Breaking news: Hong Kong stocks surging! Semiconductors and pharmaceuticals leading the charge, Huabao Fund Hong Kong Stocks Information Technology ETF (159131) surges over 3% on volume! Internet leaders make aggressive moves!

On March 16, Hong Kong stocks suddenly surged, outperforming all global markets in a single day! The Hang Seng Index closed up 1.45%, and the Hang Seng Tech Index soared 2.69%. On the news front, Wall Street’s “big short” Michael Burry publicly stated that the Hang Seng Tech Index is significantly undervalued. Additionally, Middle Eastern funds are frequently returning to Hong Kong.

The healthcare sector led the rally, with innovative drugs taking the lead. Medical stocks followed closely, with the Hong Kong Stock Connect Innovation Drug ETF (520880) and the Hong Kong Stock Connect Core Medical Assets ETF (159137) both rising over 2%, ending a three-day losing streak.

The semiconductor industry chain may see a new wave of price increases, with chip stocks exploding in the afternoon. The only market-wide Hong Kong Information Technology ETF (159131) jumped 3.13%, closing at the intraday high! Major internet giants like Xiaomi and Tencent collectively advanced, with the Hong Kong Internet ETF (513770), a core AI tool, rising 2.44% and successfully continuing its gains.

Is a turning point near for Hong Kong stocks? Analysts suggest that the market bottom is gradually forming, but a sustained rebound still requires patience. It is recommended to maintain a “barbell strategy” in the short term, with core holdings focused on high-dividend stocks, energy chains, and power operators, while the offensive side concentrates on hard tech such as semiconductor equipment. Although the valuation of Hong Kong internet stocks is at a historic low, earnings expectations are still being revised downward. It’s advisable to buy on dips, in batches, with right-side confirmation.

The A-share market bottomed out and rebounded today. The Shanghai Composite fell 0.26% to 4,084.79 points, after dropping over 1% earlier. The afternoon rally driven by hard tech lifted the ChiNext Index by 1.41%, with a total market turnover of 2.34 trillion yuan.

Supported by strong chip stocks, A-shares also surged in the afternoon. Biyi Storage and Huahong Semiconductor both soared over 10%. The Sci-Tech Innovation Chip ETF (589190), which focuses on the entire chip industry, sharply rose from deep water, closing up 2.12% with an intraday range of nearly 4%!

Kweichou Moutai announced a policy to sell non-standard products, causing its stock price to jump 3.29%. The high-liquor-content food and beverage ETF (515710) rose 1.42%, reclaiming the 20-day moving average. The current P/E ratio percentile of the index is below 3%, highlighting its cost-effectiveness.

On the downside, cyclical stocks continued to adjust. Popular chemical ETFs (516020) and non-ferrous metals ETFs (159876) both fell more than 3%. The power sector also experienced high-level volatility, with the Power ETF (159146) down 2.9%, marking a second consecutive decline.

【ETF Hot Review】Next, let’s focus on the trading and fundamentals of Hong Kong stocks in the information technology, healthcare, and internet sectors.

1. Hong Kong stocks suddenly received good news! The chip industry chain shows strong resilience, with the only market-wide Hong Kong Information Technology ETF (159131) gaining 3.13% on increased volume.

Hong Kong stocks surged collectively during the session, especially the hard tech sector represented by the chip and semiconductor industry chain. The Hong Kong Stock Connect Information C Index rose 2.40%. The only *Hong Kong Information Technology ETF (159131) opened with wide fluctuations near the water surface, then suddenly surged in the afternoon, closing up 3.13% at the day’s high, breaking through the 5-day and 10-day moving averages.

The rally today may be driven by both positive news and technical factors: 1) According to China Securities Journal, some financial insiders say Middle Eastern clients are inquiring about investing in Hong Kong stocks and establishing family offices in Hong Kong, considering it a safe haven; 2) Wall Street’s “big short” Michael Burry publicly stated that the plunge of the Hang Seng Tech Index is a rare case of valuation and sentiment-driven compression; 3) Technical indicators show oversold and double bottom features.

