The ChiNext Index, which includes prominent tech firms like Contemporary Amperex Technology Co. Ltd., has surged nearly 100% over the past year, reaching an 11-year high. In contrast, Hong Kong's Hang Seng Tech Index, featuring major players like Tencent Holdings Ltd., has declined by 4% during the same timeframe. This divergence is attributed to the ChiNext's focus on hardware manufacturers benefiting from rising demand for artificial intelligence (AI) and advancements in lithium battery technology, which provide clearer earnings visibility. Fund manager Xiadong Bao noted that the strong order books in hard-tech sectors make them more attractive for investors wary of the slow recovery in consumer spending in China. While some Hang Seng stocks are making strides in AI, they face challenges from intense competition and margin pressures. Forward earnings estimates for the Hang Seng Tech Index have fallen by 26% since July, while ChiNext's estimates have increased by 42% from a June low. The introduction of ChiNext-linked futures is expected to attract more investment, enhancing its appeal as a technology-focused index.