KTEC ETF: Hang Seng Tech | Hong Kong Technology ETF
by Kraneshares
Capturing The China Internet & Technology Opportunity Through Hong Kong Listings
An Overview of the KraneShares Hang Seng Tech Index ETF
(Ticker: KTEC)
Date: 3/31/2026
KraneShares
Empowering investors with access to the world's most powerful growth themes through ETFs, private strategies, and innovative investment solutions.
Extensive ETF Product Suite Spanning High Growth Sectors
China, Emerging Markets & Regional
China Suite
- KWEB – Internet & E-Commerce
- KBA / CHIN – China A Shares
- KSTR – STAR Market
- KURE – Healthcare
- KGRN – Clean Technology
- KTEC – Hang Seng Tech
- KCAI – China Onshore Alpha Index
Broader Emerging Markets
- KEMQ – Emerging Markets Consumer Tech
- KPHO – Dragon Capital Vietnam Growth
- KEMX – MSCI Emerging Markets ex China
U.S. & Developed Markets
- KVLE – Value Line® Dynamic Dividend Equity
- KSPY – Hedgeye Hedged Equity
- BUYO – Man Buyout Beta Index
Levered & High-Conviction Exposure
- KBAB – 2X Long BABA Daily
- KPDD – 2X Long PDD Daily
- KMLI – 2X Long MELI Daily
- KJD – 2X Long JD Daily
- KBDU – 2X Long BIDU Daily
AI, Robotics & Emerging Technology
Future Tech
- AGIX – Artificial Intelligence & Technology
- KOID – Humanoid & Embodied Intelligence
- KARS – Electric Vehicles & Future Mobility
Income & Covered Call
Fixed Income
- IVOL – Quadratic Interest Rate Volatility & Inflation Hedge
- KCSH – Sustainable Ultra Short Duration
- KHYB – Asia High Income USD Bond
- BNDD – Quadratic Deflation ETF
Covered Call & Options Income
- KLIP – China Internet & Covered Call
- KIQQ – Nasdaq Buffer & Option Income
Alternative Income
- KWIN – Wahed Alternative Income
Alternatives
Carbon Credits
- KRBN – Global Carbon Strategy
- KCCA – California Carbon Allowance
Managed Futures
- KMLM – Mount Lucas Managed Futures
Outcome Based Equity
- KPRO – 100% KWEB Defined Outcome
- KBUF – 90% KWEB Defined Outcome
Strategy also available in UCITS / ETC
KTEC
KraneShares Hang Seng Tech Index ETF
Investment Strategy:
KTEC seeks to track the performance of the Hang Seng Tech index, which captures the 30 largest companies in Hong Kong's rapidly growing technology sector.
KTEC features:
- Holistic exposure to Hong Kong's technology ecosystem, including E-Commerce, 5G, social media, healthcare IT, and more.
- Exposure to companies benefitting from increasing domestic consumption by China's growing middle class
- Exposure to Chinese internet and technology companies listed in Hong Kong
China Technology Sector Highlights:
- In 2024, about 26.8% of the total retail sales in China were made online, decreasing from 27.6 percent in 2023.
- China is a world leader in 5G spending and adoption. By 2025, China is projected to have over 1 billion 5G users, accounting for 38% of total global use.
- In 2024, Chinese companies accounted for 79.8% of the Hong Kong Stock Exchange's total market capitalization, with a combined value of $4.55 trillion.
Why did Hang Seng make the index?
Access to Hong Kong-listed technology companies
China is becoming a world leader in advanced Information Technology hardware production, focusing on 5G equipment and semiconductors. Many of the firms leading these developing industries in China list shares in Hong Kong.
Mainland investor opportunity
In 2024, Chinese companies accounted for 79.8% of the Hong Kong Stock Exchange's total market capitalization, with a combined value of $4.55 trillion.
Growing number of secondary listings
Internet giants like Alibaba, JD.com, and Baidu have chosen to pursue additional listings on the Hong Kong Stock Exchange to capitalize on its growing investor base from Mainland China.
Top IPO location
The Hong Kong Stock Exchange has remained one of the most popular IPO venues globally. In 2024, companies raised nearly USD 11.1 billion through initial public offerings on the exchange, marking a significant increase of almost 89 percent compared to the previous year.
