Hong Kong stock funds face a difficult struggle to break through

In 2025, innovative drugs, artificial intelligence, dividends, and sectors such as pharmaceuticals and mining are dancing successively. Among them, innovative drugs, especially the Hong Kong stock innovative drug sector and the "wind" of artificial intelligence, continued until the end of the third quarter. At that time, there were a total of 49 "doubling bases," with Hong Kong stock pharmaceutical theme funds occupying a significant proportion. However, by the end of last year, with the retreat of the Hang Seng Innovation Drug Index, the performance rankings of relevant thematic products were rarely seen. In the midst of a crowd of A-share technology thematic doubling bases, only one product, the Hang Seng Hong Kong Advantage Selection Fund, rose more than 112%. This is also a microcosm of the poor performance of the Hong Kong stock market as a whole compared to A-shares in the slow bull market of 2025. In the fourth quarter of last year, apart from the innovative drug sector, the Hang Seng Technology Index also retreated to a high level, falling by about 15% in a single quarter, resulting in only about a 20% increase for the whole year, with related funds also performing poorly. Analysis by a certain public fund in East China pointed out that the weakness of Hong Kong stocks is mainly affected by multiple factors, including the incremental impact of southbound funds returning to A-shares in the context of new regulations on public fund benchmarks, the crowding effect of trading in certain sectors, and concerns about the accelerated pace of IPO financing and the peak of restricted stock unlocking. At the same time, downward revisions of corporate profit expectations and overseas liquidity disturbances also exert a certain pressure on the Hong Kong stock market.