Hong Kong Tech Stocks Slide 6% in September as ETF Investors Buy Record Dip
Hong Kong's Hang Seng Tech Index fell 1.13% on September 25, extending its September losses to over 6%. Despite the decline, investors aggressively bought Hang Seng Tech ETFs, with the ChinaAMC Hang Seng Internet ETF adding 5.176 billion shares in September alone. Analysts attribute the buying to a retail "grid trading" strategy. Fund managers caution that while valuations are low (PE 23.21x), a clear reversal signal has not emerged, citing risks from US rate expectations and global AI crowding.
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Hong Kong Stocks Fall Again, ETF Shares Hit Record Highs: Who Is Buying the Dip?
Hong Kong's Hang Seng Index fell 1.01% and the Hang Seng Tech Index dropped 1.13% on September 25, extending September losses to over 6%. Despite the downturn, investors have been aggressively buying Hang Seng Tech ETFs, with the ChinaAMC Hang Seng Internet ETF adding 5.176 billion shares and the CSOP Hang Seng Tech ETF adding over 4 billion shares in September alone. Analysts cited by the article attribute this 'buy the dip' behavior to a grid-trading strategy among retail investors, who add positions at preset price drops. The article notes that the Hang Seng Internet Tech Index trades at a PE of 23.21x, lower than the ChiNext Index's 37x and the STAR 50's 133x. Fund managers quoted in the article, including those from E Fund, GF Fund, and an anonymous East China fund manager, offer a cautious outlook: they see the sector as being in a phase where the bottom is being confirmed, valuations have fallen, and AI revenue inflection points are emerging. However, they warn that a clear right-side trend signal has not yet appeared, and risks remain from global AI crowding and potential US tech stock corrections. The consensus is that while valuations are attractive, it is too early to declare a reversal.
Read sourceHong Kong Stocks Fall Again, ETF Shares Hit Record Highs: Who Is Buying the Dip?
Hong Kong's stock market continued its decline on September 25, with the Hang Seng Index falling 1.01% and the Hang Seng Tech Index dropping 1.13%, extending September losses to over 6%. Despite the downturn, investors have been aggressively buying the dip in Hang Seng Tech ETFs, with several products seeing massive share increases: China AMC Hang Seng Internet Technology ETF added 5.176 billion shares, Huatai-PineBridge Hang Seng Tech ETF added over 4 billion shares, and other ETFs saw gains exceeding 1.1 billion shares. Analysts attribute this to a 'grid trading' strategy among retail investors who buy at preset price drops. The article notes that Hong Kong internet stocks are at a stage of confirmed earnings bottom, valuation decline, and gradually verified AI revenue inflection points. However, fund managers caution against rushing in, stating that while valuations are cheap, a clear right-side trend signal has not yet emerged. Risks include potential US tech stock corrections and global AI crowding, which could affect Hong Kong tech stocks. The article cites multiple fund houses including E Fund, GF Fund, and unnamed fund managers who see medium-term upside potential driven by AI commercialization and earnings stabilization, but warn that short-term reversals are uncertain.
Hong Kong Stocks Fall, but ETF Shares Hit Record Highs as Investors Buy the Dip
Hong Kong's Hang Seng Index and Hang Seng Tech Index fell again on September 25, with the tech index down over 6% month-to-date. Despite the decline, investors have been aggressively buying Hong Kong-listed tech ETFs, with the largest ETF adding over 5 billion shares in September. Analysts cited by the article attribute this to a 'grid trading' strategy among retail investors, who add positions at preset price drops. Fund managers and analysts quoted in the article offer mixed views: some see value in the sector's low valuations (PE of 23x vs. 37x for ChiNext) and early signs of AI revenue monetization, while others warn that a clear reversal signal is absent and that global AI crowding poses a risk. The article notes that the sell-off is partly driven by rising US bond yields and a stronger dollar, but that if rate expectations stabilize, tech stocks could rebound. The overall tone is cautious, with one fund manager stating 'the left side has moved, but the right side is not yet clear.'
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Hong Kong stocks fall but ETF shares hit record highs as investors buy the dip
Hong Kong's Hang Seng Index fell 1.01% on September 25, with the Hang Seng Tech Index dropping 1.13%, extending September losses to over 6%. Despite the decline, investors have been aggressively buying Hong Kong-listed tech ETFs, with the China AMC Hang Seng Internet ETF seeing a 5.176 billion unit increase in September alone. Analysts cited by the article attribute this to a 'grid trading' strategy among retail investors who add positions at preset price drops. Fund managers from E Fund, GF Fund, and others note that while valuations are attractive—the Hang Seng Internet index PE is 23.21x versus 37x for ChiNext—they caution that a clear reversal signal is not yet visible. Some see AI commercialization as a potential catalyst, with early revenue signs emerging from internet companies' AI investments. However, a fund manager warned that global AI crowding and potential US tech corrections pose risks, advising that the market is in a 'left side has moved, right side not yet clear' phase.
Hong Kong Stocks Fall but ETF Shares Hit Records as Investors Buy the Dip
Hong Kong's Hang Seng Index fell 1.01% on September 25, with the Hang Seng Tech Index dropping 1.13%, extending September losses to over 6%. Despite the downturn, investors have been aggressively buying Hong Kong tech ETFs, with the China Asset Management Hang Seng Internet ETF seeing a 5.176 billion unit increase in September alone. Analysts cited by the Securities Times attribute this to a 'grid trading' strategy where investors add positions at preset price drops. The article notes that the Hang Seng Internet Technology Index trades at a PE of 23.21x, lower than the ChiNext Index's 37x. Fund managers express cautious optimism: one manager stated 'the left side has moved, but the right side is not yet clear,' warning that while fundamentals are improving with AI commercialization showing revenue signs, short-term reversals remain uncertain. Another analyst noted that US rate hike expectations and rising bond yields are pressuring Hong Kong tech stocks, but valuation repair potential exists if rate expectations stabilize.