Hong Kong stocks opened higher on August 3, with internet leaders showing strong upward momentum. As of press time, Alibaba-W surged over 6%, Tencent Holdings rose more than 2%, and Bilibili-W and Kuaishou-W followed suit. The Hong Kong Internet ETF (513770), which heavily weights internet giants, traded 1.84% higher intraday, extending its recovery trend since July.
On the news front, AI applications received multiple positive catalysts. The quarterly reports from Microsoft and Amazon confirmed strong profitability in cloud businesses and robust AI demand, signaling that the AI industry's competitive logic is shifting from the early "arms race" phase to a formal "commercialization validation" stage. Data shows Amazon's total revenue reached $181.5 billion, with AWS (cloud business) hitting $37.6 billion, marking its fastest growth rate in 15 quarters. Microsoft reported $82.9 billion in revenue, with its AI business annualized revenue run rate (ARR) exceeding $37 billion, up 123% year-over-year.
Additionally, ByteDance's Seedance 2.5 went live, and the official API of DeepSeek-V4-Flash was launched on the National Supercomputing platform. According to the latest weekly AI model call volume ranking from OpenRouter, a global multi-model aggregation platform, all top five products were developed by Chinese companies. Topping the list was Xiaomi's MiMo-V2.5, with a weekly call volume of 10.5 trillion tokens, up 12% month-over-month. The second and fifth positions were both held by DeepSeek.
CITIC Securities noted that the strength in Hong Kong internet stocks since July is driven by two major rebalancing themes. Structurally, overcrowded hardware positions are being rotated from hardware to cloud and applications as hyperscaler model commercialization expectations improve. In terms of capital flows, foreign investors remain underweight on China and internet stocks, leaving the sector's funding environment at a low point, while southbound capital has been flowing in recently. As China's AI narrative becomes clearer, the firm is optimistic about the recovery and convergence rally in Hong Kong internet stocks, focusing on the value revaluation of internet leaders amid AI transformation.
The Hong Kong Internet ETF (513770) and its feeder funds (Class A: 017125; Class C: 017126) passively track the CSI HK Connect Internet Index. Its top ten heavyweight stocks include tech giants like Alibaba-W and Tencent Holdings, along with various AI application companies, offering significant leadership advantages. The ETF supports intraday T+0 trading and boasts strong liquidity. For investors bullish on Hong Kong tech but seeking lower volatility, the Hong Kong Large Cap 30 ETF (520560), the first of its kind in the market, features a "tech + dividend" barbell strategy. Its heavy holdings include high-elasticity tech stocks like Alibaba as well as stable high-dividend stocks such as banks and insurance companies, making it an ideal long-term allocation tool for Hong Kong markets.
Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should make rational investment decisions based on their own capital situations and risk tolerance, paying close attention to position sizing and risk management. Data sources: Shanghai and Shenzhen stock exchanges, among others.
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