Different outcomes for funds heavily invested in Hong Kong stocks - which funds jumped on the rising trend? Why did some funds heavily invested in Hong Kong stocks experience falls?

On February 13th, the Hong Kong stock market experienced a high-upswing and then a fall. The Hang Seng Technology Index surged to 4.2% at one point during the trading session, hitting a new high before falling back to a 0.87% decline. The Hang Seng Index followed a similar pattern, ending the day with a 0.2% drop. After a continuous rise in the Hong Kong stock market, the bullish sentiment has gradually cooled down from its previous hot state, and investors' cautious attitude has become more apparent. However, before and after the Spring Festival, the Hong Kong stock market witnessed a bull market. From January 14th to February 13th, the Hang Seng Index had risen by 15.58%, and the Hang Seng Technology Index rose by 24.00%. Looking at the year-to-date gains, the former rose by 8.75% and the latter rose by 17.17%. Financial journalists found that some actively managed equity funds heavily invested in Hong Kong stocks benefited from this recent uptrend. Most of the heavily invested Hong Kong stock funds have positive returns for the year Financial journalists selected 87 actively managed equity funds (including common stock, flexible allocation, equity mixed, balanced mixed) with Hong Kong stock investment market value as a percentage of fund net asset value as of the end of the fourth quarter last year as a comparison index. Among them, 17 products had Hong Kong stock investment market values accounting for over 90%. The highest net asset value increase from January 14th to February 13th was in the China Asset Management Hong Kong Internet Industry Core Assets, with a 27.89% increase. Hong Kong stocks accounted for 93.58% of the investment, and the top holdings of this product last quarter were BABA-W (09988), XIAOMI-W (01810), MEITUAN-W (03690), TENCENT, Semiconductor Manufacturing International Corporation, LI AUTO-W, BILIBILI-W, TONGCHENGTRAVEL, NETEASE MUSIC, KINGSOFT. The top holding, BABA-W, has seen its stock price rise by over 40% this year, while the second largest holding, Xiaomi Group, has risen by over 20%. Recently, due to the positive impact of DeepSeek, investments in AI technology have been hot, driving the continuous strength of related concept stocks and sectors. Many of the top holdings of these products are in the AI sector, contributing to the rise in their fund net asset value. In addition, China Asset Management Emerging Technology, Zhonghai Shanghai-Hong Kong-Deep Value Selection, Boshi Hong Kong Stock Connect Leading Trends, China Post Shanghai-Hong Kong-Deep Selected, Great Wall Hong Kong Stock Connect Value Selection Multi-Strategy, Pu Yin Ansheng Hong Kong Stock Connect Quantitative Selection, Qianhai Kaiyuan Shanghai-Hong Kong-Deep Core Drive, Huatai Bairui New Economy Shanghai-Hong Kong-Deep, and Guolian Shanghai-Hong Kong-Deep consumption, etc. The products have all seen net asset value growth rates exceeding 20%, and their top holdings are mostly in the technology sector. Looking at a longer time frame, among the funds heavily invested in Hong Kong stocks this year, China Asset Management Emerging Technology has the highest net asset value growth rate of 21.03%, followed by China Asset Management Hong Kong Internet Industry Core Assets at 20.57%, as well as Qianhai Kaiyuan Shanghai-Hong Kong-Deep Core Drive, Zhonghai Shanghai-Hong Kong-Deep Value Selection, Pu Yin Ansheng Hong Kong Stock Connect Quantitative Selection, and other 13 heavily invested Hong Kong stock funds with net asset value growth rates above 10% for the year. Overall, out of the 87 heavily invested Hong Kong stock products, 82 have seen growth in net asset value this year. Did funds that didn't rise fall behind? Overall, among the 87 funds with Hong Kong stock investment market value accounting for over 50% of fund net asset value, all products have seen an increase in net asset value from January 14th to present. However, looking at the overall performance since the beginning of the year, there are still 5 funds with negative returns. In the backdrop of a significant rise in the Hong Kong stock index, why have these funds not been able to keep up with the market pace and fell behind? Specifically, the Qianhai Kaiyuan Shanghai-Hong Kong-Deep Prosperity Industry Fund has seen a net asset value decline of 2.26% since the beginning of the year. The top ten holdings of this fund are CNOOC, TENCENT, PETROCHINA, China Shenhua Energy, CSSC SHIPPING, SANDS CHINA LTD, China Coal Energy, MGM