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Data as of 28 03 25
It’s time to take a look at the neglected Hang Seng Technology Index and gain exposure to it with an ETF based on it. The iShares Hang Seng Tech ETF trading on HKSE under ticker symbol 9067 has good liquidity.
The HS Tech is a good proxy for gaining exposure to China’s tech giants. See attached pdf for its constituent stocks. As of 28 Feb, the Hang Seng Technology Index (HSTech) has not yet established a definite trend but as the old adage says, “the early brid catches the worm”. Of course, there is some degree of risk at this earlier stage of a developing trend, but “no risk no gain”, and “no free lunch” applies.
Our models show the 1-20 steps autoregressive forecast trend to be positive. (For an understanding of our models and our methodology, please read the article in the Learning Corner of our website.)
One way to gauge the short-term potential of HSTech is to look at the forecast trend for its top 5 constituent stocks with the heaviest weightings. They are:
Xiaomi (1810) 9.95%; JD-SW (9618) 8.08%, BABA (9988) 7.82%; TENCENT (0700) 7.42%; SMIC (0981) 7.09%. Total weighting of all 5 = 40.26%.
So here are the 1-20 steps forecast trend of all 5 stocks. Visualize and compare with the HSTech forecast trend above. For now, we will not give the Support and Resistance price levels of the five stocks. We will do that next week when, if as expected the HSTech continues to improve on its positive performance.
XIAOMI
ALIBABA
TENCENT
SMIC
Summary
All five top weighting stocks have positive forecast trend. The weakest forecast trends are AliBaba which is just beginning to stabilize and JD.com which is still in indecisive territory. The strongest are Xiaomi and SMIC.
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