The Hang Seng Index has officially entered a technical bull market, surging over 20% from its recent low, with Hong Kong-themed ETFs mirroring this upward momentum. Among these, innovative drug-themed ETFs have emerged as the standout performers, skyrocketing nearly 50% during this rebound and delivering year-to-date returns as high as 60% – the strongest across all non-leveraged equity ETFs.
Sector-specific Hong Kong ETFs have participated broadly in the rally, with 48 products (representing over 30% of the total) posting gains exceeding 20%. Non-bank financial and technology-focused sub-sector ETFs have been particularly strong performers, benefiting from improved risk sentiment and capital inflows into growth-oriented segments of the market.
This broad-based advance reflects renewed confidence in Hong Kong’s equity market, driven by attractive valuations and improving fundamentals across multiple industries. The innovative drug sector’s leadership highlights investor preference for high-growth potential areas, while the participation of diverse sub-themes suggests the rally may have sustainable breadth beyond just a few hot sectors. Market technicians note the Hang Seng’s breakout could attract further institutional interest if the index maintains support above key technical levels.
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