From a valuation perspective, “Hong Kong chip stocks” offer attractive investment value. As of March 13, the Hang Seng Tech ETF (159131) had a latest P/E ratio of 32.88x, at the 27.56% percentile over the past three years, still over 58% below its February high.

This points to a super cycle for Hong Kong chips! The T+0 Hong Kong chip industry chain ETF—the first ETF focusing on the “Hong Kong chip” industry chain—is composed of “70% hardware + 30% software,” with heavy holdings in Hong Kong semiconductor, electronics, and software companies. It includes 45 hard tech companies, with China’s SMIC weighting at 14.07%, Xiaomi Group-W at 12.41%, and Huahong Semiconductor at 7.47%. Excluding large-cap internet giants like Alibaba, Tencent, and Meituan, it offers sharper focus and easier capture of the AI hard tech rally in Hong Kong. (As of March 11, 2026)

2. Hong Kong healthcare stocks rebound again—opportunity ahead? The Hong Kong Stock Connect Innovation Drug ETF (520880) and the Hong Kong Stock Connect Medical ETF both rose over 2%, ending a three-day decline.

Hong Kong healthcare stocks joined the rebound! Innovation drugs led the charge, with the Hong Kong Stock Connect Innovation Drug ETF (520880) rising 2.95% to close at the intraday high, with a turnover of 465 million yuan, up over 30% from the previous day.

Major holdings like Kangfang Biotech, CSPC, and Sihuan Pharmaceutical all gained over 5%. A new IND for a drug treating pulmonary hypertension by Changfeng Pharmaceutical was accepted, with its stock soaring nearly 43% during the session.

The Hong Kong Stock Connect Medical sector gained momentum in the afternoon. Leading internet healthcare company JD Health surged 5%, AI pharmaceutical leader Jintai Holdings rose 4.11%, and the Hong Kong Stock Connect Medical ETF (159137) increased 2.04%, ending a three-day decline.

The Hong Kong Stock Connect Medical ETF (159137) tracks an index representing Hong Kong’s medical innovation, heavily weighted toward leading innovation drug companies, covering AI medical, brain-machine interfaces, high-end medical devices, and other hot themes. Among its 50 constituents, 41 are “A+ Hong Kong” exclusive stocks.

Policy-wise, the 2026 government work report elevated the biopharmaceutical industry to a pillar industry alongside low-altitude economy, integrated circuits, and aerospace. Eastmoney Securities suggests focusing on the long-term development of biomedicine, especially the rising status of innovative drugs and medical devices that lead the industry.

On the news front, on March 9, the first batch of Hong Kong Stock Connect targets for 2026 were adjusted, adding 42 stocks, including 13 unprofitable biotech firms, accounting for 31%, a record high for biotech inclusion. Foreign institutions note that China’s biotech sector remains stable with resilient innovation as a long-term focus.

【Special Reminder on the Hong Kong Stock Connect Innovation Drug ETF (520880) Rebalancing】

On March 9, the ETF’s underlying index (Hang Seng Hong Kong Stock Connect Innovation Drug Select Index) was rebalanced, with 13 stocks removed and 13 added, increasing total holdings to 50. The update further enhances the index’s relative advantage:

• Newly added innovation drug stocks are incorporated immediately, ahead of most similar indices.
• It covers all 50 innovation drug R&D companies, making it the most comprehensive Hong Kong Stock Connect index for innovation drug R&D.

3. Middle Eastern funds “return to Hong Kong,” creating a new narrative! Leading stocks move aggressively! The Hong Kong Stock Connect Internet ETF (513770) rises over 2%.

Major internet giants rally together: Xiaomi Group-W up over 5%, Meituan-W over 3%, Tencent Holdings over 2%, Alibaba-W over 1%. The Hong Kong Internet ETF (513770), a core AI tool, accelerated in the afternoon, closing up 2.44%. The Hong Kong Large Cap 30 ETF (520560), with a “tech + dividend” barbell strategy, gained 1.97%.

Market catalysts are leading Hong Kong stocks into a new narrative.

On one hand, Hong Kong’s low valuation, offshore market, and unique assets attract overseas risk-averse funds. Reports suggest that Middle Eastern investors, who moved to Singapore or Dubai earlier, are now considering reallocating some assets or businesses back to Hong Kong.

