Over 50 billion yuan in net capital inflow into Hong Kong stock ETFs within the year

Reporter Peng Yansong

Recently, the technology growth sector in the A-share and Hong Kong stock markets has experienced significant recovery, with AI-related themes remaining active. At the same time, funds are heavily entering the Hong Kong stock market through ETF instruments, with the advantages of low valuation and industry transformation dividends forming the core investment appeal of the Hong Kong market.

Wind data shows that as of March 10, the total net inflow of ETFs investing in the Hong Kong stock market this year reached 50.449 billion yuan, compared to a net outflow of 21.033 billion yuan in the same period last year, indicating a clear reversal in capital flow.

The Hang Seng Technology Theme ETF has become the main driver of capital inflows. The Hang Seng Technology ETF managed by Huatai-PineBridge Fund led the net inflows this year, reaching 14.194 billion yuan; other Hong Kong stock ETFs such as the Hang Seng Tech Index ETF, E Fund Hang Seng Tech ETF, Tianhong Hang Seng Tech ETF, and Internet ETF also saw net inflows of over 6 billion yuan each.

From the perspective of public fund issuance, market attention to the Hong Kong tech sector remains strong. Data shows that as of March 11, 12 funds investing in the Hong Kong stock market, including ICBC Credit Suisse Hong Kong Stock Connect Internet ETF and Industrial Securities Hong Kong Stock Connect Internet ETF, are currently being issued, with more than 10 other funds covering technology themes in the pipeline.

“The current influx of capital into the Hong Kong tech sector can be mainly attributed to the ‘certainty of valuation recovery’ and ‘growth driven by industry transformation,’ creating a resonance of value,” said Tian Lihui, a finance professor at Nankai University. This reflects market confidence in AI-empowered technological growth.

From a valuation perspective, the Hang Seng Tech Index has retraced over 20% from its peak in October 2025, with the dynamic P/E ratio falling to around 20 times. Tian Lihui believes that for medium- and long-term funds, the significant correction in the Hong Kong market means risks have been fully released. The net inflow of southbound funds this year is based on rational valuation judgment.

From the industry transformation angle, Wu Wanying, senior researcher at Tianyi Digital Economy Think Tank, stated that the current AI wave is fundamentally reshaping the growth paths of Hong Kong tech giants. In terms of valuation, the market is gradually moving away from past reliance on traffic and instead giving valuation premiums to related sectors and targets driven by technology.

Xing Cheng, fund manager of the Hang Seng Qianhai Hong Kong Stock Connect Value Hybrid Fund, said that after recent adjustments, the absolute valuation of the Hang Seng Tech Index is close to historical lows, potentially offering a high safety margin. Looking ahead, the scarce Hong Kong tech sector has considerable upside potential. It is recommended to focus on investment opportunities in broad growth sectors represented by internet technology, pharmaceuticals, and new consumption.