do not have the QDII quota will tend to layout the CSI Hong Kong Stock Connect Technology Index. The above-mentioned fund company source said.

The fund gentleman sorted out the relevant similarities and differences according to the compilation plan of four science and technology indexes.

At present, the top 10 heavyweights in the CSI Science and Technology Index are Wuxi Biologics, Tencent, Meituan-W, Xiaomi Group-W, Baiji Shenzhou-B, JD.com Health, Shunyu Optical Technology, Cinda Biology, China Biopharmaceutical and SMIC.

The top 10 heavyweights in the CSI Hong Kong Science and Technology Index are: Alibaba-SW, Xiaomi Group-W, Tencent, Wuxi Biologics, Kuaishou-W, Meituan-W, JD.com Health, Shunyu Optical Technology, JD.com Group-SW, Cinda Biology.

The top 10 heavyweights in the Hang Seng Technology Index: Aba Baba-SW, Tami Group-W, Meituan-W, Tencent, Kuaiyi-W, Shunyu Optical Technology, JD.com Health, JD.com Group-SW, SMIC, Argyle Health.

Hang Seng Hong Kong Stock Exchange China Technology Index top 10 heavyweights: Xiaomi Group-W, Shunyu Optical Technology, SMIC, Meituan-W, Tencent, Lenovo Group, Kingdee International, China Tower, Qiu Titanium Software, BYD Electronics.

Tencent, Xiaomi Group and other leading Hong Kong stock science and technology companies have all appeared in the above-mentioned four big finger science and technology numbers.

According to an industry source, according to the Wind level I industry classification, the Hang Seng Science and Technology Index industry is mainly distributed in information technology and optional consumption, with more preference to the Internet industry; the CSI Science and Technology Index industry is mainly distributed in information technology, health care, and optional consumption, including biotechnology, medicine, aerospace, environmental protection and other high-quality "new economy" sectors.

Judging from the market trend so far this year, the Hang Seng Hong Kong Stock Connect China Science and Technology Index performed better. As of May 17, the index fell slightly by 0.23%, while compared with the market performance in the past year, the CSI Hong Kong Stock Exchange Science and Technology Index temporarily ranked first with a performance of 63.84%.

Hong Kong stocks have medium-and long-term investment value

Although the enthusiasm of fund companies is very high, in fact, the recent performance of Hong Kong technology stocks is very lacklustre.

For example, the recent trend of Hang Seng Technology is relatively volatile.

Tencent has also been flat for nearly a month.

Fund heavy stocks Meituan-W is a similar trend.

It's the same with Xiaomi and Ali.

In this regard, Haifutong Fund Manager Tao Yifei believes that Hong Kong stocks have experienced a deep correction after the Spring Festival, and we believe that the risk-income ratio of some assets of Hong Kong stocks is still very good, which can be said to have gradually "fallen out of value." In particular, there are many scarce targets that represent the direction of China's new economy, whether from the perspective of performance growth or current valuation, it is still worthy of long-term allocation. Considering some reasons for international relations, US Chinese stocks will continue to be under pressure in the future, which is a better opportunity for Hong Kong stocks, because if overseas markets continue to tighten, then more and more Chinese stocks will inevitably choose to return to the Hong Kong stock market or even the domestic market. As a matter of fact, the HKEx has been actively preparing. Some representative technology companies have been added to the major index, and we may see more new economic elements in the mainstream index next year.

Tao Yifei also said that the 20-year results disclosed by Hong Kong stock companies are basically in line with expectations, especially those companies we focus on, who tend to be positive and optimistic about 2021 or even the longer-term future. Some industries with relatively fast growth, such as property, have even called out the goal of "tenfold increase in income in five years". In addition, sectors such as new energy, science and technology, medicine and education are still the growth trend of the strong. In addition, compared with the A-share market, the volatility of Hong Kong stocks and overseas mature capital markets is actually greater, and indexed investment is also a way to spread risk.

Liu Jun, director of the investment department of Huatai Berry Index, believes that countries that attach importance to scientific and technological research and development in the world, their capital market and scientific and technological level are growing at the same time, and scientific and technological innovation is continuously promoted behind the rise of a great power. With the strength of China's national strength and the substantial increase in investment in science and technology, more and more excellent enterprises choose to embrace the capital market and grow with the market. In the past decade, China has emerged a large number of global science and technology leading enterprises, which have become an important force in the global capital market. Due to historical reasons, these leading technology enterprises have been listed overseas, but now important changes have taken place. With the return of Chinese stocks in the Hong Kong market and many unicorns will be listed one after another in the future, the attractiveness of the Hong Kong stock market is growing day by day, and the proportion of the "new economy" is getting higher and higher.

Cathay Pacific Fund also said that Hong Kong stocks are a typical capital-driven market. From the beginning of the year to the Spring Festival in 2021, a flood of money from the south helped Hong Kong stocks to rise sharply, especially the Hang Seng Technology Index. However, after the Spring Festival, with the tightening of domestic liquidity, the rise of interest rates on overseas US debt, and the intensive introduction of domestic antitrust regulation against technology giants, the Hang Seng Technology Index retreated greatly, the profit effect of Hong Kong stocks weakened significantly, and southward funds turned to wait-and-see. After a pullback in recent months, it is expected that Hong Kong stocks will have a chance to recover from the bottom, but the style may be more balanced, the old economic sector, which has been suppressed for a long time, may have the opportunity to make up for growth, and the overfallen new economic leader will also usher in some bottoming funds. We suggest that we should pay attention to the rebound of prefix cycle stocks in low valuations and the repair of Hong Kong stocks damaged by the epidemic.

In the medium term, the allocation of southward funds to Hong Kong stocks has just begun, and the inflow of Hong Kong stocks is in the initial stage. Based on the new data from public offering funds in the past few years, we speculate that at least trillions of dollars will flow into Hong Kong stocks in the next few years. This does not include insurance funds, annuities and other long-term funds.

In the long run, we are optimistic about the new economic changes in Hong Kong stocks. At present, Tencent, Ali, Meituan, Xiaomi, Kuaishou, Baidu, Baili and other domestic new economic leaders have gathered in Hong Kong stocks, and Hong Kong stocks have become the bridgehead of China's new economy.

Of course, there are also two negative factors for Hong Kong stocks to be wary of this year:

One is the state's antitrust supervision of technology giants. At present, Ali's boots have fallen, but it is not clear that Tencent, Meituan and so on. The regulated sword of Damocles could suppress the mood and valuations of tech giants in the short term.

The second is the domestic credit crunch environment. The tone of our monetary policy this year is "no sharp U-turn", but it is still a U-turn after all. Recently, the debt risks of some central enterprises and urban investment have been exposed, and the overall domestic credit environment is tight, which will also be transmitted to Hong Kong stocks through southward funds.