The performance of the Hang Seng Index in the Hong Kong stock market has shown differentiation, with technology stocks generally under pressure, and the volatility in the South Korean market affecting the sentiment of Hong Kong-related ETFs. By the end of the trading session, the Hang Seng Index fell by 0.22% to 26347.91 points, with a total daily turnover of 262.647 billion Hong Kong dollars; the Hang Seng Technology Index fell by 0.7% to 5070.61 points. As for the Hong Kong stock ETFs, the Heng Fu Fund (02800) fell by 0.23% to 26.48 Hong Kong dollars; the South Hang Seng Technology (03033) fell by 0.6% to 4.968 Hong Kong dollars; the South Double Long Hali (07709) fell by 5.18% to 91.98 Hong Kong dollars. Industry performance The proposal of "AI National Dividends" in South Korea has caused market panic, leading to a roller coaster trend in the South Korea KOSPI Index. Due to panic sentiment and fund outflows, ETFs tracking South Korea and storage concepts collectively retreated. TR Korea (02848) fell by 2.56% to 1842.5 Hong Kong dollars; the South Korean Science and Technology (03431) fell by 2.34% to 10.42 Hong Kong dollars; the South Double Long Hali (07709) fell by 5.18% to 91.98 Hong Kong dollars; the South Double Long Samsung Electronics (07747) fell by 4.69% to 140.2 Hong Kong dollars. In terms of news, Hwang Sun-woo, Vice President of the Korea Financial Supervisory Board, expressed concerns about the overheating signs in the stock market and the expansion of margin financing balances, stating that "necessary measures will be taken to ensure market stability if needed." Meanwhile, the iShares MSCI South Korea ETF, managed by BlackRock, saw a net outflow of 970 million US dollars last week, marking the largest weekly sell-off in history. The South Korea KOSPI Index experienced a daily amplitude of up to 3.3 percentage points, with a reversal from gains to losses during trading hours, falling by over 5% at one point. Nomura analysis suggests that foreign investors who increased their holdings in Korean stocks during the AI market in September and October of last year are taking advantage of the recent market rally to sell off and lock in profits. Nomura also stated that as long as the situation in the Hormuz Strait blockade continues (with disagreements between the US and Iran on ceasefire conditions), the AI-driven market rally may have stronger sustainability. The energy supply impact brought by the Middle East situation has, to some extent, reinforced the market's preference for the AI theme. The theme of domestic substitution is gaining strength, with semiconductor equipment ETFs performing well against the market. Despite the decline in the Hang Seng Technology Index, with the impressive performance of domestic semiconductor companies in the first quarter and the increasing investments by subcontractors in packaging and testing factories, market confidence in self-controlled semiconductor equipment has significantly increased. Related semiconductor ETFs have risen against the market, with the Sci-Tech Semiconductor Equipment ETF Huatai Bairui (588710) rising by 3.76% to 2.293 yuan; the Sci-Tech Semiconductor Equipment ETF Huaxia (588170) rose by 3.61% to 2.212 yuan; the Semiconductor Equipment ETF Huaxia (562590) rose by 2.16% to 2.37 yuan. Guojin Securities believes that companies in the industry chain have seen high growth in performance. On one hand, on the supply side of memory chips, storage companies have started to raise prices for their products. On the other hand, with the capital injection from internet companies, the demand for enterprise-level storage is increasing, and the seasonal stocking of consumer electronics and the strengthening of stock replenishment demand are boosting the memory market into a noticeable upward cycle. Datong Securities analysis points out that from the disclosed first-quarter reports, the gross profit margin of storage chip modules and niche storage has significantly increased, and the profits of semiconductor equipment have been accelerated due to the expansion of semiconductor factories. The performance growth driven by AI is moving from expectations to actual realization, and domestic memory industry chain companies are actively seizing opportunities. Institutional views Analysts from the Morningstar (China) Fund Research Center suggest that investors should not blindly enter the market based on market heat, but should pay attention to the high premium risk of cross-border QDII-ETFs (open-end index funds traded on the mainland that collect RMB funds and invest in overseas capital markets). Once the secondary market buying sentiment is high, it may lead to a significant deviation from the net asset value in the form of a premium, which could result in losses during the process of the premium coming down. In addition, some ETFs have small sizes and insufficient liquidity, and the mismatch in cross-border trading hours could also affect trading execution. Furthermore, QDII-ETF fees are generally higher than domestic products, which could dilute actual returns when held in the long term. ETF trends On May 12th, two funds were listed on the ETF market for the first time: The N Technology Innovation Entrepreneurship Artificial Intelligence ETF China (588480) listed for the first time and rose by 0.29% to 1.034 yuan, with a turnover of 119 million yuan; the fund focuses on the innovation and entrepreneurship in the science and technology board and the growth enterprise market, specifically targeting AI industry chain stocks. The Grain ETF Huaxia (159030) listed for the first time and fell by 1.2% to 0.984 yuan, with a turnover of 24.593 million yuan; the fund focuses on the entire grain industry chain, covering concepts related to grain security, seed industry, and agricultural planting.