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wrote a column · Feb 11 16:10 ·

Why is 2026 the pivotal year for allocating to the Hang Seng Tech Index?

Amid the global wave of artificial intelligence (AI), the technology sector is experiencing another productivity leap following the internet era. At the start of 2026, not only is the global liquidity environment improving, but Chinese tech assets are also reaching a critical turning point. As China Merchants Securities Asset Management (Hong Kong)’s flagship product, the China Merchants Hang Seng Tech Index ETF (3423.HK) is an efficient tool for investors to gain one-stop exposure to Chinese technology. – Dual Advantages of Technology With U.S. Treasury yields slowly declining, there is a growing need for global capital reallocation. Meanwhile, under the expectation of a weaker dollar, the appeal of RMB-denominated assets has significantly rebounded. Against this backdrop, Chinese tech stocks exhibit unique 'dual advantages': First, compared to the high valuations of U.S. tech giants (Magnificent 7), leading Chinese tech companies have undergone thorough adjustments, much like a compressed spring ready to rebound with tremendous potential. Second, Chinese tech firms have accelerated their departure from the 'contract manufacturing' era, achieving breakthrough innovations in advanced chips, artificial intelligence, and autonomous driving. – Three Key Sectors Reshaping the Future The Hang Seng Tech Index, closely tracked by the China Merchants Hang Seng Tech Index ETF (3423.HK), acts as a dynamic 'map' capturing industrial transformations. Based on the 2025 supply chain analysis, this product focuses on three core growth sectors: first, the chips and semiconductors represented by SMIC and Hua Hong Semiconductor, which benefit from the AI explosion...
Amid the global wave of artificial intelligence (AI), the technology sector is experiencing another productivity leap following the internet era. At the start of 2026, not only is the global liquidity environment improving, but Chinese tech assets are also reaching a critical turning point.
As China Merchants Securities Asset Management (Hong Kong)’s flagship product, the China Merchants Hang Seng Tech Index ETF (3423.HK) is an efficient tool for investors to gain one-stop exposure to Chinese technology.
– Dual Advantages of Technology
As US Treasury yields slowly decline, global capital faces the need for reallocation. At the same time, expectations of a weaker US dollar have significantly increased the attractiveness of Renminbi-denominated assets. Against this backdrop, Chinese technology stocks demonstrate a unique 'dual advantage.' First, compared to the lofty valuations of US tech giants (Magnificent 7), leading Chinese tech companies have undergone substantial adjustments, akin to a spring being compressed to its limit, possessing immense rebound potential. Second, Chinese tech firms have accelerated their shift away from the 'contract manufacturing' era, achieving breakthroughs in independent innovation in cutting-edge areas such as advanced chips, artificial intelligence, and smart driving.
– Three Key Tracks Reshaping the Future
The Hang Seng Tech Index ETF (3423.HK) managed by China Merchants closely tracks the Hang Seng Tech Index, which serves as a dynamic map capturing industrial transformation. Based on supply chain analysis for 2025, this product focuses on three core growth sectors: first, chips and semiconductors represented by SMIC and Huahong Semiconductor, benefiting from the explosive demand for computing power brought by AI, with a solid foundation in the logic of domestic substitution. Next is the commercial application of AI technologies, ranging from Tencent and Baidu's algorithmic models to SenseTime and Kingsoft Software’s specialized applications. Chinese companies are accelerating the deployment of AI use cases (e.g., e-commerce, office work, entertainment), with a number of monetizable applications and services emerging in areas like e-commerce. Lastly, smart driving and robotics, where new forces in vehicle manufacturing such as BYD, Li Auto, and XPeng not only lead in sales but also match global top-tier levels in autonomous driving technology. Combined with hard tech companies like Horizonrobot, they form a complete ecosystem poised to transform human mobility.
– The 'Hong Kong Version of Nasdaq' with Survival of the Fittest
The Hang Seng Tech Index (HSTECH) is not only the 'Hong Kong version of Nasdaq,' but also an evolving investment system. The index selects the 30 largest tech leaders by market capitalization and features a fast-track IPO inclusion mechanism. For example, between 2024-2025, the index incorporated new AI-focused tech pioneers while promptly removing underperforming old constituents, ensuring that the portfolio consistently represents the forefront vitality of China's technology sector.
The year 2026 marks a pivotal moment for Chinese technology companies transitioning from 'followers' to 'leaders.' Whether driven by confidence revaluation due to technological breakthroughs or shifts in macro liquidity, the technology sector is gaining new momentum for development.
China Merchants Hang Seng Tech Index ETF (3423.HK) – Focused on China’s tech sector, capturing the industry’s long-term growth potential.
Amid the global wave of artificial intelligence (AI), the technology sector is experiencing another productivity leap following the internet era. At the start of 2026, not only is the global liquidity environment improving, but Chinese tech assets are also reaching a critical turning point. As China Merchants Securities Asset Management (Hong Kong)’s flagship product, the China Merchants Hang Seng Tech Index ETF (3423.HK) is an efficient tool for investors to gain one-stop exposure to Chinese technology. – Dual Advantages of Technology With U.S. Treasury yields slowly declining, there is a growing need for global capital reallocation. Meanwhile, under the expectation of a weaker dollar, the appeal of RMB-denominated assets has significantly rebounded. Against this backdrop, Chinese tech stocks exhibit unique 'dual advantages': First, compared to the high valuations of U.S. tech giants (Magnificent 7), leading Chinese tech companies have undergone thorough adjustments, much like a compressed spring ready to rebound with tremendous potential. Second, Chinese tech firms have accelerated their departure from the 'contract manufacturing' era, achieving breakthrough innovations in advanced chips, artificial intelligence, and autonomous driving. – Three Key Sectors Reshaping the Future The Hang Seng Tech Index, closely tracked by the China Merchants Hang Seng Tech Index ETF (3423.HK), acts as a dynamic 'map' capturing industrial transformations. Based on the 2025 supply chain analysis, this product focuses on three core growth sectors: first, the chips and semiconductors represented by SMIC and Hua Hong Semiconductor, which benefit from the AI explosion...
$CMS Hang Seng Tech Index ETF (03423.HK)$ $BABA-W (09988.HK)$ $TENCENT (00700.HK)$ $XIAOMI-W (01810.HK)$ $NTES-S (09999.HK)$ $MEITUAN-W (03690.HK)$ $KUAISHOU-W (01024.HK)$ $SMIC (00981.HK)$ $BYD COMPANY (01211.HK)$ $JD-SW (09618.HK)$ $LI AUTO-W (02015.HK)$ $TRIP.COM-S (09961.HK)$ $XPENG-W (09868.HK)$ $BIDU-SW (09888.HK)$ $LENOVO GROUP (00992.HK)$ $HAIER SMARTHOME (06690.HK)$ $JD HEALTH (06618.HK)$ $KINGDEE INT'L (00268.HK)$ $SUNNY OPTICAL (02382.HK)$ $BILIBILI-W (09626.HK)$ $MIDEA GROUP (00300.HK)$ $SENSETIME-W (00020.HK)$ $KINGSOFT (03888.HK)$ $ALI HEALTH (00241.HK)$ $HUA HONG SEMI (01347.HK)$ $TONGCHENGTRAVEL (00780.HK)$ $BYD ELECTRONIC (00285.HK)$ $ASMPT (00522.HK)$ $NIO-SW (09866.HK)$ $HORIZONROBOT-W (09660.HK)$ $TME-SW (01698.HK)$
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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