The Hong Kong Stock Exchange is becoming a global leader for new IPOs and secondary listings.
The exchange is one of the most popular IPO venues globally. In 2024, companies raised a total of $83 billion by listing on the exchange.
- Multiple Chinese internet and technology companies listed in the US have pursued secondary listings in Hong Kong, including Alibaba, JD.com, Baidu, and NetEase.
- These companies believe they may receive higher valuations in Hong Kong because Asia-based investors have access to the market and know their businesses intimately.
- The investor base in Hong Kong is also less sensitive to US headline risk, which may improve volatility.
IPO Capital Raised (USD Billions)
| Year | Amount |
|---|---|
| 2018 | 37.11 |
| 2019 | 40.32 |
| 2020 | 51.23 |
| 2021 | 42.1 |
| 2022 | 87.8 |
| 2023 | 123.2 |
| 2024 | 83 |
| 2025 | 37.4 |
Potential Future Secondary Listings
| Company (Ticker) | Primary Business | Current US Market Capitalization ($ Billions) |
|---|---|---|
| Vipshop (VIPS US) | E-Commerce | 8.75 |
| Joyy Inc. (JOYY US) | Live Streaming | 2.98 |
The 3-year average revenue growth rates for the internet and technology companies in the Hang Seng Tech Index are in line with those of comparable US businesses.
Top 10 Hang Seng Tech Index constituents vs. their U.S. equivalents as of 3/31/2026.
| Top 10 Hang Seng Tech Index Constituents | Primary Business | Index Weight | China Internet Companies 3 Year Avg Revenue Growth Rate | Comparable U.S. Business | U.S. Internet Companies 3 Year Avg Revenue Growth Rate |
|---|---|---|---|---|---|
| BYD CO LTD-H | Automobiles | 9.86 | 28% | Ford | 6% |
| MEITUAN-CLASS B | E-Commerce | 9.82 | 19% | Grubhub | -20% |
| XIAOMI CORP-CLASS B | Smartphones | 9.01 | 20% | Apple | 4% |
| TENCENT HOLDINGS LTD | Social Media | 8.49 | 11% | 20% | |
| NETEASE INC | Social Media | 7.93 | 5% | 20% | |
| JD.COM INC-CLASS A | E-Commerce | 4.55 | 8% | Amazon | 12% |
| ALIBABA GROUP HOLDING LTD | E-Commerce | 4.48 | 6% | Amazon | 12% |
| KUAISHOU TECHNOLOGY | Video | 4.45 | 15% | Roku | 15% |
| BAIDU INC-CLASS A | Software | 4.27 | 2% | Activision Blizzard | 35% |
| XPENG INC - CLASS A SHARES | Automobiles | 3.47 | 56% | Ford | 6% |
| Total | 66% | Average: 17% | Average: 11% |
Inflows into Hong Kong remain strong
- In 2023, the total market value of mainland Chinese companies listed on the Hong Kong Stock Exchange (HKSE) exceeded 24 trillion Hong Kong dollars. Companies based in Mainland China represented 76% of the total market capitalization on HKEX.
- As a result of this program, Mainland investors now represent approximately 8.5% of Hong Kong's free-float market capitalization. This number is projected to increase significantly in the coming years.
Cumulative Southbound Stock Connect Inflow Since 12/31/2016
- Since 12/31/2016: $493B
- 2024: $102.9B
- 2025: $140.4B
KTEC provides holistic exposure to Hong Kong's technology ecosystem
Companies included in KTEC have high business exposure to the following selected technology themes.
Key Technology Themes
- E-Commerce
- 5G
- Fintech
- Internet
- Semiconductors
- Cloud Computing
- Social Media
- Healthcare IT
KTEC Sector Breakdown
| Sector | Weight |
|---|---|
| Consumer Discretionary | 42% |
| Communication Services | 37% |
| Consumer Staples | 8% |
| Industrials | 7% |
| Real Estate | 4% |
| Financials | 2% |
Company Introductions
Information Technology
Sunny Optical Technology
- Founded in 1984, Sunny Optical Technology (Group) Co. Ltd. is a leading manufacturer of integrated optical components and products worldwide, best known for its smartphone camera lenses.
