The Hang Seng Tech ETF (526000:CH) and Hang Seng Internet ETF (520910:CH) from China AMC rose by 2.92% and 1.91% respectively during Monday's trading session, reflecting a marginal improvement in market expectations for capital spending in the artificial intelligence industry chain. Key catalysts include DeepSeek launching its first round of external equity financing with a target valuation of no less than $10 billion and TSMC (2330:TW) reporting better-than-expected first quarter results, signaling a recovery in the semiconductor cycle. Brokers like CITIC Securities indicate that the Hong Kong stock market is entering an earnings verification period in April. If the financial guidance of internet platforms and computing hardware companies meets expectations, the sector's valuation center might face structural reevaluation.
Resonance Between Computing Power Demand and Hardware Cycles
Amid the macro backdrop of continued global capital expansion in artificial intelligence, the underlying logic of the Hong Kong technology sector is undergoing substantive changes. From Monday's market performance, funds are systematically concentrating on entities with core computing infrastructure and end-side hardware delivery capabilities. TSMC's (2330:TW) better-than-expected first quarter performance has essentially set a baseline for the recovery of the global semiconductor industry. The positive signals released by the increased utilization of upstream wafer foundry capacity have quickly transmitted to relevant Hong Kong stocks. The continuous rise in dynamic random access memory (DRAM) prices further confirms the rebound in the hardware cycle, providing support for the improved asset returns of wafer manufacturers like SMIC (0981:HK) and Hua Hong Semiconductor (1347:HK).
Anchor in Primary Market Financing and Valuation Recovery in Secondary Market
High-level financing events in the primary market are providing clear valuation anchors for relevant assets in the secondary market. According to foreign media reports, the AI large model company DeepSeek is launching its first external equity financing since its inception, with a target valuation set at no less than $10 billion. This event directly boosts the capital market's risk appetite for pure AI applications and underlying algorithm entities. In the Hong Kong stock market, this sentiment premium has quickly transformed into a liquidity premium, with Quark Technology surging more than 50% on its second trading day and Zhupu-related concept entities appreciating over 15%. If these large model companies can consistently demonstrate the ability to commercialize their applications, the valuation system of the overall software services and content ecosystem sector in Hong Kong may face recalibration.
Passive Capital Flows and Underlying Asset Structure Differences
Institutional funds have expressed their refined allocation demands within different tracks of the technology sector through exchange-traded funds (ETFs). The Information Technology ETF from China AMC (526000:CH) recorded a gain of nearly 3%, entirely focused on the China Connect Information Technology Composite Index, covering semiconductors, software services, and ICT equipment. Major holdings like Xiaomi Group (1810:HK) and Lenovo Group (0992:HK) directly benefit from the AI terminal equipment replacement cycle. In contrast, the Internet ETF from China AMC (520910:CH), which rose by nearly 2%, focuses on tracking the upgrade path of internet business models driven by AI, with holdings highly concentrated in content and e-commerce platforms like Tencent Holdings (0700:HK) and Alibaba (9988:HK), which have large user bases and data barriers.
Earnings Verification Period and Institutional Forethought Allocation Logic
CITIC Securities' macro strategy model suggests that the current Hong Kong stock market is at a crucial juncture transitioning from sentiment repair to fundamental verification. During the intense earnings disclosure period in April, enterprises' actual profitability and the market's high expectations will face direct confrontation. Both of the aforementioned ETFs support a T+0 trading mechanism, providing flexible liquidity management tools for high-frequency trading funds and macro hedge funds. In subsequent trading cycles, if core internet platforms can demonstrate that AI technology has a substantial boosting effect on their ad loading rates or cloud computing business profit margins, the strategic exposure of foreign funds to the region's technology assets might further increase.
