Which is stronger for regular investment in Hong Kong tech stocks? Say goodbye to single-track bets, Hong Kong tech ETF Invesco (513980) "software + hardware" allocation captures Hong Kong tech full-chain benefits

From the perspective of the underlying logic of asset allocation, the Hong Kong stock market naturally exhibits the three characteristics of “high volatility, deep discounts, and strong cycles,” which align well with the core advantages of dollar-cost averaging strategies, such as discipline, long-term focus, and smoothing costs.

Compared to lump-sum timing investments, dollar-cost averaging in Hong Kong stocks can more effectively respond to its market features and enhance long-term returns. The CSI Hong Kong Stock Connect Technology Index (931573), with its unique advantages, is also expected to become a high-quality target for Hong Kong stock dollar-cost averaging.

Dual Focus on Technology Leaders’ Purity and Growth Potential

The Hong Kong stock market operates with T+0 trading and no daily price limits. Coupled with frequent international capital flows and high geopolitical sensitivity, its volatility is significantly higher than that of the A-share main board.

The CSI Hong Kong Stock Connect Technology Index selects large-cap, high R&D investment technology companies within the Hong Kong Stock Connect universe. Its constituents cover cutting-edge fields such as internet technology, biomedicine, new energy vehicles, and high-end manufacturing.

Compared to the Hang Seng Tech Index, its industry distribution is more balanced: it includes not only internet platform giants but also innovative drug R&D, medical devices, new energy industry chains, and other hard-tech companies, forming a “soft tech + hard tech” three-dimensional layout.

Most constituents are Chinese tech leaders with strong global competitiveness, deep business foundations, and R&D intensity significantly above market average. They have clear performance realization capabilities in AI application commercialization, innovative drug exports, and smart manufacturing upgrades. The diversified layout also effectively smooths potential risks from single-industry concentration, making it more suitable for long-term dollar-cost averaging.

Figure: Broader Industry Coverage of the CSI Hong Kong Stock Connect Technology Index

Data Source: Wind As of: 2026.03.10

Balancing Economic Certainty and Thematic Explosiveness

The index’s industry weights show a “dumbbell” configuration: one end features internet giants with stable cash flow and strong dividend capacity, providing performance support; the other end includes high R&D investment targets like innovative drugs, new energy vehicles, and AI industry chains, carrying valuation elasticity driven by technological breakthroughs.

This structure captures the dual benefits of the tech sector’s “short-term performance support + long-term thematic explosion” while avoiding risks associated with over-concentration in a single track. Compared to purely internet indices, this index more comprehensively reflects China’s tech industry’s diversified development at the critical juncture when AI is transitioning from “technological reserve” to “value realization.”

Under this layout, when the internet sector faces anti-monopoly or advertising revenue declines, the innovative drug sector may rise against the trend due to active BD transactions; when the new energy vehicle industry chain adjusts, AI computing infrastructure could gain funding from technological breakthroughs. Sector rotation effectively smooths net asset value fluctuations.

Data shows that over the past year, the Hong Kong tech sector experienced volatile fluctuations and multiple market corrections, with most tech indices underperforming. In this environment, the CSI Hong Kong Stock Connect Technology Index’s decline was only 6.15%, far better than similar Hong Kong tech indices, making it relatively friendly for investors seeking long-term compound growth but unable to tolerate sharp volatility.

Figure: Lower Drawdown of the CSI Hong Kong Stock Connect Technology Index

Data Source: Wind As of: 2026.03.10

In terms of returns, as of January 31, 2026, among the Hong Kong tech-related indices since 2025, the CSI Hong Kong Stock Connect Technology Index had the highest increase at 41.03%; the Hang Seng Tech Index increased by 36.34%, exceeding it by 4.69%.

Valuation-wise, the PE (TTM) of the CSI Hong Kong Stock Connect Technology Index is 25.5x, at the 30th percentile over the past five years; its Price-to-Book ratio is 3.59, at the 68th percentile over the same period. Current valuations remain attractive.

Figure: Risk-Return Comparison of Indices Since 2025

Data Source: Wind As of: 2026.01.31

Which Hong Kong Stock Connect Technology ETF is the best?

Invesco Hong Kong Tech ETF (513980), as one of the first on-market trading instruments closely tracking the CSI Hong Kong Stock Connect Technology Index, has established a significant competitive edge within the Hong Kong tech ETF landscape through precise positioning and efficient operation.

Thanks to Invesco Great Wall’s market maker network in the ETF sector, Invesco Hong Kong Tech ETF (513980) enjoys ample liquidity in the secondary market, with the current size surpassing 20 billion yuan, accounting for over 70% of all ETFs tracking this index. Its average daily trading volume remains above 100 million yuan, highlighting liquidity advantages among similar products.

Additionally, the fund is equipped with comprehensive off-market connection funds (Class A 016495, Class C 016496) to meet diversified needs such as dollar-cost averaging and conversions, enabling it to serve both retail investors’ convenient allocation and institutional strategies.

Risk Reminder: The market has risks; investment should be cautious!