- At present, the Company operates in eight business sectors: mobile phone business, automobile business, security business, microscopes business, robot business, AR/VR business, industrial detection business and medical detection business.
- The likely expansion into Apple's supply chain and smartphone users' penchant for more advanced lenses may help Sunny Optical's revenue growth and margin stay above its peer group average over the next few years.
- The company's car-camera modules deliver high margins and could benefit from the global transition toward electric vehicles.
Xiaomi
- Founded in 2010, Xiaomi is an electronics company and one of the top five smartphone vendors in the world. Additionally, Xiaomi makes laptops, appliances, consumer electronics, and many other products.
- Electric vehicles could become a major growth driver. At the Xiaomi EV Technology Launch, Xiaomi officially unveiled the five core technologies of its electric vehicle initiative: E-Motor, Battery, Xiaomi Hyper Die-Casting, Xiaomi Pilot Autonomous Driving, and Smart Cabin.
- Xiaomi profiting from Artificial Intelligence of Things (AIoT) in the 5G era. Xiaomi's core strategy of "Smartphone × AIoT" increased revenue by 12.5% quarter-over-quarter in the last quarter of 2022 to 3.0 billion.
- Increased investments in semiconductors by Xiaomi. Xiaomi wants to become a leading chip manufacturer, and their ambitions are beginning to bear fruit.
Company Introductions
Information Technology
Kingdee 金蝶
- Kingdee International Software Group Company Ltd. is the second-largest enterprise resource planning (ERP) provider in China. It offers both traditional ERP software and cloud-based service to over 6.8mn corporate customers.
- Kingdee currently holds a more than 10% market share in China's ERP space but we believe there is much room for greater market share gains as Chinese companies increasingly favor domestic software.
- Kingdee has developed a comprehensive cloud product portfolio, addressing the needs of enterprises of all sizes, and a Platform-as-a-Service (PaaS) platform that drives ecosystem development.
- The company plans to turn its cloud business into a full subscription-based model in the future.
Technology Areas:
AI — Robot K, the smart business assistant, and the Kingdee Finance RPA Robot
Blockchain — Financial chain for distributed financial accounting and blockchain invoices
5G — Kingdee and China Unicom jointly established Yundee
Cloud Computing — Kingdee cloud native SaaS+PaaS platform
IoT & Big Data — edge computing data box & cloud drive
BYD — Build Your Dreams®
- In 2023, BYD significantly expanded its global presence, recording a 337% increase in overseas sales of new energy passenger cars, which surpassed 240,000 units, making it the leading Chinese exporter of NEVs.
- BYD's new energy passenger vehicles are now available in 64 countries and regions, supported by strategic investments in manufacturing facilities in Thailand, Brazil, Uzbekistan, and Hungary.
- BYD sold more new energy vehicles (NEVs) than Tesla worldwide in 2023.
E-Commerce Ecosystem
Consumer Discretionary
JD.com
JD.com is China's largest online retailer and largest Internet company by revenue ($151.7 billion in 2022).
It has one of the largest fulfillment infrastructure operations across e-commerce companies globally.
Alibaba Group — Global retail marketplace & more
- Online retail: Taobao, TMALL, Freshippo (Offline-online integration)
- International retail: AliExpress, Lazada (SE Asia E-Commerce)
- Wholesale Marketplace: Alibaba.com, 1688
- Food delivery: ele.me
- Video sharing: YOUKU
- Workplace collaboration: DingTalk
- Cloud suite: Alibaba Cloud
- Smart logistics: Cainiao
Meituan Dianping
China's one-stop app for food delivery, groceries, ticket reservations, ridesharing, service appointments, and more.
Company Introductions
Communication Services
Kuaishou Technology
Originally created as a GIF-maker, Kuaishou evolved into a short video social platform, similar to TikTok, where users can record videos to share their lives and personal stories. The company has additional apps for editing and producing photo and video content. Through partnerships with E-Commerce companies, users can purchase featured products within the app.
