Shares of Alibaba-W surged over 10% in afternoon trading, following a positive outlook from its fiscal 2027 first-quarter earnings preview. The report indicated robust profitability and a return to growth for its overall e-commerce business, encompassing China e-commerce and AIDC. Notably, the loss reduction for its flash sales platform, Taobao Deals, is progressing faster than market expectations, with the unit economics gap narrowing against competitors. Market share has remained stable throughout the subsidy reduction process.
The focus for Taobao Deals has shifted towards higher average order value categories like food delivery and non-food orders, suggesting further potential for unit economics improvement in the period ahead.
Additionally, Kuaishou-W and Xiaomi Group-W saw gains exceeding 7%, while Tencent Holdings rose over 3%. Bilibili-W and Meituan-W also followed the upward trend.
The Hong Kong Internet ETF Huabao (513770), which holds significant positions in leading internet companies, experienced a sharp, high-volume spike in its on-exchange price during the afternoon, climbing over 5%. This move was accompanied by a substantial premium, with the real-time premium rate reaching 0.72%, potentially indicating capital inflows positioning for a potential market shift.
Recent market activity in Hong Kong stocks has displayed a clear "rotation from high to low" characteristic. Capital appears to be shifting from the previously high-flying AI hardware sector towards lower-valued technology and internet stocks. Analysis suggests this trend reflects that AI-related trading has become crowded, raising sensitivity to negative news and prompting funds to flow into traditional internet leaders currently in valuation troughs.
The convergence of three factors—valuation bottom, improving liquidity, and a narrative shift away from AI—may create a window for a phased valuation recovery in Hong Kong's tech and internet sector.
Attention is turning to the potential value re-rating of Hong Kong's leading internet companies amidst the AI transformation. The Hong Kong Internet ETF Huabao (513770) and its feeder funds passively track the CSI Hong Kong Stock Connect Internet Index. Its top ten holdings aggregate tech giants like Alibaba-W and Tencent Holdings, along with AI application firms across various sectors, highlighting significant leading advantages. The ETF offers intraday T+0 trading with good liquidity.
For investors bullish on Hong Kong tech but seeking to mitigate volatility, the Hong Kong Large Cap 30 ETF Huabao (520560) presents an alternative. As the first of its kind in the market, it employs a "tech + dividend" barbell strategy. Its portfolio includes high-beta tech stocks like Alibaba alongside stable, high-dividend payers from the banking and insurance sectors, making it an ideal core holding for long-term Hong Kong equity allocation.
Investors are reminded that recent market volatility may be significant, and short-term price movements are not indicative of future performance. It is crucial to invest rationally based on individual financial circumstances and risk tolerance, with high attention paid to position sizing and risk management.
Data is sourced from exchanges including the Shanghai and Shenzhen Stock Exchanges.
ETF fee information: When subscribing for or redeeming fund units, the subscription/redemption agent may charge a commission not exceeding 0.5%, which includes relevant 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 subscription fee (front-end load) is 1% for amounts below 1 million yuan, 0.6% for amounts between 1 million (inclusive) and 2 million yuan, and a flat 1,000 yuan per transaction for amounts above 2 million yuan. 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 Disclosure: The Hong Kong Internet ETF Huabao and its feeder funds passively track 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 constituents are adjusted according to its compilation rules. The constituent stocks mentioned are for illustrative purposes only; individual stock descriptions do not constitute investment advice in any form and do not represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses the risk rating of this fund as R4 (Medium-High Risk), suitable for aggressive (C4) and above investors. Any information appearing in this article is for reference only. Investors are responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice to readers, and no liability is assumed 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 results. Fund investment involves risks; caution is advised when investing in funds.
A MACD golden cross signal has formed, indicating positive momentum for certain stocks.
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