Hang Seng Tech Still Cheap Despite a 23.5% Rally
The Hang Seng Tech Index $HSI(HSI)$ jumped 23.5% in 2025.
Yet it still trades at about 19X PE as reflected in $KraneShares Hang Seng TECH Index ETF(KTEC)$
That compares with 34X for the Nasdaq $Invesco QQQ(QQQ)$ .
Even if the Hang Seng Tech Index manages to close 50% of that ridiculous valuation gap, it means a 40% upside.
And with so much money pouring into Hong Kong from both the mainland (Stock Connect) and overseas looking to get in on the hottest IPOs, money will naturally find its way to where there is value to be found. NFA
$KraneShares CSI China Internet ETF(KWEB)$ $Alibaba(BABA)$ $Tencent Holding Ltd.(TCEHY)$ $JD.com(JD)$ $MEITUAN(MPNGF)$ $KUAISHOU TECHNOLOGY(KSHTY)$ $NetEase(NTES)$ $Tencent Music(TME)$ $NIO Inc.(NIO)$ $Li Auto(LI)$ $XPeng Inc.(XPEV)$ $Xiaomi Corp.(XIACF)$ $iShares MSCI China ETF(MCHI)$
Hang Seng Tech Index closed near its intraday high, up 4% on the first trading day of 2026.
$Baidu(BIDU)$ popped 9.4% on news of IPO application by its Kunlunxin AI chip arm.
Alibaba broke out of its down trend, rising 4.3%, signaling potentially bigger moves higher in the coming days.
$GDS Holdings Ltd(GDS)$ another AI (cloud) play jumped 5.7% while $Kingsoft Cloud Holdings Ltd(KC)$ gained 3.1%.
Imagine not owning Chinese stocks at the start of 2026.
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