Focusing on the entire AI industry chain, Huatai-Hengsheng Hong Kong Stock Connect China Technology ETF Link C(025167) Pure Technology Index Allocation Analysis

As the global technology industry accelerates its deep dive into artificial intelligence, the “purity” of investment tools is becoming a key factor in distinguishing the value of different sectors. The Huaxinfu Hang Seng Hong Kong Stock Connect China Technology ETF Link C (025167), which tracks the Hang Seng Hong Kong Stock Connect China Technology Index, is gradually becoming a “sharp tool” for investors to position in core AI assets, thanks to its clear construction logic and industry chain coverage. This article will analyze its unique value as a pure technology index allocation from three perspectives: index structure, industry mapping, and tool positioning.

1. Three Core Labels, Focusing on the Tech Essence

Among Hong Kong stock technology indices, the Hang Seng Hong Kong Stock Connect China Technology Index has distinctive construction rules. Its core can be summarized into three labels:

First, excluding healthcare and automotive sectors for higher purity. Compared to some broad technology indices that include biomedicine, new energy vehicles, and other industries, this index explicitly focuses on traditional “pure tech” fields such as information technology, internet platforms, and hardware manufacturing. In the current environment where AI investment logic is becoming clearer, this setup offers higher recognition and allocation efficiency.

Second, highly focused on core IT and internet assets. The index components mainly include computers, electronics, semiconductors, communications, and internet platforms, covering key segments from underlying computing power to upper-layer applications, forming a systematic layout of the tech industry chain.

Third, covering “Hong Kong M7” core assets. According to institutional estimates, the index’s combined weight of seven representative Hong Kong tech companies—Tencent Holdings, Alibaba-W, SMIC, Lenovo Group, Xiaomi Group-W, BYD Electronics, Meituan-W—is close to 60%. These companies are not only major capital expenditure players but also critical nodes in the AI industry chain, forming the stable core holdings of the index.

These three labels together build the index’s “purity moat,” giving it a differentiated position among Hong Kong tech investment tools.

2. Full Industry Chain Mapping of AI: An Integrated Layout from Computing Power to Applications

By 2026, global tech giants’ capital expenditure continues to rise, and the AI industry is moving from “proof of concept” to “large-scale infrastructure development.” Against this backdrop, the component structure of the Hang Seng Hong Kong Stock Connect China Technology Index precisely reflects the transmission path of the AI industry chain.

Upstream hardware: SMIC, as a leading domestic wafer foundry, continues to improve capacity utilization, with market attention on its role in the localization of AI chips; Lenovo Group has deep layouts in AI servers and AI PCs, becoming a key carrier for shifting computing power from the cloud to the edge; BYD Electronics and Xiaomi Group-W have capabilities in smart hardware and precision manufacturing to meet AI terminal demands.

Midstream platform: Tencent Holdings and Alibaba-W, as internet platform giants, are building AI cloud infrastructure and model capabilities through massive capital expenditure. Goldman Sachs estimates that Alibaba’s AI cloud infrastructure investment will account for 60% of its capital expenditure over the next three years, while Tencent will allocate 45% to AI models and computing power. These investments not only create competitive barriers but also provide foundational support for downstream application ecosystems.

Downstream applications: Meituan-W, Kuaishou-W, and other platform companies are actively exploring AI deployment in local services, content recommendation, and intelligent customer service, becoming potential beneficiaries of AI technology value realization.

From hardware to platform to application, the index constructs a complete AI industry chain mapping path, offering investors a one-stop tool for core AI sector deployment.

3. Sharp Tool Positioning, Preferred by High-Purity Tech Sector Allocators

In the current environment where tech investment logic is increasingly differentiated and market focus on capital efficiency rises, the “purity” and “penetration” of investment tools are becoming more important. The Huaxinfu Hang Seng Hong Kong Stock Connect China Technology ETF Link C (025167), with its clear industry chain structure and concentrated core asset layout, is a tool worth attention for investors favoring tech sectors and seeking high-purity allocations.

For investors aiming to simplify their tech exposure and enhance their AI sector positioning, it is also a “sharp choice” worth monitoring. As AI evolves from expanding computing power to practical applications, this index benefits from hardware performance support and platform valuation elasticity, offering cyclical resilience and allocation value.

Huaxinfu Hong Kong Stock Tech Allocation Observation Toolkit:

【Hong Kong Tech Broad Market — Classic Vehicle】Huaxinfu Hang Seng Technology ETF Link (QDII) C (013128): A flagship broad-based ETF for internet platform leaders, highly representative of the sector. Aims to balance core Hong Kong tech assets and capture long-term growth momentum of China’s new economy.

【Full Industry Chain of AI — High Purity】Huaxinfu Hang Seng Hong Kong Stock Connect China Technology ETF Link C (025167): Focuses on “Hong Kong M7” core assets, deeply covering the entire AI computing, terminal, and application industry chain. Pure style, excluding healthcare, automotive, and other non-tech sectors, making it a precise tool for capturing AI core value.

【Selected Core Assets — Active Strategy】Huaxinfu Hong Kong Stock Connect Technology Select Hybrid Fund (025545): Uses active management within the Hong Kong Stock Connect scope to dynamically select targets with strong competitive barriers and core advantages. Combining industry trend analysis, aims to discover high-potential assets and generate excess returns beyond the index.