Introduction: A tech investment extravaganza is unfolding across Hong Kong and A-share markets.

In the 2025 capital market landscape, technology has emerged as the undisputed dominant trend.

On one front, Hong Kong-listed tech stocks are riding the AI wave and benefiting from low valuation premiums, attracting over HK$1.4 trillion in capital inflows. On the other, A-share hard tech sectors are breaking through with domestic substitution achievements, driving sustained gains in related indices.

Against this backdrop, the A+H dual-listing strategy has become a preferred approach for many institutional investors. The complementary nature of tech assets in Hong Kong and mainland China enables investors to mitigate single-market risks while allowing institutions to balance growth aspirations with stability requirements.

A tech investment extravaganza is unfolding across Hong Kong and A-share markets.

01 Hong Kong-listed tech stocks: A competitive arena

While investors maintain caution about macroeconomic fluctuations, Hong Kong's tech sector has emerged as the most attractive investment segment in 2025, with capital flows serving as the most direct barometer.

According to CITIC Securities, as of December 2, net southbound capital inflows for the year have surged to HK$1.38 trillion, surpassing all previous records and marking a 17.9% increase from HK$1.17 trillion at the end of Q3. This capital inflow has become a crucial pillar supporting the Hong Kong stock market.

Among these inflows, publicly offered funds have emerged as key participants. Data reveals that as of Q3 2025, publicly offered funds' holdings in Hong Kong stocks have exceeded HK$1 trillion, reaching HK$1.01 trillion and accounting for 18% of total holdings via Stock Connect.

Notably, some of these funds were launched just this year. Based on incomplete statistics, 21 publicly offered fund companies have introduced over 25 new funds in 2025, targeting popular sectors such as Hong Kong-listed tech, dividend stocks, and consumer goods.

Despite this, fund companies continue to expand their Hong Kong-focused product offerings. Some traditionally known for active equity management have also ventured into the Hong Kong index fund space. For example, the Guosheng Guozheng Hong Kong Stock Connect Technology Index Fund (Class A: 024820, Class C: 024821), launched on October 29, marks Guohai Franklin Fund's first Hong Kong index fund. Previously, the company's Hong Kong-focused products were primarily actively managed balanced funds.

The Guosheng Guozheng Hong Kong Stock Connect Technology Index Fund tracks the Guozheng Hong Kong Stock Connect Technology Index, which comprises 30 leading tech companies with high market capitalization, strong R&D investment, and robust revenue growth. The index covers sectors such as the internet, semiconductor chips, smart vehicles, and innovative pharmaceuticals, with prominent players like Alibaba, Tencent Holdings, and SMIC holding significant weights.

Xu Lirong, General Manager and Chief Investment Officer of Guohai Franklin Fund, stated in a recent media interview that the Hong Kong market offers a pool of undervalued, high-quality assets with strong earnings resilience, presenting significant medium- to long-term investment value. Based on this assessment, the company began systematically strengthening its Hong Kong investment capabilities five years ago, focusing on building and refining its research team's expertise. For actively managed products, the company extends its A-share "core holding" investment philosophy to Hong Kong, emphasizing long-term portfolio returns and a favorable risk-return ratio. To meet investor demand for "sharpness," the company has also expanded its passive index product lineup. Beyond the Guosheng Guozheng Hong Kong Stock Connect Technology Index Fund, sectors such as Hong Kong-listed dividend stocks, consumer goods, innovative pharmaceuticals, and the internet remain promising areas, with potential launches of corresponding passive products in the pipeline.

In addition to sustained capital inflows from mainland investors, foreign capital has also shifted from a wait-and-see approach to a clear rebound.

Recently, multiple foreign institutions have consistently signaled optimism toward Hong Kong stocks. UBS projects that Hong Kong will benefit from AI-driven capital inflows, while Goldman Sachs has further refined its selection to include 18 Hong Kong-listed stocks in its high-quality portfolio. According to Morgan Stanley, as of November 2025, long-term foreign capital has net purchased approximately US$10 billion worth of Chinese mainland and Hong Kong stocks through channels such as Stock Connect.

02 A-shares focus on hard tech

If Hong Kong's strength stems from tech giants like Alibaba and Tencent silently driving growth, then A-shares' rise is propelled by a wave of industrial upgrading centered on "hard tech manufacturing + domestic substitution breakthroughs," forming a complementary dynamic with Hong Kong.

Relevant data shows that multiple sub-sectors within hard tech manufacturing have delivered outstanding performance this year. As of end-November, the semiconductor sector has surged over 40%, while advanced manufacturing has climbed nearly 36%, with several sub-sector leaders soaring over 100%. Domestic substitution efforts, focusing on semiconductors, industrial mother machines, and advanced materials, have become a critical pillar of this tech bull market.

