On the afternoon of August 21, the three major Hong Kong stock indices experienced slight declines. In the market, most large tech stocks trended lower, pharmaceutical stocks saw across-the-board gains, and infrastructure stocks performed actively. The recently popular Hang Seng Tech Index ETF (513180) fell over 0.5%. Among its holdings, Sunny Optical Technology and BYD Electronic led the declines, while NIO, Ali Health, JD Health, and Kuaishou were among the top gainers.

On the news front, it was reported that China's ETF scale reached $681 billion in assets under management in July, surpassing Japan ($668 billion) to become Asia's largest ETF market. Against the backdrop of continuous expansion in domestic passive investing, there has been a renewed focus on the tech sector: recent discussions on Hong Kong's tech sector have increased, with obvious signs of capital "scrambling for shares." Specifically, at the instrument level, over the nearly 20 trading days up to August 20, the A-share market's largest same-sector Hang Seng Tech Index ETF (513180) saw a net inflow of approximately ¥4.925 billion, reflecting a phased increase in the allocation intensity to Hong Kong tech themes. As of August 20, the ETF's latest scale reached ¥35.807 billion, setting a new record high since its inception.

Guotou Securities believes that, based on the 60-day rolling yield difference, there has historically been a clear alternating rotation between the ChiNext Index and the Hang Seng Tech Index. When the ChiNext Index's gains lead the Hang Seng Tech Index by 20 percentage points, it often signals that the Hang Seng Tech Index is poised for a catch-up rally. The current yield difference has reached 18 percentage points, suggesting that the Hang Seng Tech Index, which shares the attributes of "heavy institutional holdings" and "anti-barbell strategy," may see a catch-up rally as the ChiNext Index leads significantly and approaches new highs. Shenwan Hongyuan points out that with the gradual release of mid-year report season performances, sectors with previously low earnings expectations are likely to regain market favor based on "priced-in negative expectations + light trading." The current period has entered a left-side timing for active positioning in Hong Kong stocks, especially in heavyweight sectors represented by the internet and Hang Seng Tech Index. Additionally, sectors such as cycles and mass consumption also have room for catch-up gains.

Against the backdrop of the Shanghai Index hitting a decade-high and the ChiNext Index breaking through recent highs, several institutions recently believe that the Hang Seng Tech Index is poised for a catch-up rally. Public information shows that the A-share market's largest same-sector Hang Seng Tech Index ETF (513180) includes 30 leading Hong Kong tech companies, covering both software and hardware technologies. Its holdings are deeply focused on the upstream, midstream, and downstream of the AI industry chain, with companies like Alibaba, Tencent, Meituan, SMIC, and BYD expected to become China's "Magnificent Seven" tech stocks. Investors without a Hong Kong Stock Connect account can use the Hang Seng Tech Index ETF (513180) to one-click allocate to China's core AI assets.