On November 3, Hong Kong stocks opened higher in the morning session, with internet leaders gaining strength. Tencent Holdings (00700), Meituan-W (03690) and Xiaomi Group-W rose more than 2%, while Alibaba-W (09988) gained more than 1%, and Baidu Group-W followed the upward trend. The underlying index of Hong Kong Internet ETF Huabao (513770) was up 1.6% at the time of writing.
It is worth noting that Chinese assets surged overnight, with the Nasdaq Golden Dragon China Index closing up 2.25%, as Bilibili, Tencent Music and Alibaba (BABA) all posted strong gains.
On the news front, internet leaders have密集 released progress on AI applications. Apple recently officially announced a partnership with Alibaba Group, integrating the large model "Tongyi Qianwen" into Apple Intelligence in the Chinese mainland market. In addition, Meituan launched its next-generation large model LongCat-2.5 yesterday, topping multiple metrics on the Agent testing leaderboard.
Analysts pointed out that from the perspective of AI application investment, two parallel investment themes hold relatively high value for the secondary market. The first is the earnings realization theme, including commercialization of AI film and television content, enterprise-level AI services, AI marketing and trading services, with a focus on improvements in revenue, gross margin and cash flow. The other is the technology catalysis and new application theme, including world models, AI interactive games, Personal Agents and physical AI data, with a focus on product changes, business model formation and expectation gaps.
Hong Kong internet stocks represent a valuation depression among technology sectors in major global markets. As of the end of October, the CSI Hong Kong Stock Connect Internet Index had a price-to-earnings ratio (TTM) of only 18.48 times, sitting at the historical bottom of the 2.32% percentile since the index was launched, far below the valuations of US and A-share technology represented by the Nasdaq Index (30.34 times) and the ChiNext Index (28.46 times).
The current level has already fairly fully reflected pessimistic market expectations, and further downside space may be limited. As the AI industry continues to deepen, the transmission of market trends is expected to gradually extend from the hardware theme to the midstream and downstream segments. Hong Kong AI focuses on cloud vendor leaders, large models and application segments. Internet leaders possess a full-chain industrial layout spanning from large model training and cloud service support to various intelligent agent applications. Their massive user scenarios and data resources determine that this sector will become the core carrier for future AI commercialization.
Hong Kong Internet ETF Huabao (513770) passively tracks the CSI Hong Kong Stock Connect Internet Index, with heavy positions in internet leaders. Its top two holdings, Tencent Holdings and Alibaba-W, together account for more than 30% weight, while the top ten constituent stocks collectively account for over 80%, demonstrating significant leader advantage. It supports intraday T+0 trading with good liquidity. Off-exchange investors may consider the feeder funds (Class A 017125, Class C 017126).
Reminder: Recent market volatility may be relatively large, and short-term gains or losses do not predict future performance. Investors are advised to invest rationally based on their own financial conditions and risk tolerance, and to pay close attention to position and risk management. Data sources: Shanghai and Shenzhen Stock Exchanges, Wind, etc.
ETF fee-related notes: When investors subscribe or redeem fund shares, the subscription and redemption agency may charge a commission of no more than 0.5%, which includes relevant fees charged by stock exchanges and registration institutions.
Feeder fund fee-related notes: The Huabao CSI Hong Kong Stock Connect Internet ETF Initiating Feeder Fund (Class A) has a subscription fee (front-end) of 1,000 yuan per transaction when the subscription amount is above 2 million yuan, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1% for below 1 million yuan; the redemption fee is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more; no sales service fee is charged. The Huabao CSI Hong Kong Stock Connect Internet ETF Initiating Feeder Fund (Class C) does not charge a subscription fee, has a redemption fee of 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more; the sales service fee is 0.3%.
Risk disclosure: 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 CSI Hong Kong Stock Connect Internet Index's returns over the past five complete years were: 2025, 27.02%; 2024, 23.04%; 2023, -24.74%; 2022, -23.01%; 2021, -36.61%. The volatility over the past five complete years was: 2025, 33.60%; 2024, 43.49%; 2023, 32.09%; 2022, 49.01%; 2021, 38.72%. The index constituent composition is adjusted in a timely manner according to the index compilation rules, and its back-tested historical performance does not predict future index performance.
The index constituent stocks mentioned in this article are for demonstration purposes only. Individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings information or trading movements of any fund under the manager. The risk rating of this fund as assessed by the fund manager is R4-medium-high risk, suitable for aggressive investors (C4) and above. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for their own independent investment decisions. In addition, any views, analyses and forecasts in this article do not constitute investment advice in any form to readers, nor do they assume any direct or indirect liability for losses caused by the use of the content herein. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Past performance of a fund does not represent its future performance. Fund investment involves risks, and caution is required in fund investment.
MACD golden cross signals have formed, and these stocks are performing well.
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