LENOVO GROUP's USD 54 Billion AI Server Pipeline and a Broad Recovery in Hong Kong Blue Chips; CSOP FTSE East-West Equity Select ETF (03441.HK) Gains 30.51% Year to Date

Wind data show that CSOP FTSE East-West Equity Select ETF (03441.HK) closed at HKD 13.62 as of 22 September, up 0.29%, with turnover of about HKD 38.83 million that day; as of 22 September, the fund's size stood at about HKD 1.995 billion with a net asset value per unit of HKD 13.5698 and 147 million units in issue, up 10 million units from 137 million the previous day, while turnover on 21 September reached about HKD 339 million on a sharp volume increase.

On performance, the product rose 30.51% year to date, 21.88% over the past six months and 37.76% over the past year, while the Hang Seng Index returned -2.12%, -0.75% and -4.77% and peer funds returned +13.04%, +14.38% and +16.69% over the same periods, leaving the ETF ahead of the Hang Seng Index by about 32.6 percentage points and ahead of peers by about 17.5 percentage points during the year; over the same periods, however, its tracking index (FTSE ETF Connect East-West Succession Equity Select Index) returned +38.75%, +29.28% and +46.92%, with the product lagging the benchmark by about 8.2, 7.4 and 9.2 percentage points across the three periods, reflecting the drag from fees and swap costs. Hong Kong blue chips extended their recovery on 23 September, with CHINA OVERSEAS up 2.33%, CHINA RES LAND up 2.06%, LI AUTO-W up 1.95% and WHARF REIC up 1.04%; top holding LENOVO GROUP hit an intraday record high on 18 September and has gained about 300% year to date.

On the news front, the positives: LENOVO GROUP's FY26/27 first-quarter revenue reached USD 26.943 billion, up 43.09% year on year, adjusted net profit reached USD 1.075 billion, up 176%, revenue from its infrastructure solutions business reached USD 8.510 billion, up 98.4%, with its operating margin rising to 9.1%, and AI server pipeline orders stood at USD 54 billion, up 157% quarter on quarter; IDC data show its second-quarter x86 server shipments rose to first place globally for the first time, with a 7.4% share. Morgan Stanley maintained an Overweight rating with a target price of HKD 46, and southbound capital recorded net buying of HKD 325 million on 16 September, the highest since early August. On 23 September, LEGENDHOLDING planned to sell about 90% of Banque Internationale à Luxembourg at a valuation of no less than EUR 2.5 billion, with Citi expecting more than HKD 20 billion of proceeds and maintaining a Buy rating and a target price of HKD 21.5. Hong Kong's property chain rose broadly on 23 September, with heavyweight constituents such as CHINA OVERSEAS and CHINA RES LAND strengthening. On the downside: the product lagged its tracking index by about 8.2, 7.4 and 9.2 percentage points over the year-to-date, six-month and one-year periods respectively, with swap fees and the 1.2% total expense ratio continuing to weigh on tracking performance; as of 18 September, the Hang Seng Index had fallen 3.13% and the Hang Seng TECH Index 6.69% since the start of September, pointing to rising volatility; the US sleeve is exposed to Fed rate hikes and oil price swings; and the top holding accounts for about 12.9% of the portfolio, so single-name volatility has a sizeable impact on net asset value.

Managed by CSOP Asset Management Limited and listed in Hong Kong on 31 March 2025 with a total expense ratio of 1.2%, the product tracks the FTSE ETF Connect East-West Succession Equity Select Index (Net Total Return version), compiled by FTSE International Limited: 65% of the weight is allocated to the 23 largest high-dividend stocks listed on the Stock Exchange of Hong Kong that qualify for Southbound Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect (8% cap on any single stock, weighted by modified free-float market capitalization, reviewed semi-annually), and 35% to the top 100 large-cap quality US-listed stocks ranked by free cash flow yield over the trailing 12 months (5% cap on any single stock, rebalanced quarterly). The product combines a physical representative sampling strategy (50%-100%, with up to 100% of net asset value directly invested in stocks listed on the HKEX and Nasdaq) with financing total return swaps (no more than 50%), may engage in securities lending of up to 50% of net asset value (about 20% expected) and distributes annually. According to third-party holdings data as of 17 September, its top ten holdings totalled about 49%: LENOVO GROUP about 12.9%, HSBC HOLDINGS about 5.8%, BOC HONG KONG about 5.7%, CLP HOLDINGS about 4.6%, CK ASSET about 4.1%, POWER ASSETS about 4.0%, HK & CHINA GAS about 3.8%, SITC about 3.1%, MTR CORPORATION about 2.5% and WH GROUP about 2.5%, with a balanced mix across technology, real estate, financials, utilities and industrials that combines the defensive high-dividend profile of Hong Kong stocks with US free-cash-flow leaders. The product has been included in the Southbound ETF Connect, allowing mainland investors to buy directly through Stock Connect without QDII quota limits, and suits medium- to long-term investors seeking a cross-market "high dividend plus quality cash flow" allocation with both offense and defense. Risk warning: for reference only; this is not investment advice; past performance does not guarantee future results; invest with caution. (Data source: ROYALFLUSH INFO iFinD, as of 23 September 2026)

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