Hang Seng AI Advancement ETF

Stock Code: 3438
  • The Fund is an index-tracking fund which aims to match as closely as practicable, before fees and expenses, the HKD denominated total return performance (net of withholding tax) of the Hang Seng Artificial Intelligence Theme Index (the “Index”).
  • The Fund is subject to investment risks, equity market risk, concentration and Mainland-related securities risk, technology and AI themes concentration risk, risk associated with small-capitalisation / mid-capitalisation companies, risk associated with investments in companies with weighted voting rights, passive investment risks, tracking error risks, risk of investing in other collective investment schemes, risks associated with investment in financial derivative instruments, termination risks, reliance on the same group risk and risk relating to securities lending transactions.
  • The Listed Class Units is subject to trading risks (for example, exchange traded price of Listed Class Units may be different from the Listed Class Units’ net asset value) and reliance on market maker risks.
  • Investors may lose substantial part of their investment in the Fund.

Hang Seng AI Advancement ETF (3438.HK)

The First AI-Themed ETF Focused on Hong Kong–Listed Equities1

Tracks the Hang Seng Artificial Intelligence Theme Index (benchmark index) to capture Hong Kong AI growth potential, with low overlap with Hang Seng TECH Index for complementary portfolio exposure.

HK strongly placed to ride global AI wave:

China’s AI sector is cost-competitive, supported by strong open-source ecosystems, AI applications, and innovation, while a Hong Kong listing attracts the participation from international capital.

High growth flexibility:

Focuses on AI-related companies with higher revenue growth rates.

Low overlap with Hang Seng TECH Index constituents2:

Only seven of its constituent stocks overlap with the Hang Seng TECH Index.

Comparison by Index Weightings (%)

Covers High-Growth AI Investment Themes3

Captures the potential of high-growth Hong Kong listed AI companies by covering three key investment themes—AI infrastructure, AI applications, and physical AI.
1

AI infrastructure: includes semiconductors, electronic equipment


  • Advantages: Strong policy support and continuous localization demand
  • Example constituents: SMIC, HUA HONG GRACE, BIREN TECH
2

AI applications: includes large language models (LLMs), image recognition


  • Advantages: Massive data volumes, a wide range of application scenarios and cost efficient
  • Example constituents: SENSETIME, Z.AI (Zhipu AI), MINIMAX
3

Physical AI: includes autonomous driving, robotics


  • Advantages: Comprehensive industry chain, combining low cost with large-scale application environments
  • Example constituents: UBTECH, HORIZONROBOT

Stays Ahead of Hong Kong’s AI Wave

“Hang Seng Artificial Intelligence Theme Index” aims to capture the fast-growing AI sector in a timely manner and will swiftly include large AI stocks that are newly listed in Hong Kong.

Index Methodology4

Universe: includes companies that are listed on the Main Board of the HKEX (Not limited to large- and mid-cap equities; the universe also includes small- and micro-cap equities.)

1
Ensures liquidity and effective tracking
6-month average daily turnover ≥ HKD 20 million
2
Increases the ‘pure play’ AI focus
focuses on 14 business subcategories across the three major areas (information technology, healthcare & industrials), with the aim of capturing AI-enabled growth potential.
3
Selects fast growing AI-related companies
YoY revenue growth must rank in top 60% among eligible securities in the past fiscal year

The index is reviewed and rebalanced quarterly

to keep pace with rapid changes in the AI industry.

Select the 40 securities with the highest market capitalisation rank, then weight constituents by free-float market capitalisation.

Fast Index Entry Mechanism

  • The company’s full market capitalisation ranks within the top 10 of existing constituents on its first trading day.
  • It may be added to the index as early as its 11th trading day and is not tied to the index’s quarterly review cycle5.

As more AI-related companies list in Hong Kong, the fast-entry mechanism facilitates the efficient inclusion of large AI-related companies

Stays ahead of Hong Kong’s AI wave and unlocks further growth potential

About 90% of the constituent stocks were listed on the Hong Kong stock market in the past five years, including Z.AI (Zhipu AI), MONTAGE TECH, PONY, etc.

Number of index constituents – by Hong Kong IPO (Year)6

Index Information7

Index Subsector Weightings (as of 7 September 2026)

Index Top 10 Holdings (as of 7 September 2026)

#
Company Name
Subsector
Index Weightings
1
SMIC
Semiconductors
12.0%
2
HUA HONG GRACE
Semiconductors
11.5%
3
MINIMAX - W
Application Software
9.9%
4
HORIZONROBOT - W
Digital Solution Services
8.3%
5
SENSETIME - W
Digital Solution Services
8.1%
6
UBTECH ROBOTICS
Robotic Systems & Solutions
5.1%
7
XTALPI
Pharma & Biotech Contract Services
4.2%
8
INNOSCIENCE
Semiconductors
3.9%
9
BIREN TECH
Semiconductors
3.6%
10
HESAI - W
Digital Solution Services
3.2%

Fund Information

Key Facts

Investment Objective

The Fund is an index-tracking fund which aims to match as closely as practicable, before fees and expenses, the HKD denominated total return performance (net of withholding tax) of the Hang Seng Artificial Intelligence Theme Index (the “Index”).

