On May 29, following a dip to near 20-month lows the previous day, the Hong Kong internet sector showed signs of recovery during the session. The price of Huabao's Hong Kong Internet ETF (513770), a core tool for Hong Kong-listed AI investments, rose over 1% at one point, currently up 0.81%. Most leading weighted stocks advanced, with KUAISHOU-W surging over 5% in the afternoon before settling at a gain exceeding 3%. TENCENT and Meituan-W rose over 1%, while Alibaba-W followed with gains. Xiaomi Group-W fell 2%.
On the news front, Kuaishou released its Q1 2026 financial report on May 27. The report showed the company's total revenue reached 33.7 billion yuan, a year-on-year increase of 3.4%, with adjusted net profit at 3.4 billion yuan. Notably, its AI business, Kling AI, delivered outstanding performance, generating over 650 million yuan in revenue, a year-on-year surge exceeding 300%, becoming a significant growth driver for the company.
Furthermore, Tencent's Hunyuan officially launched Hy-Memory. This is described as a memory plugin specifically designed for long-term collaborative agents like Openclaw, effectively becoming an agent's "second brain." The Q1 report indicated significant breakthroughs in Tencent's AI products, with its Hy3 preview large language model ranking first in call volume on the OpenRouter platform, and WorkBuddy topping the domestic AI agent DAU (Daily Active Users) chart.
Alibaba also announced in its earnings report that its AI business has officially entered a "commercial return cycle." Alibaba Cloud's external commercial revenue surged 40% year-on-year in Q1, the fastest growth in nine quarters, with AI-related revenue accounting for 30% of that total, marking 11 consecutive quarters of triple-digit growth.
It is worth noting that since October 3, 2025, the Hong Kong internet sector has been undergoing a correction for nearly eight months. The Hang Seng Stock Connect Internet Index has cumulatively declined over 40% during this period. Its current valuation has retreated to the bottom 2.14 percentile of the past decade, indicating a relatively high margin of safety and cost-effectiveness.
CMSC pointed out that the AI industry trend is clear. Hong Kong-listed internet platforms possess advantages in user access, data accumulation, cloud services, payment ecosystems, and enterprise customer bases. If AI can subsequently generate more definitive revenue contributions in scenarios such as advertising, e-commerce, gaming, office software, cloud services, and enterprise services, the Hong Kong AI investment theme is expected to gradually shift from infrastructure mapping to profit realization in the application layer.
Focus is on the value re-rating of Hong Kong internet leaders amid the AI transformation. Huabao's 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 top ten holdings aggregate tech giants like Alibaba-W and TENCENT, along with AI application companies across various sectors, highlighting significant leading advantages. The ETF offers intraday T+0 trading with good liquidity.
For those bullish on Hong Kong tech but seeking to reduce volatility, consider the market's first Hong Kong Large Cap 30 ETF Huabao (520560). It employs a "Tech + Dividend" barbell strategy, with holdings including high-volatility tech stocks like Alibaba alongside stable, high-dividend stocks from sectors like banking and insurance, making it an ideal long-term core holding for Hong Kong market allocation.
A reminder: Recent market volatility may be significant, and short-term price movements do not predict future performance. Investors must make rational investment decisions based on their own capital situation and risk tolerance, paying high attention to position sizing and risk management.
Data source: Shanghai and Shenzhen Stock Exchanges, etc.
ETF fee-related notes: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges, registration institutions, etc. Feeder fund fee-related notes: For Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A), the subscription fee (front-end load) is 1000 yuan per transaction for subscription amounts over 2 million yuan, 0.6% for amounts between 1 million yuan (inclusive) and 2 million yuan, and 1% for amounts below 1 million yuan. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days (inclusive) or more; no sales service fee is charged. For Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class C), no subscription fee is charged. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days (inclusive) or more; the sales service fee is 0.3%.
Risk Disclosure: 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 launched on January 11, 2021. The index constituents are adjusted according to its compilation rules. The index constituents mentioned herein are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings information or trading动向 of any fund managed by the manager. The fund manager assesses this fund's risk等级 as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks,评论, forecasts, charts, indicators, theories, any form of表述, etc.) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any form to readers, 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. A fund's past performance does not represent its future performance. Fund investment involves risk, and caution is required in fund investment.
Comments