Comparison of Investment Value Between Beijing Stock Exchange 50 and Hang Seng Tech Index Under the 2026 AI Industry Cycle

This analysis is based on the investment strategy discussions at the Snowball Carnival on December 22, 2025 (UTC+8), focusing on the comparison of investment value between the Beijing Stock Exchange 50 and Hang Seng Tech Index in the 2026 AI industry cycle, covering key factors such as AI development, credit cycle, and valuation repair.

1. Basic Characteristics of the Indices
   • Hang Seng Tech Index (HSTECH)
     ：Tracks Hong Kong-listed Chinese tech giants, including Tencent, Alibaba, Baidu, SMIC and other enterprises, with ETF code 3032.HK[4]. In 2025, due to AI technology breakthroughs and global expansion expectations, it rose by 41%, outperforming the Nasdaq’s 17% performance[3].
   • Beijing Stock Exchange 50
     : Represents “Specialized, Sophisticated, Unique, and New Manufacturing” enterprises, focusing on AI chip components, industrial automation and other fields, and indirectly participates in the AI industry through the AI hardware supply chain[0].

2. Alignment with the AI Industry Cycle
   • The AI industry will expand from core giants to the entire industry in 2026[1]. The Hang Seng Tech Index benefits from the global application of AI software and cloud computing; the Beijing Stock Exchange 50 benefits from the growth in AI hardware demand, with China’s AI chip sales expected to reach US$54 billion in 2026[2].
   • China’s tech self-reliance policy (such as the US$70 billion chip incentive) will directly promote the development of manufacturing enterprises related to the Beijing Stock Exchange 50[5].

3. Valuation and Driving Forces
   • The valuation of the Hang Seng Tech Index has been repaired, with core driving forces being the global implementation of AI applications and international layout[0];
   • The Beijing Stock Exchange 50, focusing on segmented manufacturing fields, faces less competitive pressure, with driving forces being policy support and the explosion of AI hardware demand[0].

• The two are complementary in the AI ecosystem: the Hang Seng Tech Index represents AI applications and globalization, while the Beijing Stock Exchange 50 represents AI hardware foundations and self-reliance, jointly covering the core links of China’s AI industry.
• The 2026 AI industry expansion cycle will benefit both ends simultaneously; investors can choose based on risk preferences: the Hang Seng Tech Index has higher stability, while the Beijing Stock Exchange 50 has greater growth potential.

• Opportunities
  : Deep AI technology reserves, large space for global expansion, and improved investment value after valuation repair[0];
• Risks
  : Faces regulatory risks and competition from domestic and foreign AI enterprises[0].

• Opportunities
  : Directly benefits from chip industry incentive policies, with high certainty in AI hardware demand growth[5];
• Risks
  : Higher volatility due to smaller enterprise scale, and lower market visibility than the Hang Seng Tech Index[0].

This analysis presents the investment characteristics of the Beijing Stock Exchange 50 and Hang Seng Tech Index in the 2026 AI industry cycle:

• Hang Seng Tech Index: AI application end, tech globalization, large market capitalization, low volatility; faces regulatory and competitive risks;
• Beijing Stock Exchange 50: AI hardware supply chain, specialized/sophisticated/unique/new, policy support, high growth potential; faces small-cap volatility risks.
  Investors should make decisions based on their own risk preferences and investment goals, combined with the AI industry cycle and policy environment.