Chinese tech (Hang Seng Tech)
The Chinese tech giants in one fund: Tencent (WeChat), Alibaba, Meituan, JD, Xiaomi, NetEase, Baidu, Kuaishou. All listed in Hong Kong. Very high upside potential, but Chinese regulators have repeatedly crushed these companies.
Returns shown in USD (your base currency). Past performance is not a reliable guide to future results.
- Direct exposure to China's tech ecosystem
- Cheap valuations after years of selloff
- Big names you've heard of: Tencent, Alibaba, JD
- Regulatory risk: Beijing can rewrite the rules overnight
- Lost 70% from 2021 peak to 2022 trough
- Geopolitical tension with US adds delisting risk
About this fund
Tracks the Hang Seng Tech Index - the 30 largest tech companies listed in Hong Kong, most of them Chinese. The 'Nasdaq of China' but with much higher regulatory and political risk. Has gone through major drawdowns (-70% from 2021 peak to 2022 trough).
Available on Interactive Brokers
Low-cost access to Chinese tech (Hang Seng Tech) and 10,000+ funds worldwide.
Frequently asked questions
Is HSTC.L accumulating or distributing?
HSBC Hang Seng Tech UCITS ETF (HSTC.L) is an accumulating ETF, so its dividends are reinvested automatically inside the fund instead of paid out as cash. The value compounds in the share price, which keeps things simple since the dividends are reinvested for you instead of arriving as cash you would otherwise have to reinvest yourself.
What is the annual fee (TER) for HSTC.L?
HSTC.L has a total expense ratio (TER) of 0.50% per year. On a $10,000 holding that is roughly $50 a year, charged inside the fund rather than billed to you separately. A lower fee leaves more of the return compounding for you over time.
Can I buy HSTC.L on Interactive Brokers?
Yes. HSTC.L trades on LSE, GBP and is available to investors worldwide through Interactive Brokers (IBKR). IBKR is the most popular way to buy UCITS ETFs because of its low FX conversion cost (around 0.03%) and low trading commissions.
What does HSTC.L invest in?
HSBC Hang Seng Tech UCITS ETF (HSTC.L) tracks the Hang Seng Tech. The Chinese tech giants in one fund: Tencent (WeChat), Alibaba, Meituan, JD, Xiaomi, NetEase, Baidu, Kuaishou. You buy one fund and get the whole basket in a single trade.
Is HSTC.L a UCITS ETF, and where is it domiciled?
Yes, HSTC.L is a UCITS ETF domiciled in Ireland. For non-US investors, Irish-domiciled UCITS ETFs are usually preferred over US-domiciled ones: US dividend withholding tax is 15% under the tax treaty (versus 30% on US-domiciled funds for many non-US investors), and the holdings sit outside US estate tax.
How risky is HSTC.L?
On the TickerCompare 1 to 5 scale, HSTC.L is rated higher risk (5/5), based on how much its price has moved historically. Higher-risk funds can fall further in a downturn, so match the choice to your time horizon and how much volatility you can stomach.