Hong Kong stocks opened higher on Monday morning, with leading internet companies showing broad strength. As of writing, Meituan and Bilibili surged over 2%, while Xiaomi Group and Tencent Holdings rose more than 1%, with Alibaba also trading in positive territory.
In the AI application space, momentum was particularly strong. Kingdee International and East Buy jumped over 5%, NetEase gained more than 4%, and Meitu Inc, XD Inc, and Cloud Village (NetEase Cloud Music) were among the top performers.
The Hong Kong Internet ETF (Hua Bao, code 513770), which is heavily weighted toward internet leaders, rose sharply in early trading. Its intraday price is currently up more than 2%, reclaiming the 10-day moving average.
Where the AI Agent competition is heading
The AI Agent sector is undergoing rapid segmentation. The competition for general-purpose large language models is increasingly shifting to a battle for closed-loop capabilities in specific vertical scenarios. Industry giants in office software, local services, and e-commerce are each developing proprietary agents based on their own business foundations.
Meituan recently announced a comprehensive upgrade of its local life AI-native assistant, "Xiao Tuan." Version 2.0 can not only help users search for information and compare options but also utilize real-time data to assist with completing tasks such as placing orders, booking taxis, and making reservations. This marks a significant shift from the previous "Ask Xiao Tuan" model to the new "Let Xiao Tuan Help" paradigm.
Meanwhile, Alibaba has begun small-scale testing of its new AI Agent product, "Qianwen Office." This tool deeply integrates several of the company's agent products, including QoderWork, Wukong, and MuleRun. It is currently available as a local desktop client, with web and DingTalk-integrated versions to follow.
Tencent has officially launched its WorkBuddy on the HarmonyOS computer app store, making it the first desktop office agent on the HarmonyOS platform. According to data from Analysys, WorkBuddy's monthly PC visits reached 8.85 million in the month of its launch. By June 2026, this figure had surged to 20.97 million, representing a 2.4-fold increase from three months prior.
Major tech players are ending their internal "horse races" and consolidating resources to build flagship products, competing for the next-generation productivity gateway.
Why the valuation case is compelling
Improvements in the industry's fundamentals are creating a "sweet spot" with low valuations. Combined with positive signals from recent iterations of domestic large models, the rollout of agent applications, and forward-looking financial reports from internet giants, the Hong Kong-listed internet sector is experiencing a triple recovery logic.
First, there is a rotation within the tech sector, with capital shifting from AI hardware to undervalued internet assets. Second, the accelerated commercialization of AI cloud, models, and agents is boosting platform monetization expectations. Third, subsidy spending on food delivery and platform investments is becoming more disciplined, alleviating concerns about margin compression.
Looking ahead, the market's focus will be on the sustainability of earnings delivery, AI commercialization, and capital inflows. Investors are watching for the revaluation of leading Hong Kong-listed internet stocks driven by the AI transformation.
The Hong Kong Internet ETF (Hua Bao, code 513770) and its feeder funds (Class A: 017125; Class C: 017126) passively track the CSI Hong Kong Connect Internet Index. The top ten holdings include tech giants like Alibaba and Tencent, along with various AI application companies, giving the fund a significant leadership premium. It supports same-day T+0 trading and offers strong liquidity.
For investors looking to invest in Hong Kong tech while potentially reducing volatility, the market's first product—the Hong Kong Large Cap 30 ETF (Hua Bao, code 520560)—offers a "Technology + Dividends" barbell strategy. Its heavy holdings include high-growth tech stocks like Alibaba as well as stable, high-dividend stocks in banking and insurance, positioning it as an ideal long-term allocation tool for the Hong Kong market.
Reminder: Market volatility may be significant in the near term, and short-term gains do not guarantee future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position and risk management.
Data sources: Shanghai and Shenzhen stock exchanges, etc.
ETF Fee Explanation: When investors subscribe for or redeem fund shares, the subscription/redemption agency may charge a commission of up to 0.5%, which includes fees charged by the stock exchange, registration institution, etc.
Feeder Fund Fee Explanation: For the Hua Bao CSI Hong Kong Connect Internet ETF Feeder Fund (Class A), the subscription fee (front-end load) is RMB 1,000 per transaction for subscription amounts over RMB 2 million, 0.6% for amounts between RMB 1 million (inclusive) and RMB 2 million, and 1% for amounts under RMB 1 million. 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. For the Hua Bao CSI Hong Kong Connect Internet ETF Feeder Fund (Class C), no subscription fee is charged. 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. The sales service fee is 0.3%.
Risk Warning: The Hong Kong Internet ETF (Hua Bao) and its feeder funds passively track the CSI Hong Kong Connect Internet Index. The index base date is 2016.12.30, and it was published on 2021.1.11. The index constituent stocks are adjusted according to the index compilation rules. The index constituents mentioned in the article are for display purposes only and do not constitute investment advice of any kind, nor do they represent the holdings or trading activities of any fund managed by the fund manager. The fund manager assesses the risk level of this fund as R4-Medium to High Risk, suitable for investors with an aggressive (C4) or higher risk profile. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors must be responsible for their own investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any form to the reader, and the author is not liable for any direct or indirect losses arising from the use of the content of this article. The performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Past performance of a fund is not indicative of its future performance. Fund investment carries risks. Investors must be cautious when investing in funds.
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