Hong Kong-themed ETF funds switch, reducing holdings in Hang Seng Technology and increasing investments in innovative drugs.

With the global surge of artificial intelligence, the previously defined as new economy Hang Seng Technology Theme Fund has recently experienced a decrease in investor holdings. Data shows that since the second quarter, several ETFs tracking the Hang Seng Technology Index have shifted from the previous trend of net capital inflow and growing scale against the trend to a noticeable decrease in shares. The fund manager of Allianz Fund believes that the Hong Kong stock market is entering a strategic opportunity period of simultaneous rise in earnings and valuation. Low valuation is just one aspect of allocating Hong Kong stocks, the core of long-term investment value comes from ROE, which is the profitability of the company. With a large number of new economy companies going public on the Hong Kong stock market, the overall market ROE has significantly increased, which is the core reason for a qualitative change in the long-term allocation value of Hong Kong stocks.