On March 12, Hong Kong stocks opened lower but then rose, with most leading internet companies trading in positive territory. At the time of writing, Xiaomi Group-W had gained over 1%, while Tencent Holdings and Alibaba-W also saw increases. The HK Internet ETF (513770), a core tool for accessing Hong Kong-listed AI assets, rose 0.66% in intraday trading.
The viral success of OpenClaw has redirected market focus back to the AI theme, leading to a recent recovery in Hong Kong's technology sector, particularly among leading internet companies. The sector's core value is supported by both its low valuation advantage and the dividends from industrial transformation.
From a valuation perspective, as of March 9, the Hang Seng Stock Connect Internet Index has declined more than 28% since October 2025. The sector's price-to-earnings ratio (PE TTM) stands at just 21.41 times, near a historical low at the 6.92 percentile over the past five years. This is significantly lower than the valuation levels of US tech represented by the Nasdaq 100 and A-share tech represented by the ChiNext Index.
Regarding industrial transformation, the current AI wave is fundamentally reshaping the growth trajectory of Hong Kong's tech giants. Industry upgrades driven by AI and cloud businesses are becoming the core theme for the sector's value recovery. In recent developments, Tencent Cloud's pricing strategy for its Hunyuan series of large models has undergone significant adjustments, with prices for some models increasing by up to 463%. Concurrently, several other models, including Kimi, have ended their free public testing phases and officially entered commercial, fee-based stages. This marks the end of the "burning money for customers" era in China's large model market and the arrival of deeper commercialization efforts.
Seizing the opportunities in 2026 as the first year of large-scale AI commercialization requires attention to core AI tools in the Hong Kong market. The HK Internet ETF (513770) and its feeder funds (Class A: 017125; Class C: 017126) passively track the CSI Hong Kong Stock Connect Internet Index. Its top ten holdings aggregate tech giants like Alibaba-W, Tencent Holdings, Xiaomi Group-W, Kuaishou-W, and Bilibili-W, along with AI application companies across various sectors, offering significant leading advantages. The ETF offers intraday T+0 trading with good liquidity.
For investors bullish on Hong Kong tech but seeking to reduce volatility, consider the market's first Hong Kong Large Cap 30 ETF (520560). It employs a "Tech + Dividends" barbell strategy, holding both high-growth tech stocks like Alibaba and Tencent Holdings, as well as stable, high-dividend stocks like China Construction Bank and Ping An of China, making it an ideal core holding for long-term Hong Kong market allocation.
Reminder: Recent market volatility may be significant. Short-term gains or losses are not indicative of future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.
Data Source: Shanghai and Shenzhen Stock Exchanges, etc. The annual performance of the CSI Hong Kong Stock Connect Internet Index for the last five full years is as follows: 2021: -36.61%; 2022: -23.01%; 2023: -24.74%; 2024: 23.04%; 2025: 27.02%. The index's constituent stocks are adjusted periodically according to its compilation methodology. Past performance of the index does not predict its future results.
ETF Fee Explanation: When subscribing for or redeeming fund units, the subscription/redemption agent may charge a commission of up to 0.5%, which includes relevant fees charged by the stock exchange and registration机构. Feeder Fund Fee Explanation: For the Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A), the front-end subscription fee is 1,000 RMB per transaction for subscription amounts over 2 million RMB; 0.6% for amounts between 1 million RMB (inclusive) and 2 million RMB; and 1% for amounts below 1 million RMB. The redemption fee is 1.5% for holding periods under 7 days, and 0% for holding periods 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 holding periods under 7 days, and 0% for holding periods of 7 days or more. The sales service fee is 0.3%.
Risk Disclosure: The HK Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. The index's base date is December 30, 2016, and it was launched on January 11, 2021. Its constituent stocks are adjusted periodically according to the index's compilation rules. The mention of index constituents herein is for illustrative purposes only; descriptions of individual stocks do not constitute investment advice in any form nor represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses this fund's risk level as R4 - Medium-High Risk, suitable for Aggressive (C4) and higher investor types. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or predictions 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 this fund's performance. Past fund performance is not indicative of future results. Fund investment carries risks; invest cautiously.
MACD golden cross signals have formed, indicating positive momentum for these stocks.
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