Stocks listed in Hong Kong appear to be entering into a bull market after rallying over 20% year-to-date, despite the looming uncertainty over tariffs.
The recent rally comes after years of consolidation following a prolonged bear market. Hong Kong stocks are still down over 20% from the peak in February of 2021.
But in the past six months, Hong Kong’s equity market has been boosted by a jump in IPO market activity, with a significant increase in larger deals.
The growing popularity of DeepSeek has also sparked investor interest towards Chinese tech companies listed in Hong Kong.
It also appears that trade tensions between the US and China have resulted in a deal, which President Trump claims is waiting for approval from President Xi and himself.
Against this backdrop, FSA highlights five Hong Kong equity funds that are up over 20% year-to-date, according to data from FE fundinfo*.
Hang Seng Index Tracking
The Hang Seng Index, which tracks the largest listed stocks in Hong Kong, is up 22.5% in US dollar terms year-to-date.
The tracker fund, managed by Hang Seng Investment Management Limited, has over $5.5bn in assets.
Its largest holdings are capped at 8%, with Tencent, HSBC and Alibaba as the largest three constituents.
HSBC GIF Hong Kong Equity
The HSBC Global Investment Funds (GIF) Hong Kong Equity fund is up 21.6% year-to-date.
Managed by Caroline Yu Maurer, this $157m strategy invests in stocks that carry out the larger part of their business in Hong Kong. It has 75 positions according to its latest factsheet.
The fund has a notable overweight towards tech giant Tencent (9.5%), as well as its parent company HSBC (9%).
Mirae Asset Hang Seng TECH ETF
The Mirae Asset Hang Seng Tech ETF has delivered a 21.2% return year-to-date.
This $215m exchange-traded-fund tracks the performance of the Hang Seng Tech Index, which is composed of the 30 largest tech companies listed in Hong Kong.
These include well known tech giants Alibaba, as well as smartphone maker Xiaomi Corporation and electric vehicle manufacturer BYD Electronic.
Principal Hong Kong Equity
The Principal Hong Kong Equity fund is up 21.2% year-to-date.
Managed by Alan Xi Wang, this $1.56bn strategy invests in a slightly broader bucket of companies stocks listed in Hong Kong. It has 100 positions, according to its latest factsheet.
This fund has an overweight position in the Chinese tech giants Alibaba (9.7%), its largest holding, and Tencent (9.4%).
BEA Hong Kong Growth
The BEA Union Investment Hong Kong Growth fund has delivered a return of 20.7% year-to-date.
This $315m strategy also focuses on Hong Kong businesses, but with a combination top-down macro-economic analysis and bottom-up security selection, according to its factsheet.
This fund also is overweight Chinese tech giants, with its largest positions in Tencent (9.6%) and Alibaba (9.4%).
