On August 3rd, major Hong Kong stock indices opened higher, with the Hang Seng China (Hong Kong Listed) 30 index quickly gaining over 1% in early trading before experiencing minor fluctuations. Among heavyweight stocks, Alibaba (BABA-W) surged nearly 6% to lead the gains, followed by Yum China, Kuaishou-W, and Tencent Holdings.
According to Bloomberg, citing sources familiar with the matter, Chinese AI company Moonshot AI has entered into a computing power cooperation agreement with Alibaba. The deal allows Moonshot AI to utilize a cluster of approximately 20,000 Nvidia chips from Alibaba. The sources indicated that this hardware accounts for a significant portion of the total computing power used by Moonshot AI's Kimi model.
In the ETF market, the Hong Kong Large Cap 30 ETF (520560), the only ETF tracking the Hang Seng China (Hong Kong Listed) 30 index, rose 0.6% as of the time of writing, with frequent premium trading observed during the volatile session. From a technical chart perspective, the daily K-line has climbed above all major moving averages, including the 10-day and 120-day lines, forming an initial bullish arrangement. The price has also moved away from its recent lows, indicating a short-term accumulation of buying interest.
Investment themes for the short term
Analysts at Zhongtai Securities suggest that Hong Kong stocks may continue to show a pattern of volatile recovery in the near term. They recommend focusing on two key themes: first, the structural opportunities within the technology sector, where the commercialization of AI applications is accelerating, potentially leading to improved earnings expectations; second, high-dividend defensive stocks, such as banks and utilities, which offer defensive value amid rising geopolitical risks.
Hong Kong Stock Connect 'Tech and Dividend' Dual-Core Allocation Tool
The Hong Kong Large Cap 30 ETF (520560) and its linked funds (Link A: 501301, Link C: 006355) passively track the Hang Seng China (Hong Kong Listed) 30 index. This index inherently employs a "tech and dividend" barbell strategy, balancing both offensive growth and defensive stability. With a track record of steady performance, it is suitable as a core holding for long-term allocation in Hong Kong stocks.
Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors are advised to make rational decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.
Risk Disclosure: The Hong Kong Large Cap 30 ETF (520560) passively tracks the Hang Seng China (Hong Kong Listed) 30 Index. The index's base date is January 3, 2000, and it was launched on January 20, 2003. The composition of the index's constituent stocks is adjusted in accordance with the index's compilation rules. The constituent stocks mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice of any kind and do not represent the holdings or trading activities of any fund managed by the fund manager. The fund manager has assessed the risk level of this fund as R4 (Medium-High Risk), making it suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors must be responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers of any kind, and the author is not responsible 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 does not represent future results. Fund investment involves risk; investors should invest with caution.
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