Additionally, Wall Street’s “big short” Michael Burry recently said that the plunge of the Hang Seng Tech Index is a rare case of valuation and sentiment-driven compression, presenting a historic investment opportunity.

On the other hand, AI commercialization is accelerating. Alibaba announced the launch of an enterprise-level AI flagship application to compete in the AI agent market. Openclaw provided directions for AI application commercialization, with token consumption skyrocketing. Platform-based internet companies, leveraging their data, scenarios, and platforms, are speeding up AI commercialization and revaluation.

This week, Tencent Holdings and Alibaba will release their latest earnings reports. Huayuan Securities believes that the platform advantages of leading internet companies are reflected in their resilient fundamentals. Meanwhile, R&D and deployment of underlying AI technologies, as well as the implementation of AI applications, remain core to industry development and market trading. It is recommended to continue monitoring the long-term narratives and progress in AI.

Seize the AI commercialization year of 2026—focus on the Hong Kong AI core tools. The Hong Kong Internet ETF (513770) and its linked funds (A-shares 017125; C-shares 017126) track the CSI Hong Kong Internet Index, with top holdings including Alibaba-W, Tencent, Xiaomi, and other AI application companies, demonstrating strong leadership.

For those optimistic about Hong Kong tech but seeking lower volatility, the only *Hong Kong Large Cap 30 ETF (520560) features a “tech + dividend” barbell strategy, with holdings in high-growth tech stocks like Alibaba and Tencent, as well as stable high-dividend stocks like China Construction Bank and Ping An, making it an ideal long-term core holding.

Data sources: CSI Index Co., Shanghai-Shenzhen-Hong Kong Exchanges, etc. Note: “Only ETF tracking CSI Hong Kong Stock Connect Information Technology Composite Index” and “Only ETF tracking Hang Seng China (Hong Kong-listed) 30 Index” refer to unique market-wide ETFs.
*Institutional views are based on sources such as Dongcai Securities’ 20260310 “Pharmaceutical & Biotech Weekly: Biomedicine’s Elevated Strategic Status, Long-term Opportunities in Innovation Drugs and Elderly Care.” Huayuan Securities’ 20260315 “Apple Cuts App Store Commission, Focus on Major Company Earnings Guidance.”

Note: ETF funds do not charge sales service fees. When investors subscribe or redeem, brokers may charge commissions up to 0.5%, including related fees from exchanges and registries. For detailed fee rates, see each fund’s legal documents.

Risk warning: The Hong Kong Stock Connect Information Technology ETF passively tracks the CSI Hong Kong Stock Connect Information Technology Composite Index, launched on November 14, 2014, and published on June 23, 2017. The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index, launched on December 30, 2016, and published on January 11, 2021. The Hong Kong Stock Connect Innovation Drug ETF and its linked funds passively track the Hang Seng Hong Kong Stock Connect Innovation Drug Select Index, launched on December 31, 2020, and published on July 17, 2023. The CSI Hong Kong Stock Connect Healthcare Theme Index was launched on December 31, 2018, and published on July 21, 2022. The stocks mentioned are for index component reference only and do not constitute recommendations or guarantees. All information (including stocks, comments, forecasts, charts, indicators, theories, etc.) is for reference only. Investors are responsible for their own investment decisions. The views, analyses, and forecasts in this article do not constitute investment advice. The company is not responsible for any direct or indirect losses resulting from the use of this content. Investors should carefully read the fund’s legal documents, understand the risk-return profile, and choose products suitable for their risk tolerance. Past performance does not guarantee future results. The risk levels of the mentioned ETFs are R4—medium-high risk, suitable for aggressive (C4) and above investors; other funds are R3—medium risk, suitable for balanced (C3) and above investors. Suitability opinions are subject to sales institutions’ assessments. The risk ratings are provided by the fund managers and may differ among sales channels. Investors should understand the fund’s risk-return profile and make cautious choices based on their investment goals, horizon, experience, and risk capacity. The China Securities Regulatory Commission’s registration of these funds does not imply any judgment or guarantee of their investment value, market prospects, or returns. Investment involves risks; please proceed cautiously.