Stock Code
3438
Listing Date
28-Sep-2026
Listing Exchange
The Stock Exchange of Hong Kong Limited (the “SEHK”)
Issue Price
7
Lot Size
50
ISIN Code
HK0001352696
Base Currency
HKD
Trading Currency
HKD
Management Fee
Up to 0.55% per annum
Total Expense Ratio (TER)8
0.75%

Underlying Index Information

Underlying Index
Hang Seng Artificial Intelligence Theme Index
Launch Date
25-Sep-2023
Base Value
3000
Review Frequency
Quarterly
Rebalance Frequency
Quarterly
Bloomberg Code
HSAITN
[1]

Source: Hang Seng Investment, Hang Seng Indexes Company Limited, and Bloomberg, as of 7 September 2026. Among AI-themed ETFs listed in Hong Kong, there is no ETF that invests exclusively in Hong Kong-listed equities.

[2]

Source: Hang Seng Indexes Company Limited, as of 7 September 2026. The “technology” theme is based on the classification of equities from Hang Seng Indexes Company Limited.

[3]

Source: Hang Seng Investment, Hang Seng Indexes Company Limited, as of 7 September 2026. “AI infrastructure”, “AI applications”, and “Physical AI” are based on Hang Seng Investment’s classification of equities.

[4]

Source: Hang Seng Indexes Company Limited. For the latest details, please refer to the Hang Seng Indexes Company Limited’s website: https://www.hsi.com.hk/.

[5]

Source: Hang Seng Investment, Hang Seng Indexes Company Limited , as of 7 September 2026. When new constituents are added to the index under the fast-entry mechanism, the number of index constituents may exceed 40. However, at the next quarterly index rebalancing, the number of constituents will be reset to 40.

[6]

Source: Hang Seng Investment, Bloomberg, as of 7 September 2026.

[7]

Source: Hang Seng Investment, Hang Seng Indexes Company Limited, as of 7 September 2026. Index Subsectors are based on the Hang Seng Industry Classification System ("HSICS").

[8]

Source: As the Fund is newly established, this figure is an estimate only and represents the sum of the estimated ongoing expenses chargeable to the units over a 12-month period expressed as a percentage of the estimated average NAV of the units over the same period. The actual figures may be different from the estimate. Please refer to the “Fees and Expenses” section in the Prospectus for details. This figure may vary from year to year.

Disclaimer

The mark and name "Hang Seng Artificial Intelligence Theme Index" are proprietary to Hang Seng Data Services Limited ("HSDS") which has licensed its compilation and publication to Hang Seng Indexes Company Limited ("HSIL"). HSIL and HSDS have agreed to the use of, and reference to, the Hang Seng Artificial Intelligence Theme Index by Hang Seng Investment Management Limited ("the Issuer") in connection with the Hang Seng AI Advancement ETF (the "Product"). However, neither HSIL nor HSDS warrants, represents or guarantees to any person the accuracy or completeness of the Hang Seng Artificial Intelligence Theme Index, its computation or any information related thereto and no warranty, representation or guarantee of any kind whatsoever relating to the Hang Seng Artificial Intelligence Theme Index is given or may be implied. Neither HSIL nor HSDS accepts any responsibility or liability for any economic or other loss which may be directly or indirectly sustained by any person as a result of or in connection with the use of and/or reference to the Hang Seng Artificial Intelligence Theme Index by the Issuer in connection with the Product, or any inaccuracies, omissions or errors of HSIL in computing the Hang Seng Artificial Intelligence Theme Index. Any person dealing with the Product shall place no reliance whatsoever on HSIL and/or HSDS nor bring any claims or legal proceedings against HSIL and/or HSDS in any manner whatsoever. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker or other person dealing with the Product and HSIL and/or HSDS and must not be construed to have created such relationship.

The content does not constitute any express or implied advice or recommendation by HSIL for any investments. HSIL and the Issuer are subsidiaries of Hang Seng Bank Limited which are part of the group of companies under HSBC Holdings plc ("HSBC Group"). Potential conflicts of interest may arise between HSBC Group member(s). To reduce and avoid such conflicts of interest, each of the HSBC Group members has its independent management structure and each entity acts independently and on an arm's length basis.

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