The AI sector has entered a window for balanced allocation, and the two high-safety-margin sectors in the Hong Kong stock market are worth focusing on.

In the first half of the year, the global computing power AI sector experienced a sustained upward trend, with market capital highly concentrated on a single growth theme. As the semi-annual report performance verification cycle arrived, overseas capital began actively adjusting portfolio structures to reduce concentration risk in a single sector, diversifying into sub-sectors with valuation recovery potential.
Judging from cross-border capital flow behavior, institutional allocation thinking has undergone a significant shift: no longer heavily betting on a single high-growth tech sector, but adopting a "balanced growth" approach to explore Hong Kong stock sub-sectors that have undergone sufficient corrections and have clear fundamental inflection points. Current capital is mainly flowing into two major directions: Hong Kong tech and innovative drug/biotech.
Key analysis of the core logic of the innovative drug sector
Valuations at historical lows, sufficient safety margin
From Q3 2025 to H1 2026, the Hong Kong innovative drug index experienced a deep correction, with sector valuations and institutional holdings falling to near five-year lows. Stock prices of many leading companies with solid pipelines and smooth commercialization have fully digested pessimistic expectations, possessing strong contrarian allocation value.
Upgraded overseas business model, industry value reassessment
Previously, domestic pharmaceutical companies' overseas expansion relied mainly on one-time licensing deals. In 2026, the industry fully transitioned to a global co-development, profit-sharing cooperation model. Within the year, leading domestic pharma companies have reached multiple long-term strategic partnerships worth tens of billions with multinational pharmaceutical giants, covering core pipelines in oncology, metabolism, immunology, etc. The bargaining power of domestic pharma companies in the global pharmaceutical industry chain continues to improve.
Industry transaction data confirms strong momentum: In H1, the number of overseas collaboration/licensing deals by domestic pharma companies increased 34% YoY, with total deal value up 40% YoY, indicating sustained positive fundamentals.
Capital continues to deploy via ETFs
On-exchange ETFs tracking Hong Kong innovative drug stocks recently saw explosive growth in share units, with some products doubling in size in a short period. Capital continues to use index tools to position for the sector's recovery rally, with constituents primarily being overseas-focused pharma companies with global commercialization capabilities.
Supplementary allocation thinking
Short-term, a balanced allocation with Hong Kong tech can hedge against single-sector volatility. Medium to long-term, innovative drugs combine high R&D barriers with global growth attributes, belonging to the same growth category as hardcore tech, capable of absorbing capital rotation from high-flying tech stocks.
Risk Disclosure: Drug R&D carries risks of clinical progress falling short of expectations. The Hong Kong market is subject to significant volatility due to currency and overseas liquidity factors. This article only reviews publicly available market data and does not constitute any investment advice.$LUXSHARE ICT(02475.HK) $LUXSHARE-ICT(002475.SZ) $UNIS(000938.SZ) $ZTE(00763.HK) $ZTE(000063.SZ) $紫光股份有限公司(25108.HK)