Funds continue to increase holdings! The Hang Seng Tech ETF Tianhong (520920) has had a net inflow of over 2.6 billion yuan in the past 30 days, with its valuation at the lowest point in nearly a year.

Ye Feng, Daily Economic News

Yesterday, Hong Kong’s technology stock sector rose. For the relevant ETFs, the Hang Seng Technology ETF Tianhong (520920) target index closed up 2.64%, with trading volume reaching 219 million yuan; the turnover rate was 1.46%.

What’s worth noting is that, according to Wind, the Hang Seng Technology ETF Tianhong (520920) has achieved continuous “capital inflows” over the past 15 trading days (March 11, 2026 – March 31, 2026). Over the most recent 30 trading days, it recorded a total net capital inflow of 2.636 billion yuan. As of March 31, 2026, the fund’s latest size was 147.75 billion yuan, with a year-to-date increase rate of about 31.94%, ranking first among funds in the same category.

Some analysts believe that in the current upswing wave of the AI-led technology cycle, the fundamentals of Hong Kong tech assets—characterized by scarcity—are generally better. Looking ahead to the market, with the Federal Reserve restarting rate cuts, southbound funds are expected to keep flowing in. Under the joint catalysts of resonance between domestic and foreign capital and the continuously strengthening AI narrative, a re-pricing of the Hang Seng Technology valuation is on the cards. Investors without a Stock Connect account to Hong Kong may also be able to deploy China’s core AI assets with one click through the Hang Seng Technology ETF Tianhong (520920). The ETF also comes with 2 off-exchange connection funds (Class A: 012348; Class C: 012349).

Data from the past year shows that the Hang Seng Technology Index’s price-to-book ratio is 2.51x. Its current valuation is at the 0.00% percentile over the past year, lower than the time when it was at the 100.00% percentile over the past year. From the perspective of valuation levels, the index already offers a relatively high cost-performance advantage.

On the news front, according to Huatai Securities, on March 26 the Hang Seng Index Company optimized the calculation and compilation rules for the Hang Seng Technology Index, clarifying standards for six major technology sub-themes; the network and intelligentization themes together account for more than 80%, and index transparency and technology purity have been significantly improved. According to Guotai Securities, the National Data Bureau recently clarified Token’s positioning as a value anchor in the intelligent era. In March 2026, China’s average daily Token calls have already exceeded 140 trillion times, growing more than a thousand-fold compared with the start of 2023. Also, according to a commentary on the Economic Daily that was reprinted on the website of the State Administration for Market Regulation, regulators have halted the “money-burning” takeaway delivery price-war battle, requiring platform-economy competition to return to the track of technological innovation and service optimization. Core heavyweight stocks such as Meituan and Alibaba, which had previously been deeply mired in price wars, have now received a loosening of policy.

Guoyuan International said that although the market is temporarily suppressed by risk-avoidance sentiment, it expects a turning point after the negative factors are exhausted in mid to late March. The Federal Reserve’s rate-cut signal will be a key variable. If technology giants can demonstrate how AI boosts core business, it will become an important driver for valuation repair.

Daily Economic News