Today (June 16), Hong Kong's hard tech sector experienced a minor consolidation following yesterday's surge. The emerging AI model giant Knowledge Atlas (HKEX: 02513) surged over 10% against the market trend after a 32% jump yesterday, pushing its market capitalization beyond HK$700 billion. Meanwhile, the largest and most liquid* ETF tracking Hong Kong Stock Connect information technology, Huabao HK Stock Connect Information Technology ETF (159131), traded within a narrow range, with its on-market price currently down 0.46%. The fund showed a significant intraday premium and recorded a real-time turnover of 750 million yuan.
Industry insiders believe adjustments to the Hong Kong Stock Connect system have been a key support for the recent strength in the AI sector. On June 8, four companies—Biren Technology, Tianshu Zhixin, Knowledge Atlas, and Haizhi Technology—were collectively added to the Hong Kong Stock Connect. This move covers the complete domestic AI industry chain: Biren Technology and Tianshu Zhixin address computing power supply; Knowledge Atlas provides general large language model capabilities; and Haizhi Technology focuses on industrial application. The inclusion of these four companies into the southbound capital pool allows mainland funds to directly invest in core domestic AI assets.
On June 15, Knowledge Atlas announced the launch of its latest flagship model, GLM-5.2. The model offers a long context window of up to 1 million tokens and maintains leading performance in long-range tasks. It will be open-sourced under the MIT license. On the same day, Knowledge Atlas was officially added to the underlying index of the Huabao HK Stock Connect Information Technology ETF (159131), making this index one of the first Hong Kong-listed tech indices to include the company. Other new additions to the index include hardware leaders like Biren Technology, Shenghong Technology, Tianshu Zhixin, and Haizhi Technology. Consequently, the number of constituents in the CSI HK Stock Connect Information Technology Composite Index expanded from 52 to 60 stocks, significantly strengthening its hard tech focus.
Analysts point out that, based on evaluations, the overall programming capabilities of GLM-5.2 have shown marked improvement compared to GLM-5.1. In backend tasks where it already held an advantage, its performance in multiple benchmarks now rivals that of Claude Opus 4.6. There has also been notable enhancement in the aesthetics, precision, and controllability of frontend tasks. Its comprehensive programming capability remains top among domestic models, making it the first domestic model to achieve performance levels comparable to Opus 4.6, thereby gradually widening the gap with other domestic competitors.
Looking at the past six months, the CSI HK Stock Connect Information Technology Composite Index, tracked by the Huabao HK Stock Connect Information Technology ETF (159131), has gained over 23%. This performance has outpaced the Hang Seng Tech Index by 37%, the HK Stock Connect Tech Index by 37%, and the HK Stock Connect Internet Index by more than 52%, demonstrating significantly sharper and more elastic returns.
The statistical period is from November 15, 2025, to June 15, 2026. The annual historical returns for the CSI HK Stock Connect Information Technology Composite Index from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively. Past index performance is not indicative of future results.
Supporting T+0 trading, the Huabao HK Stock Connect Information Technology ETF (159131) is the first, largest, and most liquid ETF of its kind focusing on Hong Kong's hard tech sector. Its feeder fund code is 026755. The underlying index is composed of "80% hardware + 20% software," heavily weighted towards Hong Kong-listed "semiconductors + electronics + computer software." It covers 60 Hong Kong-listed hard tech companies. The combined weight of the two major wafer foundry giants, SMIC and Hua Hong Semiconductor, exceeds 21%, the highest among all indices with linked products in the market. The weight of domestic AI PC leader Lenovo Group is 15.89%, also the highest representation in any market index. The combined weight of PCB leaders Kingboard Holdings and Kingboard Laminates exceeds 10%, again the highest concentration in any market index. Notably, the index excludes large-cap internet companies like Alibaba, Tencent, and Meituan, resulting in a sharper focus that is more conducive to capturing the Hong Kong AI and hard tech market trend.
Data source: China Securities Index Co., Ltd., Shanghai and Shenzhen Stock Exchanges.
Note: "First in the market" refers to the Huabao HK Stock Connect Information Technology ETF being the first ETF to track the CSI HK Stock Connect Information Technology Composite Index. As of June 9, 2026, the latest on-market size of the Huabao HK Stock Connect Information Technology ETF was 1.33 billion yuan, making it the largest among the 8 ETFs currently tracking the CSI HK Stock Connect Information Technology Composite Index. Its average daily turnover year-to-date is 499 million yuan. The annual historical returns of the underlying index, the CSI HK Stock Connect Information Technology Composite Index (HKD), from 2021 to 2025 were: -9.54%, -34.47%, -0.25%, 21.58%, and 39.30% respectively. Past index performance is not indicative of future results.
Fund Fee Note: Subscription and redemption agents for the Huabao HK Stock Connect Information Technology ETF may charge a commission of up to 0.5%. On-market trading fees are subject to the actual charges by securities firms. No sales service fee is charged.
Risk Disclosure: The Huabao HK Stock Connect Information Technology ETF and its feeder fund passively track the CSI HK Stock Connect Information Technology Composite Index, which has a base date of November 14, 2014, and was launched on June 23, 2017. The index constituents mentioned in the material are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form and do not represent the holdings or trading intentions of any fund managed by the fund manager. This product is issued and managed by Huabao Fund. Distributors do not bear responsibility for the investment performance or redemption of the product. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement, and other legal documents to understand the fund's risk-return characteristics and choose products that match their own risk tolerance. Past fund performance does not predict future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment involves risks! The fund manager assesses this fund's risk level as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. Distributors (including the fund manager's direct sales channels and other distributors) evaluate the fund's risk according to relevant laws and regulations. Investors should pay attention to the suitability opinions provided by distributors and base their decisions on the matching results. Suitability opinions from different distributors may not be consistent. The risk rating results of the fund product provided by distributors shall not be lower than the risk rating result determined by the fund manager. There may be differences between the fund's risk-return characteristics described in the fund contract and its risk level due to different assessment factors. Investors should understand the fund's risk-return profile and choose fund products cautiously based on their investment objectives, horizon, experience, and risk tolerance, bearing the risks themselves. The China Securities Regulatory Commission's registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks; investment requires caution.
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