highestpayingcryptogamesandroid| Is the rebound in Hong Kong stocks 'technology just a flash in the pan? The share of related ETFs has dropped by more than 9 billion yuan in the past month

Financial Associated Press, May 24 (editor Hu Jiarong) recently, there has been a lot of Hong Kong stocks.HighestpayingcryptogamesandroidWhile the share of ETF related to the technology index declined after the end of April, such as Hang Seng Internet ETF (513330)HighestpayingcryptogamesandroidSH), Hang Seng Technology Index ETF (513180.SH), China Internet ETF (513050.HK).

Take Hang Seng Internet ETF (513330.SH) as an example. According to choice, the index fell from 86.433 billion on April 25 to 77.193 billion on May 23, a total drop of 9.24 billion during that period.

Note: performance of Hang Seng Internet ETF since April 1st

The Hang Seng Technology Index ETF, for example, fell from 46.263 billion on April 26 to 43.09 billion on May 23, a total drop of 3.173 billion during the period.

Note: the performance of the Hang Seng Technology Index ETF since April 26

Take China Internet ETF as an example, the index fund fell from 36.762 billion on May 6 to 35.313 billion on May 23, a total drop of 1.449 billion during the period.

Note: the performance of Internet ETF since May 6

It is worth noting that the rebound in the Hang Seng Technology Index started on April 19, with a low of 3233.76 on that day. The index then fell after hitting a short-term high of 4155.87 on May 17. As of yesterday's close, the index was still up 16.07 per cent from its current low.

Note: hang Seng Technology Index Note: performance of the Hang Seng Technology Index since 18 April

Who is the driving force behind this rebound in the technology index?

A report released today by Sino-Thai International analyzes the upward trend in Hong Kong stocks since late April, arguing that this is mainly driven by valuation repair and improved risk appetite. The report points out that transactional funds, short position cover and the return of some foreign capital provide support for the market. However, although the decline in earnings forecasts for Hong Kong stocks has slowed, the overall downward trend has not yet been fully reversed.

China International Capital Corporation expressed a similar view in his latest report, arguing that the rise in the Hong Kong stock market was mainly due to inflows of transactional and regional allocation funds. These include fast-moving hedge funds, trading funds that cover short positions, and local and regional funds that reallocate money back to the Chinese market after fluctuations in external markets such as Japan.

China International Capital Corporation further stressed that the reallocation of medium-and long-term funds requires a significant improvement in fundamentals, which involves the positive impact of fiscal policy to deal with the current decline in inflation and credit crunch. Recently, a series of policy measures, including support for the real estate market and the issuance of ultra-long-term government bonds, have raised market expectations in a short period of time. However, the effectiveness of the policy, especially its long-term impact on fundamentals, will depend on the strength and speed of implementation of the policy, which is more important than short-term goals.

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