On the morning of August 4, Hong Kong's three major stock indices opened lower but rose later, all turning positive, with the Hang Seng Tech Index once gaining over 0.5%. The largest A-share ETF tracking the same sector, the Hang Seng Tech Index ETF (513180), followed the index's upward trend, with holdings such as Hua Hong Semiconductor, SMIC, Lenovo Group, and Xiaomi Group leading the gains, while BYD, Alibaba, and Meituan were among the decliners.

Recently, big data on brokerages' monthly top stock picks was officially released, showing continued rising interest in Hong Kong stocks. Among the August top stock picks released by research institutes of 42 brokerages, there were 77 recommendations pointing to 54 Hong Kong stocks, with the "Hong Kong content" increasing significantly month-on-month. The number of recommendations and stocks rose by 16 and 16, respectively, compared to the previous month, representing increases of 26.23% and 42.11%.

Ping An Securities emphasized that the current Hong Kong stock market still enjoys advantages such as low valuations and increasingly active trading driven by the "wealth effect," maintaining a relatively optimistic outlook for its medium- to long-term performance. In July, major indices of both A-shares and Hong Kong stocks recorded gains ranging from 2% to 5%, with southbound capital inflows surging to a total of HKD 135.6 billion, a recent high. The allocation value of Hong Kong stocks centered on Chinese assets remains prominent, and it is recommended to continue focusing on tech sectors such as artificial intelligence, robotics, semiconductors, and industrial software, which represent new quality productive forces.

As of August 1, the latest valuation (PE TTM) of the Hang Seng Tech Index ETF (513180)'s underlying index was 21.23x, at about the 18th percentile since the index's launch on July 27, 2020, meaning the current valuation is lower than 82% of the period since its launch. The Hang Seng Tech Index remains in a historically relatively undervalued range, while its high elasticity and growth potential give it greater upward momentum. Investors without a Hong Kong Stock Connect account may consider using the Hang Seng Tech Index ETF (513180) to gain one-click exposure to China's core AI assets.