On November 24, Hong Kong stocks opened higher in the morning session, with tech leaders showing signs of recovery. As of the latest update, Kuaishou-W surged over 2%, while Tencent Holdings, Xiaomi Group-W, and Alibaba-W each gained more than 1%, with Meituan-W also rising. The HK Internet ETF (513770), heavily weighted in internet leaders, traded in positive territory, with its price up 0.37% intraday. The ETF continued to exhibit a wide premium, with a real-time premium rate exceeding 0.3%, indicating strong buying interest.
Data from the Shanghai Stock Exchange shows that the HK Internet ETF (513770) attracted net inflows for five consecutive days last week, totaling 71.14 million yuan. Over the past 20 days, cumulative inflows exceeded 1 billion yuan.
Following recent corrections, the valuation appeal of Hong Kong's internet sector has become more pronounced. As of November 21, the price-to-earnings ratio of the CSI HK Connect Internet Index, tracked by the HK Internet ETF (513770), stood at just 21.93 times, near a historically low level at the 8.3% percentile over the past decade.
Analysts note that Hong Kong stocks serve as a unique bridge connecting Chinese innovation with global capital, hosting a cluster of platform-based tech giants and hard-tech leaders not available in the A-share market. These companies are deeply embedded in global supply chains across key areas such as AI models, cloud computing, smart hardware, and semiconductors, transitioning from investment phases to value realization. With the Fed's rate-cut cycle beginning, sustained southbound capital inflows, and targeted domestic policy support for the tech sector, Hong Kong's tech stocks are demonstrating both valuation appeal and earnings resilience.
The HK Internet ETF (513770) and its feeder funds (Class A: 017125; Class C: 017126) passively track the CSI HK Connect Internet Index, which is heavily concentrated in 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-model, and AI application firms across sectors, account for over 73% of the index, highlighting their dominant positions.
The HK Internet ETF (513770) has a latest AUM exceeding 10.9 billion yuan, with an average daily turnover of over 600 million yuan year-to-date. It supports intraday T+0 trading without QDII quota restrictions, offering strong liquidity.
For investors bullish on Hong Kong tech but seeking lower volatility, the HK Large-Cap 30 ETF (520560)—the first of its kind—adopts a "tech + dividend" barbell strategy. Its portfolio includes high-growth tech stocks like Alibaba and Tencent alongside stable high-dividend names such as China Construction Bank and Ping An Insurance, making it an ideal long-term holding tool for Hong Kong equities.
Caution: Recent market volatility may remain elevated, and short-term price movements do not indicate future performance. Investors should make rational decisions based on their financial situation and risk tolerance, paying close attention to position sizing and risk management.
Data source: SSE, SZSE, etc. The CSI HK Connect Internet Index's annual returns for the past five full 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 predict future results.
Risk disclosure: The HK Internet ETF passively tracks the CSI HK Connect Internet Index (base date: Dec 30, 2016; launch date: Jan 11, 2021). Constituents are adjusted per index rules. Holdings mentioned are for illustrative purposes only and do not constitute investment advice or reflect fund positions. 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 solely responsible for their decisions. No liability is accepted for direct or indirect losses arising from the use of this content. Past performance of other funds managed by the manager does not guarantee future results. Fund investments carry risks—invest with caution.
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