Hong Kong Stock Connect Auto ETFs: Two Indexes Compared by Constituents and Valuation
Nine Hong Kong Stock Connect auto-themed ETFs track either the CSI Hong Kong Stock Connect Auto Industry Index or the Hang Seng Hong Kong Stock Connect Auto Theme Index. The CSI index has 50 constituents with an average market cap of about RMB 137.1 billion, while the Hang Seng index has 40 constituents averaging RMB 168.7 billion. Both indexes trade at price-to-earnings ratios near the 78% and 79% percentile, respectively, over the past decade.
In today's session, several major A-share indices fell before recovering, while the Hang Seng Index opened higher and fluctuated upward. Among thematic sectors, the Hong Kong Stock Connect auto segment performed well, with multiple thematic ETFs posting notable gains. Wind data shows that nine products are currently named after "Hong Kong Stock Connect Auto ETF" plus fund company names, but their scale is generally small, with only one product exceeding RMB 200 million in assets. Most of these products were established recently, with seven launched after 2025. In the first half of 2026, the sector experienced sustained adjustments and drew limited investor attention.
The nine products primarily track two indexes: 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 companies involved in the auto industry from the eligible Hong Kong Stock Connect securities, with an average market capitalization of approximately RMB 137.1 billion per stock. The Hang Seng index includes Hong Kong-listed companies that are tradable via Stock Connect and participate in the auto production value chain, comprising 40 constituents with an average market cap of about RMB 168.7 billion. The two indexes share 32 common constituents, with high weights in Geely Automobile, BYD Company, and XPeng-W, among others. The CSI index has 18 unique constituents, mainly including Hesai-W, Pony AI-W, and WeRide-W; the Hang Seng index has 8 unique constituents, primarily AAC Technologies, SenseTime-W, and BYD Electronic.
Comparing historical performance, both indexes posted negative returns over the past year, with the CSI index declining less than the Hang Seng index. Over three and five years, the Hang Seng index outperformed the CSI index. Over ten years, the CSI index delivered significantly better returns than the Hang Seng index. In terms of volatility, annualized volatility for the two indexes was similar over three and five years, but over ten years, the Hang Seng index showed notably higher annualized volatility than the CSI index.
On valuation, Wind data indicates that the CSI Hong Kong Stock Connect Auto Industry Theme Index currently trades at a trailing twelve-month price-to-earnings ratio around the 78th percentile of the past decade, while the Hang Seng Hong Kong Stock Connect Auto Theme Index is at approximately the 79th percentile. Both indexes sit in the upper-middle range of their historical valuation bands. Each index has had periods of strong performance in the past.