Optimism surrounding U.S.-Iran negotiations fueled overnight gains in U.S. stocks, with the Nasdaq and S&P 500 both reaching new record highs. On April 16, Hong Kong stocks continued their upward trend, led by strong performances from major technology and internet companies. Alibaba-W opened more than 3% higher, while Tencent Holdings, Kuaishou-W, and Xiaomi Group-W each rose over 1%. Bilibili-W and Meituan-W also saw gains. The Hong Kong Internet ETF Huabao (513770), a key tool for accessing Hong Kong's AI sector, saw its price rise over 2% at one point during the session and is currently up 1.63%.
The most immediate catalyst for this rebound is the marginal easing of geopolitical risks in the Middle East. Meanwhile, the ongoing AI wave remains a key driver for the recovery in Hong Kong's internet sector. Recent AI developments from major tech leaders have been frequent. Alibaba's multimodal model, HappyHorse-1.0, has topped the global AI video generation rankings, and Tencent's Hunyuan 3.0 large model is set for a mid-month release. Furthermore, the acceleration of AI commercialization is evident, with Tencent Cloud announcing its second price increase within a month, while Alibaba Cloud has already implemented three price hikes.
A recent Stanford University report on AI cloud computing indicates that the performance gap between Chinese and U.S. large AI models has narrowed to a historic low. As of March 2026, the lead of Anthropic's top model over China's best has shrunk to just 2.7%. Among the world's top AI models in 2025, Alibaba ranked third globally with 11 model releases. Huatai Securities noted that the valuation of Hong Kong's internet sector is at a historical low. The profitability of leading Hong Kong tech companies has shown signs of improvement, with consensus EPS growth expectations for the index exceeding 40% in 2026. As the trend of "anti-involution" becomes clearer and corporate cost-cutting and efficiency measures progress, the sector could see a dual boost from both valuation re-rating and earnings performance in the second quarter of 2026.
Guoyuan International pointed out that profit expectations for the internet sector have already undergone some adjustment. Policy catalysts and the boost from new industry trends are expected to be the main drivers pushing the sector's valuation higher. The technological revolution, represented by AI, continues to inject momentum into the tech sector, with the market now embracing the narrative of AI innovation and future scale growth. The firm suggests appropriately increasing allocations to the internet and technology sector.
To capitalize on what is seen as the first year of AI commercialization in 2026, focus is 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 include tech giants like Alibaba-W and Tencent Holdings, as well as AI application companies across various sectors, offering significant leading advantages. The ETF offers intraday T+0 trading and good liquidity.
For investors bullish on Hong Kong tech but seeking to reduce volatility, the Hong Kong Large Cap 30 ETF (520560) presents an option. It employs a "tech + dividends" barbell strategy, holding both high-growth tech stocks like Alibaba and stable, high-dividend stocks from sectors like banking and insurance, making it an ideal core holding for long-term Hong Kong market exposure.
Investors are reminded that recent market volatility may be significant, and short-term price movements are not indicative of future performance. It is essential to invest rationally based on individual financial circumstances and risk tolerance, paying close attention to position sizing and risk management.
Data source: Shanghai and Shenzhen Stock Exchanges, among others. ETF fee information: When subscribing for or redeeming fund units, subscription/redemption agencies may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges and registration institutions. Feeder fund fee information: For the Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A), the front-end subscription fee is 1% for amounts below 1 million yuan, 0.6% for amounts between 1 million yuan (inclusive) and 2 million yuan, and a flat fee of 1,000 yuan per transaction for amounts of 2 million yuan 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 Huabao 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提示: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. The base date for this index is December 30, 2016, and it was published on January 11, 2021. The index constituents are adjusted according to its compilation rules. The index constituents mentioned are for illustrative purposes only; descriptions of individual stocks are not investment advice of any form and do not represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses this fund's risk等级 as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Any information appearing in this content is for reference only, and investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising 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.
A golden cross signal has formed in MACD indicators, suggesting positive momentum for these stocks.
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