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One-click investment in China's hard tech: the first Hong Kong Exchange index ETF—E Fund Hong Kong Exchange Tech 100 ETF (3456.HK)—officially opens for subscription on June 18

In 2025, DeepSeek’s emergence ignited a new wave in China’s technology sector. This is not an isolated event but rather emblematic of China’s tech industry shifting from 'single-point breakthroughs' to 'multi-sector synergy'—with six core sectors—artificial intelligence, biotechnology, autonomous driving, robotics, internet, and information technology—all simultaneously entering an accelerated phase of industrialization.

On the capital markets front, the Hong Kong Exchange has amassed a high concentration of Chinese tech listings, thanks to institutional innovation and two-way global capital flows: it ranked first globally in IPO fundraising in 2025 with USD 36.78 billion; as of early April 2026, 86% of companies submitting listing applications were tech firms; sector leaders such as Alibaba, Tencent, SMIC, BeiGene, and Horizonrobot are already listed here, and ETFs on the exchange boast an average daily turnover rate of 8.6%, the highest among global exchanges.

Amid this historic opportunity, the Hong Kong Exchange has developed and launched its flagship tech index—the Hong Kong Exchange Tech 100 Index. Based on this index, E Fund Asset Management (Hong Kong) has introduced $E Fund HKEX Tech 100 ETF (03456.HK)$ an efficient tool for investors to gain one-stop exposure to China’s six core technology sectors, making the era’s opportunities in Hong Kong-listed tech stocks readily accessible.

*Note: The full product name of E Fund HKEX Tech 100 ETF is E Fund (Hong Kong) HKEX Technology 100 Index ETF.。

I. Product Overview

II. Key Investment Highlights

2.1 Index Scarcity: The World’s First ETF Tracking HKEX’s Flagship Technology Index

The HKEX Technology 100 Index, independently compiled and launched by the Hong Kong Exchange, serves as its flagship benchmark for Chinese tech assets. It mirrors the Nasdaq 100—which is similarly exchange-compiled, comprises 100 stocks, spans sectors including information technology, consumer goods, and healthcare, and over the past 40 years has evolved through multiple cycles to become a quintessential barometer of global industrial transformation.

Following the same philosophy, the HKEX Technology 100 Index includes 100 representative technology stocks across six key segments—AI, innovative pharmaceuticals, intelligent driving, humanoid robotics, semiconductors, and internet—balancing the stability of industry leaders with the growth potential of emerging innovators. As the world’s first ETF tracking this index, E Fund HKEX Tech 100 ETF enjoys a significant first-mover scarcity advantage.

2.2 High Growth Elasticity: Capturing Tech Rebound Momentum

The index has demonstrated strong offensive characteristics during rallies in Hong Kong tech stocks, delivering an average gain of 28% over three months. It recorded annual returns of 20.5% in 2024 and 34.9% in 2025, fully validating its growth elasticity during upward market cycles.

2.3 Valuation Opportunity: An Ideal Time to Invest in Hong Kong Tech

China’s technology sector is flourishing broadly, with AI driving intelligent transformation across industries and commercialization accelerating rapidly. The Hong Kong tech segment currently offers compelling valuation appeal—the index’s price-to-earnings ratio sits at just the 12th percentile of its five-year range, presenting a timely opportunity for strategic positioning with strong growth potential ahead.

3. Investment Value Analysis

3.1 Industry Front: China's Technology Sector Enters a Phase of Comprehensive Breakthrough

2025 marks a pivotal year for Chinese technology. The 'AI democratization' effect triggered by DeepSeek has solidified a G2 dynamic between the U.S. and China in the AI arena. More importantly, six key sectors are simultaneously accelerating into industrial-scale commercialization:

– Artificial Intelligence: 2026 will be the inaugural year for AI Agent commercialization, with China’s AI model API usage already surpassing that of the U.S., signaling a shift from technological catch-up to application-led export.

– Robotics: 2025 marks the first year of mass production, with companies like Unitree and Agibot already shipping thousands of units. China holds a global edge in cost control and supply chain integration.

– Biotechnology: In the first five months of 2026, business development (BD) deals exceeded USD 80 billion. Nearly one-third of the world’s fastest-advancing drugs targeting the same mechanisms originate from China, reflecting a strategic shift from 'fast-follow' to 'first-in-class.'

– Intelligent Driving: L2+ adoption continues to rise, with BYD, XPeng, and others leveraging large-scale data and end-to-end algorithmic iterations to achieve global competitiveness.

– Semiconductors: Domestically produced AI chips are projected to account for 70% of supply by 2026, and mainland China’s wafer fabrication capacity is expected to become the world’s largest by 2030.

– Internet: Major tech firms are seeing broad-based success in AI applications, with cloud revenue growth accelerating noticeably, and a second growth curve—shifting from traffic-driven to technology-driven—is becoming increasingly clear.

Six key sectors are now reinforcing each other, making investment in Chinese technology no longer a single bet on one technological path, but participation in a systemic industrial upgrade powered by multiple engines.

3.2 Market Perspective: Hong Kong Exchange – The New Global Hub for Technology Asset Allocation

– Global Leader in Fundraising: In 2025, IPO fundraising reached USD 36.78 billion, ranking first globally; over 270 international institutions participated as cornerstone investors.

– High Concentration of Tech Companies: As of April 8, 2026, 86% of companies submitting listing applications were technology firms, including leaders across AI, semiconductors, biotechnology, robotics, and other key sectors.

– Strong Liquidity: The Hong Kong Exchange’s ETFs recorded an average daily turnover rate of 8.6%, topping global exchanges.

– Continual Institutional Innovation: Chapter 18A, Chapter 18C, and the 'Tech Enterprise Fast Lane' continue to lower listing thresholds for technology companies, providing institutional support for the index's long-term growth potential.

