On the morning of August 6, the three major Hong Kong stock indices opened lower collectively, with the Hang Seng Index down 0.15%, the Hang Seng Tech Index down 0.31%, and the Hang Seng China Enterprises Index down 0.21%. In terms of sector performance, most tech and internet stocks declined, while innovative drug concepts generally opened higher, and several chip stocks rose. The largest A-share ETF tracking the same sector, the Hang Seng Tech Index ETF (513180), fluctuated in line with the index. Among its holdings, BYD Electronic, Horizon Robotics, and Tencent Holdings led the gains, while Li Auto, Kingdee International, Meituan, and BYD Company were among the top decliners.

On the capital front, southbound funds resumed net inflows yesterday, with a single-day net purchase of HKD 23.426 billion, setting a new record for daily net inflows since April 10. As of August 5, the cumulative net purchases of southbound funds this year reached HKD 884.382 billion, significantly exceeding the full-year net purchases of last year. Improved liquidity expectations and high valuation attractiveness have made Hong Kong's tech sector a favorite among investors. As of August 5, the Hang Seng Tech Index ETF (513180) saw a total net inflow of RMB 2.561 billion over the past five trading days.

Guotai Haitong pointed out that AI is driving the upward tech cycle, and scarce Hong Kong tech assets have greater upside potential. Since the beginning of this year, large model technology iterations have continued to accelerate. Earlier this year, the Chinese company Deepseek-R1's large model, with its low cost, high performance, and open-source features, is expected to accelerate the commercialization of AI. Hong Kong-listed tech leaders are widely distributed across the entire AI industry chain, covering large model development, commercial applications, and terminal ecosystems. With their leading technological advantages, they stand to fully benefit from the dividends of AI industry transformation.

Recently, expectations for a Fed rate cut have significantly rebounded, and overseas liquidity is expected to continue improving. As of this writing, the CME FedWatch Tool shows a probability of over 90% for a 25-basis-point rate cut at the September FOMC meeting. Against this backdrop, the Hong Kong stock market, especially the tech sector, is poised to benefit significantly. Currently, the Hang Seng Tech Index remains in a historically relatively undervalued range and is more sensitive to shifts in the China-U.S. interest rate differential, making it well-positioned to benefit deeply from looser overseas liquidity. At the same time, the Hang Seng Tech Index is characterized by high elasticity and high growth, meaning its upward momentum will be even stronger once market conditions improve. Investors without a Hong Kong Stock Connect account can gain exposure to China's core AI assets through the Hang Seng Tech Index ETF (513180) with a single click.