The Hang Seng Tech Index gathers the "Seven Giants of Technology," competing with the American "Seven Sisters" of Technology!

According to Zhitong Finance APP, the Hang Seng Tech Index officially implemented its quarterly review adjustment on June 9, with BYD Company Limited (01211) successfully included in the constituent stock list. This adjustment removed China Literature Group, keeping the number of constituent stocks unchanged at 30. After this index adjustment, the Hang Seng Tech Index successfully gathered the "Magnificent Seven" tech giants.

It is reported that HTSC previously stated that the Magnificent Seven, represented by Apple, Google, Amazon, Microsoft, Meta, Tesla, and NVIDIA, have become core assets of U.S. tech stocks through stable growth performance and innovation capabilities. Since the launch of DeepSeek, funds have accelerated their inflow into the Hong Kong stock market, with the list of Chinese tech core assets comparable to the U.S. "Seven Giants" including Xiaomi, Lenovo, BYD, SMIC, Alibaba, Tencent, and Meituan, all of which have attracted investor attention.

Since the beginning of this year, the Hong Kong stock market has experienced significant fluctuations due to a series of major impacts such as DeepSeek and tariffs, showing an "N" shaped trend. CITIC Securities' latest view indicates that looking ahead, the positive signals released by the China-U.S. leaders' call and the easing of export chain pressures have raised China's growth expectations. The global capital's long-term attitude towards Chinese assets has changed significantly, and patience has increased while waiting for policies.

China's core assets are moving upstream in the value chain, and even the tech industry can provide highly competitive products, which have been validated by early 2025. As China's macro logic continues to be clarified, its independent technological capabilities are increasingly recognized and priced, and the competitiveness of manufacturing going overseas is continuously validated. The trend of foreign capital returning to Chinese assets is merely a matter of timing and rhythm. It can be said that the status of China's core tech assets is still rising, possessing significant relative profitability advantages and strong operational resilience. The core tech assets in the Hong Kong stock market are expected to become the "blue-chip engine," driving more core assets to be revalued, reshaping industrial patterns and even production relationships, while creating huge investment opportunities.

Against this backdrop, the Hong Kong stock market still offers relative returns, with consumption + technology as the main allocation line. The Hang Seng Tech Index ETF (513180) combines hard tech and new consumption attributes, demonstrating resilience amid external disturbances: (1) Hard Tech: The Hang Seng Tech Index represents China's core AI assets, with constituent stocks deeply focusing on the upstream, midstream, and downstream of the AI industry chain. Alibaba, Tencent, Xiaomi, Meituan, SMIC, Lenovo, etc., are expected to become the "Magnificent Seven" of Chinese tech stocks; (2) New Consumption: Over half of the Hang Seng Tech Index's weight is in optional consumption sectors such as e-commerce retail, automotive, home appliances, consumer electronics, and tourism, including hardware manufacturers like "Li Auto," Xiaomi, Lenovo, OTA platforms like Trip.com and Tongcheng, as well as leading home appliance brands like Haier and Midea.

The logic of benefits for the Magnificent Seven is as follows:

Xiaomi (01810): One of the main beneficiaries of edge-side AI implementation. Xiaomi is the world's leading smartphone and smart hardware manufacturer, successfully entering the smart electric vehicle industry in 2024. Focus for 2025: 1) New car launches will elevate Xiaomi's automotive business to the next level, 2) Steady improvement in smartphone business gross margin and global market share, 3) The export of major appliances will drive steady growth in smart hardware business, 4) The implementation of DeepSeek in edge AI will promote growth in new categories like AI glasses Lenovo (00992): AI investment drives recovery in PC and other business demands, as well as growth opportunities in emerging markets like the Middle East.

Lenovo is one of the world's largest manufacturers of PCs, servers, and smartphones. Focus for 2025: 1) The implementation of AI assistants/AI agents is expected to steadily increase the penetration rate of AI PCs and AI smartphones, 2) The commercialization of large AI models like DeepSeek is likely to drive enterprises to increase IT investment, leading to steady growth in shipments of Lenovo's enterprise-level products such as servers and storage. 3) The resilience of the supply chain is highlighted under tariffs, with Lenovo's unique "China + N" global manufacturing layout showing significant advantages in the current trade environment. 4) Accelerated layout in the Middle East market, Lenovo is expected to fully benefit from large-scale IT infrastructure investments and the wave of digital transformation led by the Saudi and Middle Eastern governments.

BYD (01211): Focus on the opportunities of intelligent transformation for the leading electric vehicle manufacturer. In 2024, BYD's global sales are expected to reach 4.27 million units, a year-on-year increase of 41%, making it the fifth largest in the world and the largest in China. BYD is accelerating the penetration of advanced intelligent driving features in mid-to-low-end models through intelligent transformation, aiming to challenge a sales target of 5.5 million units in 2025, while continuing to promote high-end and overseas strategies.

SMIC (00981): One of the main beneficiaries of global industrial chain restructuring. SMIC is China's largest and the world's third-largest foundry company, a major beneficiary of industrial chain restructuring. Key development drivers include: 1) Localized production demand drives mature production line utilization rates to remain high, 2) Years of R&D results are showing, with steady improvements in advanced production line yield rates.

Alibaba (BABA US/09988): Leading domestic cloud service provider, benefiting from the surge in AI demand. Alibaba is expected to benefit from the release of basic cloud service demand brought about by the development of AI applications in 2025. Looking ahead: 1) The company is expected to lead domestic cloud service providers and the revaluation of internet AI application value; 2) Strengthening application exploration in e-commerce scenarios, advancing both 2B cost reduction and efficiency improvement + 2C experience optimization, solidifying its e-commerce market share, thereby stabilizing the valuation of its main e-commerce business. Anticipating that it will broaden long-term growth space through expanded and efficient CAPEX investment.

Tencent (00700): AI empowers social advertising, promising future for mixed large models. As more AI products emerge in the future, focus on: 1) AI + Video Accounts: Advertising loading rates are at industry lows, and with AI empowerment, the industry is expected to achieve simultaneous price increases and cost reduction and efficiency improvement in the medium term; 2) AI + Games: The mixed open-source 3D large model helps game developers accelerate R&D progress; 3) AI + Cloud: Tencent Cloud leverages large models to enrich its existing product matrix, accelerating the commercialization of AI in the B2B sector.

Meituan (03690): Leading local lifestyle consumption, focus on: 1) The takeout market still has growth potential, with user engagement in the climbing phase, and significant profit release under the current trillion GTV scale; 2) Competition in the in-store business has passed the inflection point, with profits beginning to recover; 3) Flash purchase and overseas businesses are taking shape, with the "retail" + "technology" strategy bringing long-term growth options to the company