Market Performance Highlights
As of June 3, 2025, the HK Connect Tech ETF (513860) recorded a 0.88% gain with a trading volume of ¥54.94 million. Key constituents showed strong momentum:
– Oriental Selection surged over 6%
– CanSino Biologics-B and Li Auto-W rose above 5%
– 3SBio and MicroPort Medical followed positively
👉 Discover how stablecoins are reshaping global finance
Long-Term Growth Metrics
- 25.32% cumulative return over the past six months (as of May 30, 2025)
- ¥314 million average daily turnover (ranked #1 among peers)
- ¥1.71 billion fund size, demonstrating robust investor confidence
Regulatory Milestone: Hong Kong’s Stablecoin Law
Key Developments
- May 21, 2025: Legislative Council passed the Stablecoin Bill
- May 30, 2025: Gazette publication formalized it as enforceable law
Market Implications
- Short-term: Enhanced liquidity through regulatory clarity
- Long-term: Facilitates cross-border payments and RMB internationalization via blockchain efficiency
- Industry experts highlight benefits for RWA tokenization and payment infrastructure providers
Institutional Perspectives
| Analyst Firm | Key Insight |
|---|---|
| Orient Securities | Identified growth opportunities for: – Digital tech providers – Payment service platforms – RWA innovators |
| CMSC | Emphasized stablecoins’ role in: – Reducing financial service costs – Improving efficiency – Expanding accessibility |
👉 Explore blockchain investment opportunities today
ETF Deep Dive: HK Connect Tech ETF (513860)
Index Composition
Tracks the CSI HK Connect Tech RMB Index, selecting 50 high-growth tech leaders based on:
– Market capitalization
– R&D investment
– Revenue growth
Performance Metrics
- 32.03% 3-year return (top 6.84% of equity funds)
- 1.70 Sharpe ratio (1-year)
- 0.208% tracking error (industry-leading precision)
Valuation Advantage
- PE ratio of 21.67x (below 97% of historical levels)
- 1.43% YTD drawdown (lowest among peers)
Top Holdings (71.48% weight)
- Xiaomi-W
- BYD
- Alibaba-W
- Tencent
- Meituan-W
FAQ: Stablecoins and Tech ETFs
Q: How does stablecoin regulation impact traditional finance?
A: It bridges decentralized and conventional systems, improving settlement speed while maintaining compliance.
Q: Why invest in HK tech ETFs now?
A: Combines undervalued tech exposure (21.67x PE) with stablecoin-driven liquidity tailwinds.
Q: What risks exist with stablecoin adoption?
A: Regulatory evolution and interoperability challenges require monitoring, though HK’s framework mitigates uncertainty.
Q: How does the ETF select components?
A: Strict criteria prioritize innovation-driven companies with scalable revenue models.
Conclusion
Hong Kong’s progressive stablecoin legislation creates synergies for both crypto-native and traditional investors, with the HK Connect Tech ETF emerging as a prime beneficiary. Its low valuation buffer and high-growth constituent base offer compelling risk/reward dynamics amid evolving digital asset regulations.