"Middle East Tycoons" Make a Comeback in Hong Kong! Hong Kong Tech Stocks Surge Pre-Market, AI Giants Add New Momentum

Why is Middle Eastern capital choosing to flow back into the Hong Kong market now?

On March 17, positive signals emerged in the Hong Kong tech sector before the market opened, with the Hang Seng Tech Index rising 0.5% pre-market. A major piece of news from Hong Kong media ignited market sentiment: recently, inquiries from Middle Eastern clients about investing in Hong Kong stocks and establishing Hong Kong family offices have surged over 50% month-on-month, with nearly 30% of these being large Middle Eastern families that migrated to Singapore and Dubai years ago, now planning to reallocate 15%-20% of their assets back to Hong Kong. This indicates that hundreds of billions of dollars in Middle Eastern capital are quietly flowing back.

Meanwhile, new developments are fueling the industry. Alibaba has integrated its AI business to establish Alibaba Token Hub, accelerating the commercialization of large models and adding an AI catalyst for Hong Kong tech giants.

Analysis shows that the return of Middle Eastern capital is not an isolated event but a natural result of a “valuation bottom + policy bottom + fundamentals bottom” threefold resonance:

First, valuation lows attract global capital. After a long adjustment, the valuation of Hong Kong’s tech sector is at a historic low. The Hang Seng Tech Index’s price-to-earnings ratio is below 20, compared to over 30 for major U.S. tech giants, highlighting its cost-effectiveness. The re-entry of Middle Eastern wealthy families reflects the global capital re-pricing Hong Kong’s tech stocks.

Second, policy support is strengthening, with family offices becoming a new focus. Hong Kong has recently introduced policies offering tax incentives and talent attraction to develop into a global wealth management hub. Middle Eastern families who migrated to Singapore and Dubai for various reasons are now being drawn back by Hong Kong’s policy benefits and geographic advantages. A 15%-20% asset reflow suggests a massive capital influx of trillions of dollars is underway.

Third, AI commercialization is accelerating, providing new momentum for giants. Alibaba’s establishment of Alibaba Token Hub marks a shift from “platform economy” to “AI economy” for Chinese internet giants. The commercialization of large models is no longer just a story but a tangible growth driver. Hong Kong tech leaders like Tencent, Meituan, and Baidu are all deeply involved in AI development.

For the Hong Kong tech sector, three major ETFs may present opportunities:

Hong Kong Stock Connect Technology ETF (159125): Focuses on leading tech innovators within the Hong Kong Stock Connect, covering AI, internet, healthcare, and new consumer sectors.

Hong Kong Tech 50 ETF (159750): Selects the top 50 Hong Kong tech companies, including Alibaba, Tencent, Meituan, Xiaomi, BYD, and SMIC.

China Concept Interconnected ETF (513220): Spans Hong Kong, China, and U.S. markets, sharing in the valuation re-rating of platform economies in the AI era.

Looking ahead, with valuations at the bottom, policies gaining momentum, and fundamentals recovering, the threefold resonance suggests that the Hong Kong tech sector, with its safety margin and growth potential, is entering a golden window for allocation. The return of Middle Eastern capital may just be the opening drumbeat of a global capital reassessment of Chinese tech assets.

Risk warning: Funds are subject to risks; investment should be cautious.