On the morning of November 13, Hong Kong's three major indices opened lower collectively. The Hang Seng Index fell 0.53% to 26,779.48 points, the Hang Seng Tech Index dropped 0.82%, and the Hang Seng China Enterprises Index declined 0.50%. In terms of sector performance, tech and internet stocks mostly fell, gold stocks generally rose, innovative drug concepts opened higher, and oil stocks pulled back. After the market opened, the A-share market's largest ETF tracking the same sector, the Hang Seng Tech Index ETF (513180), followed the index with a slight decline. Among its holdings, Hua Hong Semiconductor and NetEase led the gains, while Tencent Music, JD.com, Li Auto, Alibaba, and Meituan led the declines.

On the news front, the Hong Kong stock market will enter a critical earnings disclosure window starting this week. On November 13 (Thursday), important constituents of the Hang Seng Tech Index, such as Tencent Holdings, JD.com, Bilibili, and SMIC, will release their third-quarter earnings reports. The market will focus on the AI commercialization progress and earnings performance of these leading tech companies.

Huaxi Securities pointed out that in the Hong Kong market, funds are temporarily avoiding tech stocks. Southbound funds recorded a net outflow of HKD 3.4 billion from Alibaba on the 12th, possibly to avoid risks related to its earnings being affected by the food delivery competition. However, the avoidance of tech stocks by funds may be in anticipation of better buying opportunities. After potential risks such as corporate earnings disclosures and the Fed's interest rate decision in December materialize, Hong Kong tech stocks are expected to rebound.

Public information shows that as of November 12, the latest valuation (PE TTM) of the Hang Seng Tech Index ETF (513180) was only 23.08 times, at about the 30.7% percentile since the index's launch. This means the current valuation is lower than nearly 70% of the index's historical levels, placing it in an undervalued range. Looking ahead, Hong Kong tech stocks are set to benefit more from the current industry trends represented by AI. Against the backdrop of the Fed's rate cuts, foreign capital inflows may exceed expectations, coupled with continuous increases in southbound funds, the future of the Hang Seng Tech Index looks promising. Investors without a Hong Kong Stock Connect account can use the Hang Seng Tech Index ETF (513180) to conveniently invest in China's core AI assets. (Offshore Link A/C: 013402/013403)