To The Moon

At the capital level, southbound funds continued to flow in substantially. On August 15, the net purchase of Hong Kong stocks in a single day was HK $35.876 billion, setting a new record since the launch of the interconnection mechanism. ETFs related to technology indexes have also received continuous capital inflows in recent days. The scale of the Hang Seng Technology Index ETF exceeded 35.3 billion yuan, a record high.

Institutions are optimistic about the potential of technology indexes to make up for growth

Zheshang Securities pointed out that in this round of market conditions, the performance of the Hang Seng Technology Index lagged behind significantly. In addition to the profit expectations affected by the "take-out war", the continued weakness of the Hong Kong dollar exchange rate led to the liquidity tightening of the Hong Kong Monetary Authority, which was also an important reason. Data show that in order to stabilize the exchange rate, the HKMA has continued to recover liquidity since the end of June. At present, inter-bank liquidity in Hong Kong has basically returned to normal levels, and the Hong Kong dollar exchange rate has appreciated significantly. There is limited room for further tightening of liquidity in the future.

In addition, at the annual meeting of global central banks in Jackson Hole, Federal Reserve Chairman Powell said that "while policies are still in the tightening range, changes in the benchmark outlook and risk balance may require us to adjust policies", releasing a dovish signal. Global liquidity easing expectations are expected to further strengthen the logic of liquidity improvement in Hong Kong stocks, and the Hang Seng Technology Index, which has performed relatively weakly recently, may have room to make up for growth.

Shen Hongyuan also believes that the underperformance of the Hong Kong stock index is only a phased consolidation after the rapid rise in the early stage. As the results of the interim report are disclosed one after another, the sectors with previous low performance expectations, negative expectations have been basically digested, and light transactions are expected to regain market attention. At present, it has entered the time for the left-hand layout of weighted sectors such as the Hong Kong stock Internet and the Hang Seng Technology Index, and sectors such as cycle and mass consumption also have the potential to make up for growth.

Lin Rongxiong's team of SDIC Securities pointed out in the research report that judging from the 60-day rolling yield difference, there is an obvious alternating rotation relationship between the GEM Index and the Hang Seng Technology Index in history. When the GEM index is 20 percentage points ahead of Hang Seng Technology, it often means that the latter will usher in a supplementary increase. At present, the difference in yields between the two has reached 18 percentage points, suggesting that the Hang Seng Technology Index, which also has the attributes of "institutional heavy positions" and "anti-barbell strategy", is expected to usher in a compensatory market under the background that the GEM index has sharply led the rise and approached a new high.

For investors who want to go long on Zhonggai technology stocks, they can consider adopting a selling put option strategy at this time.

Go Long with Put Options on KWEB

Current$China Overseas Internet ETF-KraneShares (KWEB) $The current price is $38.38, and we can sellExpires October 17, 2025, exercise price 38, premium $141Put Option (Put Option) to go long on Chinese technology stocks.

Not only can this strategy profit when KWEB rises, even if KWEB moves sideways or falls slightly, you can still rely on premium to earn gains.

Maximum benefit:If the KWEB share price is higher than or equal to $38 at expiration, the option will not be exercised and you retain the full premium. The maximum gain is $141.

Maximum loss:If the KWEB share price drops to $0, you need to buy 100 shares at $38 for a total cost of $3,800. Subtracting premium received of $141, the maximum loss was $3,659.

Break-even point:The breakeven point is $36.59 (i.e. the exercise price of $38 minus $1.41 per premium). As long as the KWEB share price is above $36.59 at expiration, you are in a net profit.

Advantages:

• The limited gain ($141) is locked in at the start;

• Higher winning rate, as long as the stock price does not fall sharply, you can make a profit;

• If you want to buy KWEB in the first place, this way can reduce the buying cost.

Risk warning:

• Profit and loss are asymmetric, the maximum income is limited, but the potential loss is large;

• Requires a margin account to support selling naked Put;

• Closing positions before expiration or rolling operations can be considered to dynamically manage risk.