Hong Kong stocks opened higher in early trading on March 3rd, with the Hang Seng Tech Index climbing back above the 5000-point level. Leading internet stocks showed signs of recovery.
In terms of news, Alibaba has open-sourced four small-scale models in its Qwen3.5 series. These models inherit the technical capabilities of the Qwen3.5 family, utilize native multimodal training and the latest model architecture, and are designed to meet diverse needs from extremely resource-constrained environments to high-performance lightweight applications. Shortly after the models' release, Elon Musk praised them on X, commenting, "Amazing level of intelligence."
Regarding market trends, Hong Kong stocks experienced a significant correction yesterday, influenced by factors such as geopolitical conflicts, pushing the Hang Seng Tech Index below 5000 points. Southbound capital seized the opportunity to buy on the dip, with net inflows reaching HK$16.2 billion. Analysis suggests that while a full restoration of market confidence will take time, the technology sector remains a key medium to long-term investment theme for Hong Kong stocks. The recent concerns surrounding AI have, in fact, created buying opportunities, and the rise of China's AI capabilities is expected to bolster market confidence.
Looking ahead, Dongwu Securities indicated that capital flows in the Hong Kong market are relatively sensitive to geopolitical developments. With the current trajectory of US-Iran tensions remaining unclear, the market is concerned about the future direction of oil prices and inflation, leading to a relative consensus to favor safe-haven assets. The performance of the technology sector will depend on when risk appetite returns to US tech stocks.
GF Securities pointed out that the factors suppressing the Hong Kong market are likely to be exhausted by mid-to-late March. If market sentiment improves effectively by then, attention should turn to the Hang Seng Tech Index. Firstly, large AI models require application scenarios for monetization, and progress in consumer-facing applications could catalyze fundamental improvements. Secondly, foreign investors hold significant pricing power over internet stocks; a subsequent reversal in overseas liquidity could lead to greater price elasticity for related stocks.
Positioning for the anticipated 2026 AI commercialization milestone, focus on core AI tools in the Hong Kong market. The Hong Kong Internet ETF (513770) and its feeder funds passively track the CSI Hong Kong Stock Connect Internet Index. Its top ten holdings, which account for over 76% of the portfolio, include tech giants like
For investors bullish on Hong Kong tech but seeking to reduce volatility, consider the first-of-its-kind Hong Kong Large Cap 30 ETF (520560). It employs a "tech + dividend" barbell strategy, with major holdings including high-growth tech stocks like
Investors are reminded that recent market volatility may be high, and short-term price movements are not indicative of future performance. Investment decisions should be made rationally based on individual financial circumstances and risk tolerance, with careful attention to position sizing and risk management.
Data source: Shanghai and Shenzhen Stock Exchanges, etc. The CSI Hong Kong Stock Connect Internet Index's performance over 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 historical performance does not guarantee future results.
Institutional views source: GF Securities report dated February 9, 2026.
ETF fee information: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes fees charged by stock exchanges and registration institutions. Feeder fund fee information: For the Hua Bao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A), the front-end subscription fee is 1% for subscriptions below RMB 1 million, 0.6% for subscriptions between RMB 1 million (inclusive) and RMB 2 million, and a flat fee of RMB 1,000 for subscriptions of RMB 2 million and above. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more; no sales service fee is charged. The Hua Bao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class C) charges no subscription fee; the redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more; the sales service fee is 0.3%.
Risk warning: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. The index 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 index constituents is for illustrative purposes only and does not constitute investment advice of 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 to High Risk, suitable for Aggressive (C4) and above investors. Any information appearing herein is for reference only, and investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice to readers, 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 this fund's performance. Past performance of the fund is not indicative of its future results. Fund investment carries risks, and caution is advised when investing.
A MACD golden cross signal has formed, indicating positive momentum for certain stocks.
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