Hong Kong stocks opened higher during the early session on April 14th, with leading technology companies collectively advancing. Kingsoft surged over 8% following its earnings report. The company's announcement indicated that Beijing Kingsoft Office Software,Inc. is projected to achieve a net profit attributable to shareholders of approximately 2.022 billion to 2.307 billion yuan for the first quarter, representing a sharp increase of 401.89% to 472.81% year-over-year. Kingsoft Cloud rose over 5%, while Bilibili-W gained more than 3%. Alibaba-W, Xiaomi Group-W, and TENCENT each advanced over 1%. The Huabao HK Internet ETF (513770), a core tool for accessing Hong Kong's AI sector, saw its intraday price increase by 1.66%.
As the first-quarter earnings reporting season begins, positive performance outlooks for several leading internet companies are being driven by dual factors: the acceleration of AI commercialization and a reduction in intense internal competition. Alibaba's financial guidance suggests it expects to halve losses in its food delivery business by 2026, with its cloud business growth rate surpassing the 40% mark for the first time. Furthermore, several institutions have released previews for TENCENT's first-quarter results. Guohai Securities forecasts that TENCENT's first-quarter revenue will grow 11% year-over-year to 200.7 billion yuan, with gross profit increasing 15% to 115.5 billion yuan. TENCENT's Hunyuan 3.0 large language model is scheduled for release in mid-April.
Industrial Securities noted that although geopolitical conditions may still experience fluctuations, April could present a window of opportunity for bullish positions in Hong Kong stocks. Factors include a short-term global shift in equity markets from risk-off back to risk-on sentiment; a likely retreat in the US dollar as safe-haven demand and oil prices peak and decline, reversing previously overly pessimistic pricing for geopolitical uncertainty and liquidity tightening; and expectations that the releases of TENCENT's Hunyuan and DeepSeek models, important meetings, and the potential for a Trump visit to China could help reverse the pessimistic outlook currently reflected in Hong Kong stock valuations.
Cao Xuchen, the portfolio manager of the HK Internet ETF (513770), pointed out that the strengthening narrative around AI and the accelerating pace of AI commercialization are expected to lead to a gradual upward revision of the fundamental prospects for Hong Kong's internet sector starting in the second quarter, highlighting the particular value of investing at the current market bottom.
To capitalize on what is being termed the inaugural year of AI commercialization in 2026, investors are focusing on core AI tools within the Hong Kong market. The HK Internet ETF (513770) and its feeder funds passively track the CSI Hong Kong Stock Connect Internet Index. Its top ten holdings aggregate technology giants like Alibaba-W and TENCENT, along with AI application companies across various sectors, offering significant leading advantages. The ETF allows for intraday T+0 trading and possesses good liquidity.
For investors bullish on Hong Kong technology but seeking to reduce volatility, the pioneering Hong Kong Large Cap 30 ETF (520560) is also an option. It employs a "tech + dividends" barbell strategy, with its major holdings including high-growth tech stocks like Alibaba as well as stable, high-dividend-paying bank and insurance stocks, making it an ideal core holding for long-term Hong Kong market allocation.
A reminder: Recent market volatility may be significant, and short-term price movements 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.
ETF fee-related information: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions. Feeder fund fee-related information: The Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A) has a front-end subscription fee structure: a flat fee of 1,000 RMB per subscription for 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. It does not charge a sales service fee. The Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class C) does not charge a subscription fee. The redemption fee is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days or more. It charges a sales service fee of 0.3%.
Risk warning: 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 published on January 11, 2021. The index's constituent stocks are adjusted according to its compilation rules. The index constituents mentioned are for illustrative purposes only; descriptions of individual stocks are not investment recommendations in any form and do not represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses this fund's risk等级 as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Any information appearing in this content is for reference only, and investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses resulting from the use of this content. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Past performance of the fund is not indicative of its future results. Fund investment carries risks, and investing in funds requires caution.
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