On January 7th, the Hong Kong stock market, which had a strong start to the year, reversed course and headed downward. The three major indices opened lower and continued to decline throughout the session. By the market close, the Hang Seng Index and the Hang Seng Tech Index had fallen by 0.94% and 1.49%, respectively. Tech giants experienced a short-term pullback, with Alibaba-W dropping over 3%, KUAISHOU-W falling more than 2%, and Tencent Holdings, Meituan-W, Xiaomi Group-W, and Bilibili-W all declining over 1%.
The core AI asset in Hong Kong stocks, the Hong Kong Internet ETF (513770), opened low and closed lower, with its price finishing down 2.54%. It maintained a wide premium throughout the trading day, indicating active buying interest from funds capitalizing on the dip. The Hong Kong Internet ETF (513770) has been consistently attracting capital inflows recently. Data from the Shanghai Stock Exchange shows that approximately 318 million yuan flowed into the fund over the past five days. As of January 6th, the fund's units exceeded 24 billion, setting a new historical record.
During the first two trading days of the new year, leading tech stocks propelled a strong rally in the Hong Kong market, dispelling previous weakness and capturing market attention. Analysis suggests that a combination of improved liquidity and corporate profitability is driving the Hong Kong stock market's recovery, and short-term fluctuations may not alter the long-term trend of valuation repair.
In fact, the sector was buoyed by the convergence of multiple positive factors today, making its investment value noteworthy.
On the liquidity front, expectations for Federal Reserve interest rate cuts in 2026 have intensified. Federal Reserve Governor Milan stated in a recent speech that subsequent economic data trends could support further rate cuts, suggesting the Fed should cut rates by more than 100 basis points this year. Analysts point out that a significant easing of external liquidity pressures is expected to provide a "golden window" for the valuation recovery of Hong Kong's tech stocks.
Regarding AI catalysts, the "pet dancing" AI video trend has exploded in overseas markets this new year, leading to a massive surge in revenue for Kuaishou's Kling AI mobile app. Data indicates that since the start of the year, the average daily revenue from Kling AI's mobile platform has skyrocketed by 102% compared to December 2025. JPMorgan stated that Kuaishou holds a leading position in the critical field of generative AI, calling it "one of the world's cheapest AI stocks."
Additionally, a recent Citigroup research report identified Tencent Holdings and Alibaba-W as its top picks for core AI concept stocks. The report expressed optimism about Tencent's AI development prospects in enterprise and user applications, and was positive on Alibaba's potential for cloud revenue growth and efficiency improvements.
Public information shows that the Hong Kong Internet ETF (513770) and its feeder funds (Class A: 017125; Class C: 017126) passively track the CSI Hong Kong Stock Connect Internet Index. The index's constituent stocks concentrate on companies involved in AI cloud computing, large models, and AI applications across various sectors, including Alibaba-W, Tencent Holdings, and KUAISHOU-W. The top ten holdings account for over 78% of the index, highlighting significant concentration in leading companies.
For those bullish on Hong Kong tech but seeking to reduce volatility, consider the market's first Hong Kong Large Cap 30 ETF (520560). It employs a "tech + dividends" barbell strategy, with top holdings including high-growth tech stocks like Alibaba and Tencent Holdings, alongside stable high-dividend payers such as China Construction Bank and Ping An of China, making it an ideal core holding for long-term Hong Kong market allocation.
A reminder: Recent market volatility may be significant, and short-term gains or losses are not indicative of future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.
Data source: Shanghai and Shenzhen Stock Exchanges, etc. The annual performance of the CSI Hong Kong Stock Connect Internet Index for the past five full years is as follows: 2021, -36.61%; 2022, -23.01%; 2023, -24.74%; 2024, 23.04%; 2025, 27.02%. The index's constituent stocks are adjusted according to its compilation rules, and its past performance does not predict future results.
Institutional views source: Guosen Securities report dated January 5, 2026, "Hong Kong Stock Repair Rally Has Begun, AI Direction Still to Be Focused On"; JPMorgan report dated January 5, 2026, "Kuaishou (01024.HK) – One of the World's Cheapest AI Stocks, Boosted by Kling AI's Overseas Popularity and AI-Powered Advertising Growth"; Citigroup report dated December 1, 2025, "China Internet Outlook for First Half of 2026".
Risk提示: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. The index's base date is December 30, 2016, and it was published on January 11, 2021. The index's constituent stocks are adjusted according to its compilation rules. The mention of individual stocks herein is for illustrative purposes only and does not constitute investment advice in any form, nor does it represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses this fund's risk level as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses resulting from the use of this content. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance of the fund is not indicative of its future performance. Fund investment carries risks, and caution is advised when investing in funds.
MACD golden cross signals have formed, and these stocks are performing well!
Comments