CITIC Securities says with limited aggregate funds, tech and biotech—high‑beta, valuation‑and‑liquidity sensitive growth sectors—tend to trade off against each other. Southbound flows in 2026 have been relatively weak; since June foreign capital has returned to Hong Kong stocks and now dominates marginal pricing power. That dynamic has driven sustained outflows from the Hang Seng Tech index and inflows into biotechnology, leaving Hang Seng Tech relatively weak and biotech relatively strong. Both

CITIC Securities says with limited aggregate funds, tech and biotech—high‑beta, valuation‑and‑liquidity sensitive growth sectors—tend to trade off against each other. Southbound flows in 2026 have been relatively weak; since June foreign capital has returned to Hong Kong stocks and now dominates marginal pricing power. That dynamic has driven sustained outflows from the Hang Seng Tech index and inflows into biotechnology, leaving Hang Seng Tech relatively weak and biotech relatively strong. Both Hang Seng Tech and Hang Seng Biotech indices are under notable pressure in a high‑rate environment. Given expected global liquidity tightening, the firm recommends prioritising defensive, high‑dividend sectors such as power, telecoms and utilities.