Chinese tech stocks have seen a resurgence in 2025, driven by breakthroughs in artificial intelligence (AI) and renewed government support. The Hang Seng Tech Index has soared 34% year-to-date as of March 10, with at one point surging 38% from January 2. This rally has significantly benefited exchange-traded funds (ETFs), making them a key access point for investors looking to capitalize on China’s rebound.
The ETF Winners: HSTECH Leads the Pack
Among the best-performing ETFs is the Lion-OCBC Securities HSTECH ETF, which has climbed 27% as of March 10, far outperforming the Straits Times Index (STI), which is up only 3% in the same period. HSTECH is the most liquid ETF and serves as Singapore’s top China tech proxy on SGX.
Other China-focused ETFs include:
- United SSE 50 China ETF (SSE 50 ETF) – Tracks the Shanghai Stock Exchange 50 Index, mainly large banks.
- Lion-OCBC Securities China Leaders ETF (China Leaders ETF) – Focuses on top Chinese firms.
- Xtrackers MSCI China ETF (MSCI China ETF) – The second-best performer after HSTECH, heavily weighted in tech stocks.
HSTECH’s top holdings include Xiaomi, Alibaba, SMIC, Tencent, JD.com, Meituan, Li Auto, Kuaishou Technology, Xpeng, and NetEase, reflecting China’s AI and electric vehicle (EV) expansion.
China’s Market Dynamics: Policy Support & Economic Shifts
Chinese stocks are also reacting to China’s Two Sessions of the National People’s Congress (NPC), where AI, technology, and economic stimulus took center stage. Analysts suggest that Beijing is prepared to use aggressive fiscal and monetary policies to counter global uncertainties, including U.S. tariffs.
Despite rising tech stocks, China’s real estate sector remains under pressure.
- Yanlord Land Group reported a RMB3.42 billion ($630 million) net loss in FY2024, driven by property write-downs.
- China’s real estate sales dropped 17% YoY, but government stimulus measures are beginning to stabilize the sector.
- CapitaLand China Trust (CLCT) faces a challenging business park and logistics market, with occupancy rates dropping from 91% to 87.6% over the year.
Meanwhile, Sasseur REIT, which focuses on outlet malls, has shown resilience with a 98.9% occupancy rate and stable earnings, despite China’s retail sector struggles.
Singapore’s Access to China Stocks: ETFs & Singapore Depository Receipts (SDRs)
Singapore investors have multiple avenues to trade Chinese stocks, including:
ETFs listed on SGX – Providing broad and sector-specific exposure. Singapore Depository Receipts (SDRs) – Allowing investment in Hong Kong-listed giants like Tencent, BYD, Alibaba, HSBC, Meituan, Xiaomi, Ping An Insurance, and Bank of China, while trading in Singapore dollars.
Despite SDRs’ advantages, adoption has been slow as many traders prefer platforms like Tiger Brokers and Moomoo for direct access to Hong Kong and U.S. stocks.
Global Market Reactions & Future Outlook
As China pivots toward tech-driven growth, Citigroup and other analysts see continued upside in Chinese equities, citing cheap valuations and government support for the sector.
However, global risks remain, with the U.S. markets facing volatility from tariff uncertainty and recession fears. Investors will need to stay vigilant, balancing China’s growth potential against external headwinds.
For Singapore investors, the key takeaway is clear: ETFs and SDRs provide a compelling gateway into China’s evolving market, particularly in AI and EVs, as the country charts its economic recovery.
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