CHINA, COSCO Shipping Holdings, and Haifeng International. The industry distribution is mainly in energy and industry. Additionally, the Bank of China Hong Kong Stock Connect Advantage Growth Fund has seen a net asset value decline of 1.79%, with top holdings in China Mobile Limited, China Shenhua Energy, China United Network Communications, Agricultural Bank Of China, ANHUIEXPRESSWAY, China Telecom Corporation, CCB, CHINACOMSERVICE, CNOOC, and SINOPEC KANTONS, focusing on the telecommunications, energy, and financial sectors. Furthermore, the Zhonghai Shanghai-Hong Kong-Deep Multi-Strategy Fund, Wing Hong Kong Stock Connect Quality of Life Select Fund, and a few others have also seen net asset value declines since the beginning of the year, with heavy holdings in the telecommunications, energy, and financial sectors. Several funds increased their Hong Kong stock positions in the fourth quarter compared to the third quarter of last year Financial journalists also found that, compared to the third quarter of last year, some funds increased their positions in Hong Kong stocks in the fourth quarter. Many products under Fortune Capital Fund significantly increased their holdings in Hong Kong stocks. For example, the Fortune Shanghai-Hong Kong-Deep Performance-Driven Fund had a Hong Kong stock investment ratio of 59.09% in the third quarter of last year, which increased to 83.12% in the fourth quarter. From January 14th to present, the fund's net asset value increased by 13.05%, with a net asset value increase of 8.20% for the year. The Fortune Shanghai-Hong Kong-Deep Value Selection fund saw its Hong Kong stock investment ratio rise from 66.23% to 81.42%, with a net value increase of 9.28% in the period, and a 3.64% increase for the year. The Fortune Shanghai-Hong Kong-Deep Industry Selection fund increased its Hong Kong stock investment ratio from 75.97% to 90.99%, with a net value increase of 11.28% in the period, and a 5.22% increase for the year. The investment in Fortune's Shanghai-Hong Kong-Deep New Economy fund saw its Hong Kong stock investment ratio increase by over 20%, with a net value increase of 20.64% in this round of Hong Kong stock upturn, and an 11.46% increase for the year. In total, 8 products had Hong Kong stock investments exceeding 10%. Even though the Hong Kong stock market presented a bullish trend on the 13thDespite the callback trend, institutional investors remain optimistic about the Hong Kong stock market. Huaxin Securities stated that they continue to strongly recommend Hong Kong stocks and are bullish on opportunities in Hong Kong's banking sector, AI-related internet platforms, data centers, hardware, software applications, and other stocks. They recommend focusing on two areas: Hong Kong tech stocks where foreign pricing power remains high, and Hong Kong state-owned enterprises, especially the performance of the four major banks in Hong Kong.CITIC SEC pointed out that in the outlook for February, the narrative of asset revaluation in China is forming, and the spring season frenzy is entering an acceleration phase, trading becomes more extreme, and the liquidity improvement potential of Hong Kong stocks is better than A shares marginally, with the focus of the market leaning more towards Hong Kong stocks. Some institutions also warn investors of risks, with BOCOM INTL stating that the recent rise in the Hang Seng Index over the past two weeks has been mainly valuation-driven, and at the current level it has recovered sufficiently from the lows of early January, with a relatively fast short-term uptrend, the Hang Seng Index has entered overbought territory. Meanwhile, from a market perspective, the rise in the Hang Seng Index is mainly centered in the information technology sector, with limited spread to other sectors, hence there may be some short-term adjustment risks, investors may consider adjusting their positions appropriately and observe the situation of profit revisions. Guoyuan International stated that due to concerns in overseas markets, and with the outbreak of the AI trend domestically, Hong Kong stocks have become one of the few safe havens for investors. In the short term, the main drivers of the current Hong Kong stock market may be more influenced by emotional factors, with the technology sector receiving strong attention and the valuations of related benefitting stocks significantly rising. Based on the assessment of market conditions, we believe that the short-term and medium-term outlook for Hong Kong stocks is cautiously optimistic. This article is sourced from "CaiLian Press", edited by Li Fo for GMTEight.