HSBC Asset Management says China’s technology sector remains a key equity theme, even as attention moves towards tensions in the Middle East. It links this to gains in the Shenzhen Chinext index, which it says are supported by advanced manufacturing, green energy and semiconductors.
Over the past two years, the Shenzhen Chinext index, often called the “China Nasdaq”, delivered a double-digit return. China’s latest five-year plan put tech capability as a priority, alongside higher productivity and economic self-reliance.
China Technology Sector Outlook
The plan is part of efforts to rebalance the economy and build domestic sources of growth. The article says tech, AI and other innovation-led industries remain central to China’s equity market outlook.
The article was created with the help of an Artificial Intelligence tool and reviewed by an editor.
The long-term focus on China’s innovation-led sectors remains relevant. We recall the analysis from 2025 which highlighted the ChiNext index’s stellar performance during the 2023-2024 period, driven by strong policy support. This foundation continues to influence our current market view.
Given the ChiNext index has posted a steady 4% gain so far this year, the underlying bullish trend persists. This sustained momentum suggests that buying call options on ChiNext-tracking ETFs could be a viable strategy to capture further upside. We see this as a continuation of the theme that gained traction over the last few years.
Options Strategies For Chinext
Recent economic data reinforces this positive outlook, with China’s Q1 2026 GDP growing by 4.9% and March industrial production figures showing particular strength in high-tech manufacturing. This fundamental support may make selling cash-secured puts an attractive strategy for traders willing to acquire shares on a potential dip. This suggests a solid floor is forming under these key sectors.
We have observed that implied volatility on these indexes has cooled from its highs in late 2025. This environment makes purchasing options less expensive than it was previously. Therefore, initiating long call positions to bet on a rise in the coming weeks is more cost-effective now.
The government’s commitment, reaffirmed during the March 2026 policy meetings, to cultivating “new quality productive forces” provides a significant tailwind. This explicit backing for AI and semiconductors reduces policy risk and strengthens the case for continued investment. It signals that the government’s priorities are unchanged.
Considering the steady but not explosive growth this year, we might also look at bull call spreads. This approach would help finance the purchase of a call option by selling another one at a higher strike price. It lowers the upfront cost while still profiting from a moderate rise in the ChiNext index.
