On the morning of October 17, the three major Hong Kong stock indices collectively moved lower, with the Hang Seng Tech Index opening lower and continuing to decline, falling over 2%. In the market, technology stocks collectively weakened. The largest A-share ETF tracking the same sector, the Hang Seng Tech Index ETF (513180), followed the index downward. Among its holdings, Horizon Robotics, Hua Hong Semiconductor, SMIC, etc., led the declines, while NIO, Haier Smart Home, etc., led the gains, with NIO once rising over 4.5%.

On the news front, the lawsuit filed by Singapore's Government Investment Corporation (GIC) against NIO has drawn market attention. GIC accused NIO of overstating revenue and profits, misleading investors, and causing GIC to suffer investment losses. Yesterday, as of the market close, NIO fell nearly 9%. On the evening of October 16, NIO responded, stating that this case is not a new incident but stems from a short report released by short seller Grizzly Research in 2022. An independent internal investigation showed that the allegations in the short report had no factual basis.

Public information shows that as of October 16, the latest valuation (PE TTM) of the underlying index of the Hang Seng Tech Index ETF (513180) is 22.88 times, at about the 28.79% percentile of historical valuations since the index's launch. This means that valuations were higher over 70% of the time historically. The Hang Seng Tech Index remains in a historically relatively undervalued range, while characteristics like high volatility and high growth give it greater upward potential. Investors without a Hong Kong Stock Connect account can potentially use the Hang Seng Tech Index ETF (513180) to conveniently invest in China's core AI assets. (Offshore Link A/C: 013402/013403)