On the morning of August 1, the three major Hong Kong stock indices experienced a collective decline. Among popular ETFs, the Hang Seng Tech Index ETF (513180) fluctuated with the index. Holdings such as Kingsoft and Li Auto led the losses, while NIO, Alibaba, Baidu, Lenovo, and XPeng topped the gains, with NIO surging over 9% at one point.

CITIC Securities noted in a research report that the market has recently exhibited typical "water buffalo" (liquidity-driven) characteristics, and the current strategy suggests increasing allocations to Hang Seng Tech and STAR Market. Specifically, the institution pointed out that the 2025 World AI Conference is expected to catalyze multiple sub-sectors. Meanwhile, with the ongoing implementation of the STAR Market's "1+6" policies and financial support for innovation, the STAR Market—which has significantly lagged since April—may see a catch-up rally. Regarding post-3600-point strategies, the institution believes now remains a good time to balance Hong Kong-A-share allocations, recommending increased exposure to Hang Seng Tech.

Recent capital inflows into Hong Kong's tech sector may reflect bets on a potential catch-up rally. On July 31, the Hang Seng Tech Index ETF (513180)—the largest in its category in A-shares—saw a net inflow of approximately ¥834 million. As of July 31, the ETF recorded a total net inflow of over ¥2.3 billion in the past four trading days.

As of July 31, the ETF's underlying index had a forward P/E (PETTM) of 21.46x, at approximately the 19.48th percentile since its launch on July 27, 2020—meaning current valuations are lower than over 80% of historical levels. Hang Seng Tech remains historically undervalued, with high elasticity and growth potential driving upward momentum. Investors without Stock Connect accounts can gain exposure to China's AI core assets via the Hang Seng Tech Index ETF (513180).