The first batch of Hang Seng Technology ETF Dacheng Hang Seng Technology ETF (code:159740; Ran, manager of Hang Seng Science and Technology Fund, said: Hang Seng Science and Technology Index is playing an increasingly important role in the Hong Kong stock market and has become another flagship index after Hang Seng Index and Hang Seng State-owned Enterprises Index. After several months of interval volatility, the Hang Seng Science and Technology Index has initially shown signs of the bottom of the interval.

The main reasons are as follows:

First, the valuation of Hang Seng Technology Stock Index has been very low, but its growth rate has remained at a high level, and its peg rate is lower than that of GEM and NASDAQ 100. Judging from the current situation, the annual P/E ratio of Hang Seng Science and Technology Index 202/KLOC-0 is 33 times, 25 times in 2022 and 20 times in 2023, and the corresponding compound annualized profit growth rate exceeds 30%, and PEG valuation is low. Second, the major heavyweights of the Hang Seng Technology Stock Index, such as some Internet giants, have been at historically low valuations, which means that the bad news has been reflected in the stock price, and there is not much room for future decline. Third, judging from the market trend in recent days, even if there is bad news, the Hang Seng Science and Technology Index has not fallen further, suggesting that it has been basically flat.

The Hang Seng Technology Stock Index is known as the "Nasdaq" of the Hong Kong stock market. The constituents of the Hang Seng Science and Technology Index mainly cover the 30 largest Hong Kong listed science and technology enterprises that are highly related to the science and technology theme, which are basically Chinese-funded science and technology enterprises, covering the fields of network, financial technology, e-commerce and digital. Among them, Tencent, Alibaba, Meituan, Xiaomi, Aauto Quicker, JD.COM, Netease and other well-known companies are among them.

Science and technology index generally has the characteristics of high trend, high R&D investment and high valuation. Referring to Nasdaq 100 Science and Technology Index, SSE Science and Technology Innovation Board 50 Index and other comprehensive market indexes, we can find that the trend of science and technology index is generally better than the market, and R&D investment accounts for a higher proportion of income, higher valuation and higher allocation value.

The Hang Seng Science and Technology Index is no exception. In the past two years, the Hang Seng Technology Stock Index not only outperformed the major global indexes (including Nasdaq), but also surpassed the two flagship indexes of Hong Kong stocks-Hang Seng Index and hang seng china enterprises index.