Fund group stocks collectively surge! Fund managers: Institutional investors' confidence in Hong Kong stocks is being restored.

Hong Kong stocks, which experienced a deep correction, finally ushered in a long-awaited rebound.

On April 1st, major sectors of the Hong Kong stock market all surged. By the close, the Hang Seng Tech Index rose 2.29%, and the Hang Seng Healthcare Index soared 6.39%.

From the market perspective, fund-backed stocks became the core driving force of the rebound, including sectors such as robotics, innovative pharmaceuticals, retail consumption, artificial intelligence (AI), and internet entertainment. The key targets within each sector all recorded significant gains, showing a comprehensive rebound.

Specifically, the robotics sector performed outstandingly, with Qianhai Open Source Fund’s heavy holdings U-BTech jumping 17.10% in a single day, and MicroPort Robotics, held by Dongcai Fund, rising nearly 9%. The innovative drug sector also moved higher, with Invesco Great Wall’s heavy holding Lepu Biotech-B closing up 14.42%, and Harvest Fund’s top holding San Sheng Pharmaceutical increasing about 12%. In retail consumption, Bank of China Fund’s major holding Buluoke rose 6.09%, and Minsheng JiaYin Fund’s holding Oriental Selection gained 10.46%. In the AI sector, FuGuo Fund’s major holding Jing Tai Holdings increased 8.10%. The mobile internet entertainment sector also showed a clear recovery, with Ping An Fund’s major holding Bilibili-W rising nearly 7%, and Southern Fund’s holding Chizi City Technology surging 10.43%.

Notably, on April 1st, the Hong Kong airline sector led the entire market with an 8.58% increase, becoming the most direct reflection of the consumption recovery, which also aligns with statistical data. Recent data from the National Bureau of Statistics shows that in February, the Consumer Price Index (CPI) rose 1.3 year-on-year, hitting a nearly three-year high, with service consumption prices rising notably.

Airline tickets, transportation leasing, travel agency fees, and hotel accommodation prices increased by 29.1%, 19.8%, 12.5%, and 5.4%, respectively. The rebound in travel-related prices directly reflects the recovery in residents’ offline consumption demand and provides solid fundamental support for sectors like airlines, hotels, and tourism. Public funds such as GF Ruyi Leading Fund have heavily allocated to these sectors, with star fund manager Lin Yingrui continuously buying into the consumption recovery sector. The top six holdings of this fund are all airline stocks, resulting in substantial gains during this rebound.

Regarding the current expansion of the Hong Kong stock market rebound from a local to a broader scope, many fund managers believe it is related to the confidence recovery after undervaluation.

A consumer industry fund manager in South China stated that the current southbound capital deployment is no longer limited to a few popular sectors, with coverage continuously expanding, reflecting that institutional confidence in Hong Kong stocks is recovering. The core support lies in the overall valuation of Hong Kong stocks being at a historically low level, offering high cost-effectiveness. February’s CPI data further confirmed the trend of domestic demand recovery, supporting the spread of the rebound to consumption and service sectors, ultimately creating a scenario where technology, consumption, pharmaceuticals, and resource cycles dance together.

However, public fund professionals believe that the rebound in Hong Kong stocks may not be achieved overnight. Future focus should remain on performance realization, with high-dividend, high-growth stocks favored by foreign investors continuing to attract attention.

Wei Fengchun, Chief Economist at Chuangjin Hexin Fund, believes that the external shocks caused by Middle East geopolitical conflicts will not dissipate quickly. Even if conflicts ease, the market still needs to adjust its pricing logic. Geopolitical disturbances push up energy and shipping costs. After a phase of risk appetite recovery, capital preferences for hard assets and high-dividend sectors will persist. Wei Fengchun suggests that in April, allocation strategies should focus on new productive forces such as AI export chains and high-end manufacturing, while also considering sectors benefiting from consumption recovery and fiscal stimulus.

“Many sentiment indicators have already signaled bottoming out, but the sustainability of the rebound still depends on performance verification,” said an industry researcher from a Shenzhen-based fund company. They also noted that the style of Hong Kong stocks is rapidly shifting with the marginal changes in Middle East geopolitical conflicts: defensive assets outperform when tensions escalate, while technology growth leads when tensions ease. Whether the market can continue to strengthen depends on two key variables: first, whether geopolitical risks further ease and attract overseas capital back; second, whether earnings can meet optimistic expectations, providing clearer guidance for allocation.

Qushijie, Deputy General Manager of the International Business Department at Great Wall Fund, believes that since October 2025, the Hang Seng Tech Index has undergone a correction, with a total decline of over 25%. Valuations and stock prices have adjusted sufficiently. Among Hong Kong stocks, leading mainland technology and internet giants have stable traffic barriers and profitability foundations, making them highly valuable for long-term allocation. He emphasizes that Hong Kong stocks are mainly driven by institutional investors, with stock prices closely tied to fundamentals. Stock selection emphasizes performance stability, reasonable valuation, and stable gross profit margins, giving these targets stronger operational barriers and sustainable shareholder returns.

Editor: Yang Yucheng