Baidu 百度
Baidu was founded in 2000 initially as a search engine platform but subsequently became an early adopter of artificial intelligence to make content discovery on its internet platform more efficient. Currently, Baidu consists of an expansive mobile ecosystem, AI cloud platform, smart driving solutions, and more.
Baidu products include: AI search, video, streaming, and Apollo (autonomous driving).
NetEase
Founded in 1997, NetEase, Inc. is a leading China-based internet technology company that develops and operates some of China's most popular online PC and mobile games as well as operates a range of internet services such as online education, online music, internet media and others.
Products include: NetEase Games, NetEase Music.
Tencent
Tencent operates across multiple segments:
- Social media & messaging (WeChat)
- Gaming
- E-Sports
- Film
- Music
- Blockchain
- Fintech
KraneShares Hang Seng TECH Index ETF
Investment Strategy
KTEC seeks to track the performance of the Hang Seng TECH Index, which captures the 30 largest companies in Hong Kong's rapidly growing technology sector. The Index provides exposure to innovative companies with strong research & development investment, high revenue growth, and themes such as cloud, E-Commerce, fintech and internet. The Index is free-float market capitalization weighted with an 8% cap on individual constituent weighting.
Fund Details — Data as of 3/31/2026
| Detail | Value |
|---|---|
| Primary Exchange | NYSE Arca, Inc. |
| CUSIP | 500767579 |
| ISIN | US5007675797 |
| Total Annual Fund Operating Expense | 0.69% |
| Inception Date | 06/08/2021 |
| Distribution Frequency | Annual |
| Underlying Index | Hang Seng TECH Index |
| Net Assets | $50,736,158 |
| Number of Holdings | 31 |
Top 10 Holdings as of 3/31/2026
| Holding | Ticker | % |
|---|---|---|
| BYD CO LTD-H | 1211 | 9.86 |
| MEITUAN-CLASS B | 3690 | 9.82 |
| XIAOMI CORP-CLASS B | 1810 | 9.01 |
| TENCENT HOLDINGS LTD | 700 | 8.49 |
| NETEASE INC | 9999 | 7.93 |
| JD.COM INC-CLASS A | 9618 | 4.55 |
| ALIBABA GROUP HOLDING LTD | 9988 | 4.48 |
| KUAISHOU TECHNOLOGY | 1024 | 4.45 |
| BAIDU INC-CLASS A | 9888 | 4.27 |
| XPENG INC - CLASS A SHARES | 9868 | 3.47 |
KTEC Performance History as of 3/31/2026
| 3 Mo | 6 Mo | Since Inception | 1 Yr | 3 Yr | 5 Yr | Since Inception | |
|---|---|---|---|---|---|---|---|
| Fund NAV | -15.40% | -27.87% | -44.15% | -14.71% | 1.58% | – | -11.40% |
| Closing Price | -12.39% | -25.45% | -42.61% | -12.68% | 2.84% | – | -10.89% |
| Index | -16.23% | -28.52% | -40.21% | -13.61% | 3.57% | – | -10.13% |
Important Notes
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting www.kraneshares.com/ktec/. Read the prospectus carefully before investing.
Risk Disclosures
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.
- The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses.
- The Fund is subject to liquidity risk and counterparty risk.
- The Fund's ability to achieve its investment objectives is dependent on the continuous availability of A Shares and the ability to obtain additional A Share quota.
- The Fund is subject to political, social or economic instability within China which may cause decline in value.
- Emerging markets involve heightened risk, increased volatility and lower trading volume.
- Fluctuations in currency of foreign countries may have an adverse effect on domestic currency values.
- The Fund may invest in Initial Public Offerings (IPOs), which have no trading history and may be highly volatile.
- Narrowly focused investments typically exhibit higher volatility. KTEC is non-diversified.
- ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund.
Index Definitions
Hang Seng Tech Index: The Hang Seng Tech Index represents the 30 largest technology companies listed in Hong Kong that have high business exposure to technology themes and pass the index's screening criteria. The index was launched on July 27, 2020.
Southbound Connect Flow: Denotes the daily value of stocks purchased on the Hong Kong Stock Exchange by investors with Mainland accounts through the Stock Connect program. (Ticker H1DBTO Index)
