On December 4, overnight gains in U.S. stocks and renewed expectations of interest rate cuts led to a higher opening for Hong Kong stocks. After a brief pullback, the market strengthened, with the Hang Seng Tech Index rising 0.7%. AI-related stocks outperformed, with most leading tech and internet companies gaining. Xiaomi Group-W surged nearly 3%, Bilibili-W rose over 2%, Meituan-W climbed more than 1%, while Alibaba-W and Tencent Holdings saw slight declines.
The HK Internet ETF (513770), a core tool for Hong Kong AI investments, saw its price rise over 1% intraday, currently up 0.74%, with persistent wide premiums indicating strong buying interest.
In corporate news, Lu Weibing, Xiaomi Group's Partner, President, and Head of Smartphone Division, responded to inquiries about Luo Fuli joining the company and Xiaomi's AI strategy on social media. He stated that Xiaomi had initiated intensive AI investments in recent quarters, with progress in large models and applications far exceeding internal expectations, though specific details remain undisclosed.
Recent trends suggest the Hong Kong internet sector is bottoming out. Analysts note that the market is nearing a state where "negative factors have been exhausted." Core risks such as U.S.-China trade tensions, overseas liquidity fluctuations, and the impact of the "food delivery war" on internet sector profitability have largely been priced in, limiting further downside.
As a unique bridge connecting Chinese innovation and global capital, Hong Kong hosts a cluster of platform-based tech giants and hard-tech leaders scarce in the A-share market. These companies are deeply embedded in global supply chains for AI models, cloud computing, smart hardware, and semiconductors, transitioning from investment phases to value realization. The current market may present an entry point for long-term investors.
The HK Internet ETF (513770) and its linked funds (Class A 017125; Class C 017126) track the CSI Hong Kong Stock Connect Internet Index, which is heavily weighted toward internet leaders. Alibaba-W, Tencent Holdings, and Xiaomi Group-W are its top three holdings, with weightings of 18.89%, 17.01%, and 10.05%, respectively. The top 10 holdings, comprising AI cloud computing, large models, and AI application firms, account for over 73% of the index, highlighting their dominance.
With assets exceeding RMB 10 billion and average daily turnover surpassing RMB 600 million, the HK Internet ETF (513770) supports intraday T+0 trading without QDII quota restrictions, offering strong liquidity.
For investors seeking exposure to Hong Kong tech with lower volatility, the Hong Kong Large-Cap 30 ETF (520560) provides a balanced "tech + dividend" barbell strategy. Its portfolio includes high-growth tech stocks like Alibaba and Tencent alongside stable high-dividend plays such as China Construction Bank and Ping An Insurance, making it an ideal long-term holding.
Caution: Recent market volatility may remain elevated, and short-term performance does not indicate future trends. Investors should assess their financial situation and risk tolerance carefully, emphasizing position and risk management.
Data source: SSE, SZSE, etc. The CSI Hong Kong Stock Connect Internet Index's annual returns for the past five years are: 2020, 109.31%; 2021, -36.61%; 2022, -23.01%; 2023, -24.74%; 2024, 23.04%. Index constituents are adjusted per its rules, and past performance does not guarantee future results.
Risk Disclosure: The HK Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index (base date: December 30, 2016; launch date: January 11, 2021). Constituents are adjusted per index rules. Stock mentions are for illustrative purposes only and do not constitute investment advice or reflect fund holdings. The fund is rated R4 (medium-high risk), suitable for aggressive (C4) or higher investors. All information herein is for reference only, and investors are responsible for their decisions. Views expressed do not constitute advice, and no liability is accepted for losses arising from its use. Past fund performance does not guarantee future results. Invest with caution.
Comments