Whether it's semiconductor equipment overcoming bottlenecks, industrial mother machines achieving high-end model mass production, or advanced materials finding applications in aerospace, these tangible breakthroughs have not only boosted corporate earnings but also attracted a surge of domestic and foreign capital.

Benefiting from the strengthening of hard tech manufacturing and domestic substitution capabilities, funds investing in these sectors have become market darlings. Take the Wanjia CSI Semiconductor Materials and Equipment Theme ETF (159327) as an example: as of December 12, its year-to-date return has reached 52.27%.

A closer look reveals that the fund's success is inseparable from its strong alignment with the "hard tech" theme.

The Wanjia CSI Semiconductor Materials and Equipment Theme ETF tracks the CSI Semiconductor Materials and Equipment Theme Index, which comprises 40 listed companies involved in semiconductor materials and equipment, reflecting the overall performance of these sectors.

As is well known, semiconductor materials and equipment form the upstream core of the semiconductor supply chain. Driven by the dual forces of rising AI computing demand and accelerating domestic substitution, these sectors exhibit stronger earnings elasticity and clearer growth prospects compared to other supply chain links.

Semiconductor equipment is the foundation of chip manufacturing. The boom in AI technology has created massive demand for high-performance chips, directly driving domestic wafer foundries to expand production capacity and enabling equipment manufacturers to capture industry dividends. Meanwhile, in key equipment segments such as photolithography and etching machines, domestic market penetration remains low, creating significant urgency and market potential for domestic substitution.

Coupled with explosive growth in AI computing demand and tightening overseas technology export controls, the semiconductor materials and equipment sector—characterized by high technical barriers and profitability—has become the core battleground for China's semiconductor domestic substitution strategy.

Against this industry backdrop, the Wanjia CSI Semiconductor Materials and Equipment Theme ETF precisely targets upstream materials and equipment enterprises in the semiconductor supply chain. Through its bundled asset allocation model, it offers investors an efficient tool to share in the development dividends of "China's semiconductor industry."

03 "A+H" dual listing strategy: Mining opportunities across both markets

Clearly, whether investing in Hong Kong or A-shares this year, successfully capturing the tech trend in either market can yield substantial returns.

Against this backdrop, a growing number of institutions are actively exploring "A+H" dual listing strategies.

In fact, as early as several years ago, Broadroad Fund's Broadroad Shengyan (Class A: 012124, Class C: 012125) began implementing this approach.

A notable successful move was its proactive increase in Hong Kong stock holdings during Q1 2024. At the time, the Hong Kong market had faced three consecutive years of pressure. From an individual stock valuation and investment cost-effectiveness perspective, the fund increased its positions. By Q2 2024, Hong Kong stocks began to rebound. From April 2024 to September 30, 2025, the Hang Seng Tech Index surged 62.35%, while Broadroad Shengyan A delivered an 80.90% net value return, achieving standout performance.

Zhang Jiansheng, a TMT researcher by training, has consistently favored growth stocks and excels in individual stock selection. However, unlike most growth-oriented investors, he maintains a lower risk appetite, leading to a more contrarian, left-sided investment approach.

For instance, in his view, most A-share TMT companies consistently trade above their intrinsic value. This implies that investment in TMT inevitably places greater weight on industry momentum. Yet, Zhang avoids paying excessive valuation premiums for short-term high growth, believing it exposes the portfolio to significant volatility. He chooses to sacrifice some short-term gains for greater portfolio resilience, enabling stable excess returns during adverse market conditions.

Over the long term, this approach—characterized by downside protection and upside potential—has delivered strong rankings.

Wind data shows that as of October 31, 2025, Broadroad Shengyan A has achieved a 70.69% return over the past two years, ranking in the top 10% (360/3881) among peers. Over the past three years, its net value has cumulatively risen 87.45%, ranking in the top 3% (75/3217).

Looking ahead, the "A+H" strategy remains a direction worth watching, with more publicly offered funds launching "A+H" products. The rationale is clear:

On one hand, A-shares host a large number of high-tech companies in sectors such as hard tech manufacturing and domestic substitution. Backed by policy support and industrial upgrading, these firms offer high growth certainty. On the other hand, Hong Kong's advantages lie in its internationalized operating environment and relatively low valuations, particularly among financial, consumer, and internet tech leaders, which provide a safety net for investments.

This complementary dynamic between the two markets not only aligns with the era of "A+H" dual listings for tech companies but also precisely addresses investors' core demand for "balanced returns and risk management" after navigating market volatility.

As product offerings in this category expand, investors gain more choices.