This virtuous cycle is already taking shape: high-quality tech companies keep listing in Hong Kong, attracting global capital allocation, which enhances liquidity and, in turn, draws even more companies to choose Hong Kong as their listing venue.

3.3 Index Perspective: HKEX Tech 100 Offers a Differentiated Positioning

The HKEX Tech 100 is clearly distinguished from the Hang Seng Tech Index in its methodology:

– Coverage: The Hang Seng Tech Index selects 30 large-cap tech leaders, resulting in high concentration; the HKEX Tech 100 includes 100 constituents, retaining leading firms while also incorporating numerous small- and mid-cap emerging tech companies.

– Sector Composition: Internet platforms account for 31.7% of the Hang Seng Tech Index, making its performance highly correlated with the platform economy; in contrast, the HKEX Tech 100 reduces internet exposure to 15.2%, while increasing biotech and pharmaceuticals to 20.7% and artificial intelligence to 42.4%.

– Investment Access: All constituents of the HKEX Tech 100 are eligible for inclusion in Stock Connect, enabling mainland China-based funds to invest directly via the Stock Connect mechanism without being constrained by QDII quotas.

Based on backtested performance, the Hang Seng Exchange Tech 100 has delivered better annualized returns and lower volatility than the Hang Seng Tech Index over the past five years. During historical periods when Hong Kong tech stocks outperformed—such as in 2024 and 2025—it exhibited higher elasticity.

3.4 Valuation: One of the few globally available tech assets still offering a margin of safety

Horizontally, Hong Kong tech is among the few global tech assets trading below the 30th percentile of its valuation range over the past five years, making it notably more attractive compared to mainstream tech indices like the Nasdaq 100. Vertically, its current PE-TTM is approaching the minus-one-standard-deviation level of the past five years; historically, whenever valuations have fallen into this range, downside potential has been extremely limited.

3.5 Capital Flows: Dual drivers from southbound and foreign capital

– Southbound funds: Mainland investors’ share of trading volume in Hong Kong-listed ETFs via Stock Connect has risen above 25%. Since the beginning of 2026, net inflows into the information technology and healthcare sectors over the past 20 trading days have totaled approximately HK$15.1 billion.

– Foreign capital returning: EPFR data shows that active foreign funds have turned net buyers on a phased basis since the start of the year. Hong Kong equities remain underweighted in global portfolios relative to historical levels, leaving room for further allocation increases.

IV. Participation Methods

– Product Name: E Fund Hang Seng Exchange Tech 100 ETF (3456.HK)

– Subscription Period: 10:00 a.m., June 18, 2026 – 9:00 a.m., June 24, 2026

– Listing Date: June 26, 2026

– Minimum Subscription Amount: HKD 780

5. Risk Warnings

Index Provider Disclaimer

Hong Kong Exchange Index Company Limited and its affiliates, information providers, and any other third parties involved in or associated with the calculation, compilation, publication, dissemination, or provision of the Hong Kong Exchange Technology 100 Index (collectively, the “HKEX Index Parties”) do not sponsor, endorse, sell, or promote the iShares (Hong Kong) Hong Kong Exchange Technology 100 Index ETF and/or the iShares (Hong Kong) Hong Kong Exchange Technology 100 Index Fund (collectively or individually, the “Products”), nor do they make any express or implied representations or warranties regarding the Products. The HKEX Index Parties disclaim all liability to any person (including owners of the Products or any members of the public) concerning the legality, suitability, or desirability of investing in the underlying assets or financial instruments (whether as a general investment or specifically in the Products).

The sole relationship between Hong Kong Exchange Index Company Limited and iShares Asset Management (Hong Kong) Limited is that Hong Kong Exchange Index Company Limited has licensed iShares Asset Management (Hong Kong) Limited to use the Hong Kong Exchange Technology 100 Index and the relevant trademarks, service marks, and/or trade names of Hong Kong Exchange Index Company Limited or its affiliates. The Hong Kong Exchange Technology 100 Index, such marks, and trade names are the exclusive property of Hong Kong Exchange Index Company Limited and its affiliates. The Hong Kong Exchange Technology 100 Index is determined, composed, and calculated by the HKEX Index Parties without regard to the Products or their performance. The HKEX Index Parties may at any time cease calculating, compiling, or publishing the Hong Kong Exchange Technology 100 Index and may from time to time modify its methodology without assuming any liability to any person in connection therewith. In determining, composing, or calculating the Hong Kong Exchange Technology 100 Index, the HKEX Index Parties have no obligation to consider the needs of iShares Asset Management (Hong Kong) Limited or investors in the Products.

The HKEX Index Parties make no representations or warranties whatsoever regarding the accuracy, timeliness, and/or completeness of the Hong Kong Exchange Technology 100 Index or any data contained therein, and shall not be liable for any errors, omissions, or interruptions therein.

The HKEX Index Parties disclaim all express or implied warranties and, to the fullest extent permitted by applicable law, assume no liability of any kind to any person in connection with the Hong Kong Exchange Technology 100 Index or any data contained therein, including but not limited to the following: (I) results obtained by iShares Asset Management (Hong Kong) Limited, investors in the Products, or any other person or entity from the use of the Hong Kong Exchange Technology 100 Index or any data contained therein; (II) the merchantability, fitness for a particular purpose or use, or utility of the Hong Kong Exchange Technology 100 Index or any data contained therein; and (III) whether the Hong Kong Exchange Technology 100 Index reflects overall market performance or the overall performance, prices, or other aspects of any underlying assets.

By subscribing for or purchasing the Products, investors are deemed to have acknowledged, understood, and accepted the above disclaimer.

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