U.S. stocks are recovering, Hong Kong stocks are looking for opportunities: How to allocate among semiconductors, biopharmaceuticals, gold, and high-dividend ETFs?

US Stocks Recover, Hong Kong Stocks Seek Opportunities: Allocation Ideas for Semiconductor, Biopharma, Gold, and High-Dividend ETFs
The recent market theme is clear: US stocks rely on earnings and AI to sustain momentum, while the key question for Hong Kong stocks is whether they can follow the rally, and if so, which sectors to consider. Quan Xiaolei, Business Manager of the Channel Business Department at E Fund Asset Management (Hong Kong), and Wen Gangcheng, Vice President of iFast Global Markets, discussed the ETF allocation logic suitable for ordinary investors around four major directions: semiconductors, biopharma, gold mining, and Asia-Pacific high-dividend stocks in the "Talk Finance" program.

Different Rhythms of US and Hong Kong Stocks
US corporate earnings have generally been not bad recently, especially as some large-cap tech stocks have already fallen and rebounded before earnings announcements, making it easier for the market to see a "post-earnings rise" trend. He also mentioned that if Tesla's earnings align with market anticipation of a SpaceX IPO, it could provide an additional boost to sentiment. Hong Kong and US stocks are affected differently by macro factors, so allocating to both markets helps diversify risk.

Semiconductors: The Core Logic of 3486
The semiconductor-themed ETF 3486 is the E Fund Asia Semiconductor ETF. Quan Xiaolei explained that the key design focus of this ETF is to concentrate on leading Asian semiconductor companies, using a basket approach to reduce single-stock volatility risk. Its top five holdings include SK Hynix (000660.KS), Hua Hong Semiconductor ($HUA HONG SEMI(1347.HK)), TSMC (2330.TW), SMIC ($SMIC(981.HK)), and ASMPT ($ASMPT(522.HK)). The most attractive aspect of this theme is that it consolidates "key positions in the Asian semiconductor supply chain" into a single tool. Wen Gangcheng believes that the roles of South Korea, Taiwan, and Japan in chips, materials, equipment, and memory are all crucial. Therefore, using an ETF instead of betting on a single stock is more practical for most investors. Quan Xiaolei also reminded that semiconductors are highly volatile, so attention to allocation proportions is needed, which is where the advantage of ETFs lies.

Biopharma: The Cross-Market Layout of 3186
Another focus is the biopharma ETF 3186, the E Fund Global Pharma & Biotech ETF. This ETF simultaneously covers mainland pharmaceutical companies listed in Hong Kong, US-listed pharma companies, and some European pharma companies, representing a rare cross-market allocation. Quan Xiaolei stated that this design allows investors to access global biopharma leaders and small-to-medium biotech companies at once, and through an equal-weight approach, enhances the flexibility of small-to-mid-cap companies during new drug breakthroughs. Wen Gangcheng also mentioned in the program that the investment logic for biopharma comes from several directions: an aging population, rigid healthcare demand, AI improving clinical and R&D efficiency, and capital chasing companies with clinical data. This makes 3186 not just a "big pharma wrap," but more like consolidating the global innovative drug trend into a single framework.

Gold Mining: The Leverage Idea Behind 2824
The gold market has retreated from its highs. Is it still worth including in a portfolio? The product mentioned here is the gold mining ETF 2824, the E Fund Gold Mining ETF. Wen Gangcheng pointed out that gold mining ETFs differ from spot gold because mining companies have relatively fixed costs. When gold prices rise, their profits often amplify, making their performance a higher-beta gold tool. Quan Xiaolei also mentioned that this ETF focuses on global gold mining leaders and includes mainland gold mining stocks listed in Hong Kong, making it more aligned with the habits of Asian investors than traditional global gold mining indices. He believes that if one believes in long-term de-dollarization, continued central bank gold purchases, and geopolitical uncertainty, gold remains a worthwhile asset to hold.

Asia-Pacific High-Dividend: The Cash Flow Appeal of 3483
The high-dividend portion discusses 3483, the E Fund Asia-Pacific High Dividend ETF. This ETF combines high-dividend stocks from Hong Kong, Japan, and Australia, using geographical and sector diversification to reduce single-market volatility. Quan Xiaolei pointed out that the advantage of such products is that they can provide a relatively stable dividend payout rhythm, which is especially attractive for investors looking to build cash flow or prefer annuity-like income. Wen Gangcheng added that many high-dividend stocks in Hong Kong already have quite attractive dividend yields, but buying individual stocks is easily affected by share price volatility. The benefit of a high-dividend ETF is that it combines dividend payouts with risk diversification. In his view, for those who don't want to spend too much effort watching the market, buying a high-dividend ETF is a more hassle-free approach.

Investment Insights from This Dialogue
The core message of this dialogue is not "which one will definitely rise," but how to use ETFs to transform industry trends that are difficult to bet on individually into actionable investment tools. Semiconductors are suitable for capturing growth elasticity, biopharma for positioning for innovation and R&D breakthroughs, gold mining for hedging geopolitical and inflation risks, and high-dividend stocks for pursuing stable cash flow. For most investors busy with work and unable to watch the market for long periods, the value of ETFs lies in minimizing the difficulty of research and stock selection.

Some tickers mentioned in the article

E Fund Asia Semiconductor ETF: 3486.$EFUND A SEMICON ETF(03486.HK)

E Fund Global Pharma & Biotech ETF: 3186.$EFUND BIOPHAR ETF(03186.HK)

E Fund Gold Mining ETF: 2824.$EFUND GOLD MI ETF(02824.HK)

E Fund Asia-Pacific High Dividend ETF: 3483.$EFUND APAC HD(03483.HK)

SK Hynix: 000660.KS.

Hua Hong Semiconductor: $HUA HONG SEMI(1347.HK).$HUA HONG SEMI(01347.HK)

TSMC: 2330.TW.$Taiwan Semiconductor(TSM.US)

SMIC: $SMIC(981.HK).$SMIC(00981.HK)

ASMPT: $ASMPT(522.HK).$ASMPT(00522.HK)