External positive news emerged unexpectedly, with the Nasdaq surging over 2% and hitting a record high for the second consecutive trading day. Chinese assets collectively surged, with the Nasdaq Golden Dragon China Index rising more than 3%, and Alibaba climbing over 6%. On the morning of May 7th, Hong Kong stocks opened significantly higher, with leading internet companies broadly advancing. At the time of writing, KUAISHOU-W was up over 6%, BABA-W gained more than 3%, TENCENT and MEITUAN-W both rose over 2%, and Xiaomi Group-W followed with gains.
The core AI tool for Hong Kong stocks – the Huabao Hong Kong Internet ETF (513770) – saw its on-market price rise 1.9%, breaking above its 10-day and 20-day moving averages.
On the news front, former US President Donald Trump stated that the US and Iran had "very productive" talks over the past 24 hours and that it is "very possible" an agreement will ultimately be reached. Market sentiment received a boost. Bank of Communications International pointed out that entering May, the window for Hong Kong stock valuation recovery is expected to reopen, with technology and internet sectors presenting the highest risk-reward opportunity for the month. Valuations for Hong Kong tech stocks remain at low-to-mid historical levels, major platforms continue to support share prices through buybacks, and if high-level US-China meetings yield positive outcomes, the sector has considerable room for mean reversion. Key focuses include main catalysts like the commercialization of AI applications. Positioning for the inaugural year of AI commercialization in 2026 involves focusing on core AI tools in the Hong Kong market. The Hong Kong Internet ETF (513770) and its feeder funds passively track the CSI Hong Kong Stock Connect Internet Index. Its top ten holdings aggregate tech giants like BABA-W and TENCENT, alongside AI application companies across various sectors, demonstrating significant leading advantages. It offers intraday T+0 trading with good liquidity.
Interested in Hong Kong tech but hoping to reduce volatility? Consider the market's first Hong Kong Large-Cap 30 ETF (520560), which employs a "Tech + Dividend" barbell strategy. Its major holdings include high-growth tech stocks like Alibaba, while also encompassing stable, high-dividend stocks from sectors like banking and insurance, making it an ideal long-term core holding for Hong Kong market exposure. Reminder: Recent market volatility may be significant. Short-term gains or losses do not indicate 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. Institutional viewpoint source: Bank of Communications International report dated May 4th, 2026. 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 details: The Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (A-share) charges a subscription fee (front-end load) of a flat 1,000 RMB for subscriptions over 2 million RMB, 0.6% for subscriptions between 1 million RMB (inclusive) and 2 million RMB, and 1% for subscriptions below 1 million RMB. The redemption fee is 1.5% for holdings under 7 days, and 0% for holdings of 7 days or more; no sales service fee is charged. The Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (C-share) charges no subscription fee. The redemption fee is 1.5% for holdings under 7 days, and 0% for holdings of 7 days or more; a sales service fee of 0.3% is charged. Risk提示: The Hong Kong Internet ETF passively tracks 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 index constituents are adjusted according to its compilation rules. The index constituents mentioned are for illustrative purposes only; descriptions of individual stocks are not investment advice of 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 level as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Any information appearing in this content is for reference only. 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 will be 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 the performance of this fund. Past performance of the fund is not indicative of its future results. Fund investment carries risks, and caution is advised when investing in funds.
MACD golden cross signals have formed, and these stocks are performing well!
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