Tencent recently posted five consecutive days of gains, rising nearly 14%, while the Hang Seng Tech Index halted its decline and rebounded.
A netizen asked well-known investor Duan Yongping whether he still holds Tencent Holdings Ltd (00700), and Duan replied: "Still holding."
In addition, several fund managers are bullish on Hong Kong internet stocks, with AI application implementation and profit improvement expected to become the core catalysts for the next phase.
Since late October, the Hang Seng Tech Index has staged a rebound, with Tencent Holdings Ltd (00700) posting a rare five-day winning streak.
A netizen asked well-known investor Duan Yongping whether he still holds Tencent Holdings Ltd (00700), and Duan replied: "Still holding."
Judging from the performance of the Hong Kong tech index, after a year of volatile adjustments, whether the recent rebound can be sustained has drawn significant investor attention.
Duan Yongping's Latest Moves
Recently, a netizen asked Duan Yongping whether he still holds Tencent Holdings Ltd (00700), and Duan replied that he is still holding.
However, Duan stated that not using leverage and not borrowing money to trade stocks is very important, and buying good companies is also important.
On November 2, when asked which is more attractive between Tencent Holdings Ltd (00700) and Moutai, Duan said: "Both are attractive. Moutai's business is more stable, while Tencent Holdings Ltd (00700) has more growth potential but also faces greater uncertainty."
A review reveals that Duan Yongping has long paid attention to Tencent Holdings Ltd (00700).
In April this year, a netizen analyzed Duan Yongping's investment moves and mentioned that he had reduced his position in Tencent Holdings Ltd (00700). Duan replied: "When did I ever say I reduced my position in Tencent Holdings Ltd (00700)? My put sales on Tencent Holdings Ltd (00700) were even restricted. Tencent Holdings Ltd (00700) is a very good company, and one should be reluctant to sell."
However, in August, Duan revealed: "A 1% stake in Tencent Holdings Ltd (00700) is currently worth just over 40 billion. I have indeed never had that much." At that time, Tencent Holdings Ltd (00700) had a market capitalization of around HK$4 trillion.
Still Bullish on Pop Mart
Besides Tencent Holdings Ltd (00700), Duan Yongping also recently discussed Pop Mart.
Since entering the fourth quarter, Pop Mart has been trending lower with volatility, with its share price falling to a low of less than HK$124 per share.
A netizen asked Duan Yongping: In terms of opportunity cost, would you choose to buy more Pop Mart now with the Apple shares you've called away? Duan said, "I should still buy some more, but not more than 10% of the company, otherwise the company would have objections. With NetEase, I also only reached about 10% at most. Now I'm being made to look like a Pop Mart agent. I don't want to answer this kind of question anymore. Anyway, I've said everything I need to say about my views. You'll know in a few years whether you missed out."
What Are the Opportunities in Hong Kong Stocks?
Looking at the stock price performance of Tencent Holdings Ltd (00700), after sustained volatile adjustments, the stock has recently rebounded.
From October 30 to November 5, Tencent Holdings Ltd (00700) posted five consecutive days of gains, with an increase of nearly 14%.
However, over a longer time frame, compared with the stock price high in October 2025, Tencent Holdings Ltd (00700)'s latest stock price is still down about 37%.
As the largest company by market capitalization in the Hong Kong stock market, Tencent Holdings Ltd (00700)'s stock price performance basically represents the overall trend of the Hang Seng Tech Index.
From the perspective of public funds' overall allocation to Hong Kong stocks, according to estimates by Guosen Securities, actively managed equity funds' Hong Kong stock positions rebounded somewhat in the third quarter, though they remain underweight Hong Kong stocks relative to the benchmark.
In terms of allocation direction, actively managed equity funds concentrated on adding positions in Hong Kong pharmaceutical and biotech and internet sectors in the third quarter, while reducing positions in Hong Kong AI hardware significantly.
Wang Ningning, a fund manager at Hairongtong Fund, said he is bullish on the Hong Kong internet sector, mainly for the following reasons: First, global capital is rebalancing from "AI hardware" to "AI applications and platforms," with Chinese internet stocks becoming one of the receiving directions; second, when the U.S. AI narrative is disturbed by regulation, the relative discount of Chinese AI assets becomes attractive; third, the official version of Tencent Holdings Ltd (00700)'s Hunyuan Hy4 has completed its visual capabilities, providing a specific catalyst on the application side.
In the view of Xu Tingquan, a fund manager at HSBC Jintrust Fund, the internet sector is expected to see profit improvement. Part of the downward revision in internet sector profits came from food delivery subsidies. Since the last quarterly earnings report, the impact of food delivery subsidies has been further improved. This can also be verified from high-frequency data. Going forward, it remains necessary to observe whether major companies significantly increase AI investment growth and the pace of internet companies' refinancing, as such events will still disturb market sentiment.
Huang Run, fund manager of Penghua Shanghai-Hong Kong-Shenzhen Internet Equity Fund, believes that in the first three quarters, the Hang Seng Tech Index and Chinese internet assets continued to perform weakly. On one hand, competition intensified in sub-sectors such as food delivery and online music, with subsidies raising profit pressure; on the other hand, the progress of large model implementation by internet giants fell short of expectations, and the sector suffered a double blow to both profits and valuations. Currently, the overall valuation of Chinese internet assets is at a bottom level, and some high-quality assets will also see a reversal in fundamentals, so related asset allocation will be increased going forward.
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