Hong Kong Stock Connect Auto ETFs Track Two Indices: 50 vs 40 Stocks, P/E Above 78% Percentile
The CSI Hong Kong Stock Connect Auto Industry Index (50 stocks, average market cap RMB 137.1 billion) and the Hang Seng Hong Kong Stock Connect Auto Index (40 stocks, average market cap RMB 168.7 billion) are tracked by nine small-scale ETFs. Both indices have P/E TTM at the 78-79% percentile of their 10-year histories, indicating moderately high valuations. Over the past year both posted negative returns, with the CSI index outperforming; over five years the Hang Seng index fared better, but over ten years the CSI index led. Volatility was similar for recent periods, but higher for the Hang Seng index over the decade.
Today, several major A-share indices fell before recovering, while the Hang Seng Index opened higher and fluctuated with strength. In terms of theme sectors, the Hong Kong Stock Connect auto sector performed well, with several thematic ETFs ranking among the top gainers. There are currently nine products named after 'Hong Kong Stock Connect Auto ETF + fund company', but their scale is generally small, with only one product exceeding RMB 2 billion in size. Most of these products were established recently, with seven launched after 2025. In the first half of 2026, the sector underwent continuous adjustment and attracted low attention.
These nine products mainly track two indices: the CSI Hong Kong Stock Connect Auto Industry Theme Index and the Hang Seng Hong Kong Stock Connect Auto Theme Index. The CSI index selects 50 listed securities from the Hong Kong Stock Connect universe that are involved in the auto industry, with an average market capitalization of approximately RMB 137.1 billion per stock. The Hang Seng index includes Hong Kong-listed stocks accessible via Stock Connect that participate in the auto production theme value chain, with a total of 40 constituents and an average market capitalization of approximately RMB 168.7 billion per stock. The two indices share 32 common constituents, with the highest weights primarily in Geely Automobile, BYD, and XPeng. The CSI index has 18 unique constituents, mainly including Hesai, Pony AI, and WeRide; the Hang Seng index has 8 unique constituents, mainly including AAC Technologies, SenseTime, and BYD Electronic.
Comparing the past performance of the two indices, over the past year both indices posted negative returns, with the CSI index's decline smaller than that of the Hang Seng index. Over the past three and five years, the Hang Seng index outperformed the CSI index. Over the past ten years, the CSI index's returns were markedly better than those of the Hang Seng index. In terms of volatility, over the past three and five years, the annualized volatility of the two indices showed little difference. Over the past ten years, the annualized volatility of the Hang Seng index was significantly higher than that of the CSI index.
The CSI Hong Kong Stock Connect Auto Industry Theme Index's current P/E TTM is at approximately the 78th percentile of its 10-year history, while the Hang Seng Hong Kong Stock Connect Auto Theme Index's current P/E TTM is at approximately the 79th percentile. Both indices' valuation percentiles are in the moderately high range. Both indices have had periods of strong performance in the past.