Today, the Hong Kong stock market made a moderate adjustment, with the technology sector rebounding slightly. Tracking the South Korean ETF, there was a decline in the semiconductor equipment ETF towards the end of the trading day. At the close, the Hang Seng Index rose by 0.48% to 25797.85 points, with a total trading volume of 272.166 billion Hong Kong dollars; the Hang Seng Technology Index rose by 0.26% to 4857.46 points. Among the top-performing ETFs in terms of size in the Hong Kong stock market, the performances of the top three products are as follows: Ping An Fund (02800) rose by 0.62% to 25.98 Hong Kong dollars; Southbound Double Bull Hynix (07709) fell by 10.38% to 81.14 Hong Kong dollars; Hang Seng China Enterprises (02828) rose by 0.57% to 88.72 Hong Kong dollars. Industry Performance 1. The South Korean composite index and the South Korean KOSPI200 index continued to decline, with related South Korean ETFs leading the decline. At the close, Southbound Double Bull Hynix (07709) fell by 10.38% to 81.14 Hong Kong dollars; Southbound Double Bull Samsung Electronics (07747) fell by 2.5% to 138.35 Hong Kong dollars; TR South Korea (02848) fell by 3.36% to 1738 Hong Kong dollars. Samsung Electronics' former semiconductor department head Kyung Kyuhyun publicly warned that global storage capacity is expected to surge to a massive scale of 600 trillion wafers per month in the second half of next year, with this supply-side surge leading to a profound reversal in the entire semiconductor cycle by the first half of 2028 at the latest. The longer-term risk is that if tech giants such as Amazon, Microsoft, and Google fail to achieve the expected return on capital expenditure in the field of AI, triggering a phase of investment scale-down, not only will prices plummet, but there is also a risk of a substantial shrinkage in global demand for storage chips after 2028. Affected by this news, combined with the U.S. 10-year Treasury yield rising above 4.5%, foreign capital continues to flow out of the South Korean market, with the KOSPI index falling by over 4% at one point during the trading day, dropping below 7200 points, which is over 10% lower than the historical high set last week. 2. The Sci-Tech 50 Index bottomed out and rebounded, with the semiconductor equipment industry possibly entering a new round of expansion driven by AI. Related semiconductor equipment ETFs rose towards the end of the trading day. At the close, the semiconductor equipment ETF China Merchants (561980) rose by 6.06% to 3.185 yuan; the semiconductor equipment ETF E Fund (159558) rose by 5.31% to 2.977 yuan; the sci-tech semiconductor equipment ETF Huatai Baoer (588710) rose by 5.02% to 2.638 yuan. Huatai Securities pointed out that with the expansion of wafer factories, storage companies, and other production facilities, as well as the development of chips towards new storage technologies, advanced processes, and advanced packaging, the global semiconductor materials market is expected to experience rapid growth. Currently, the overall localization rate of semiconductor materials in China is still relatively low, but with the increasing demand for independent and controllable supplies and the improvement of domestic enterprises' product competitiveness, the localization rate is expected to increase. China Merchants Securities emphasized that the diffusion of AI computing power is driving the improvement of the semiconductor industry chain, and the clear trend of expanding domestic memory production is continuously improving equipment and material orders. In the context of the accelerating increase in domestic production rates, the semiconductor materials and electronic chemicals sectors are showing strong performance elasticity due to factors such as the expansion of storage, product price hikes, etc. Institutional Viewpoints East Money Fund's viewpoint is that the current global semiconductor industry is continuing to thrive, or entering a new upward cycle. The core driving force of this round of market lies in the expansion of AI computing power, where chips are the core hardware infrastructure of computing power and are deeply linked and developed synergistically with the AI and server industry chains. Coupled with low global inventory levels, continuous industry chain adjustments, and the continuous improvement of the industry's fundamentals, the sector's investment value continues to be highlighted. Cathay Haetong stated that the short-term interest rate hike and other risk factors that bring negative pricing disturbances, but the medium-term focus is still on the growth trend of the AI industry. The key to breaking the deadlock in the next phase of the Hong Kong stock market lies in the confirmation of the inflection point of the fundamentals. The Q1 2026 reports of internet companies have solidified the narrative of a fundamental reversal. In terms of allocation, it is recommended to focus on the value of Hong Kong stock dividend bottom positions, with incremental capital support in the medium term, the ability to resist the downward risk brought by geopolitical disturbances in the short term, and benefit from the intensive rights-grabbing of institutions. ETF Trends The N Food ETF Qianhai Kaiyuan (560420) was listed for the first day, with a gain of 0.21% to 0.972 yuan, a turnover of 41.9316 million yuan, tracking the CSI Global Food Index, covering the food and beverage industry.