On March 24, Hong Kong stocks saw a significant rebound, with the Hang Seng Index and Hang Seng Tech Index both rising over 2%. Internet leaders collectively advanced, with Tencent Holdings and Meituan-W up over 3%, Alibaba-W rising 2.92%, and Xiaomi Group-W gaining nearly 2%. The Hong Kong Internet ETF (513770), a core AI tool for Hong Kong stocks, closed up 2.87% in on-market price.
Yesterday's geopolitical tensions triggered a broad market adjustment, causing the Hong Kong Internet ETF (513770) to plunge 4.35% and hit a near one-year low. The current sentiment-driven sell-off may have been largely exhausted. Concurrently, the price-to-earnings ratio (TTM) of the Hang Seng Stock Connect Internet Index stood at just 21.37 times, at a historical low in the 6.9th percentile over the past five years, further highlighting its undervalued status.
Regarding market drivers, internet leaders represented by Alibaba have frequently reported AI progress, with commercialization accelerating. Financial reports indicate that AI chips and cloud revenue have become new growth engines for Alibaba, with AI-related product revenue achieving triple-digit year-over-year growth for ten consecutive quarters. Its subsidiary T-Head has achieved mass production of GPU chips, with cumulative large-scale deliveries reaching 470,000 units. Recently, intelligent cloud providers like Alibaba have successively raised prices, followed by increases in large model prices from Tencent Cloud, drawing attention to potential profit inflection signals for internet leaders under the AI cycle.
In the latest development, at today's Xuantie RISC-V Ecosystem Conference, Alibaba released the RISC-V CPU Xuantie C950, which set a new global performance record for RISC-V CPUs. The company also announced that its large language model Tongyi Qianwen has joined the Xuantie RISC-V Wujian Alliance, which will further promote Alibaba's "chip-model synergy."
Huatai Securities pointed out that the core competitiveness and moats of high-quality internet companies remain solid. Their vast user bases, rich application scenarios, stable cash flows, and continuous business model updates form the foundation of their long-term value. Looking ahead, sustained breakthroughs in AI technology and the participation of Chinese tech companies deeply in the AI ecosystem remain the core drivers for their upward trajectory.
To capture the potential of the 2026 AI commercialization era, focus on core AI tools in Hong Kong stocks. The Hong Kong Internet ETF (513770) and its feeder funds (Class A: 017125; Class C: 017126) passively track the CSI Hong Kong Stock Connect Internet Index. Their top ten holdings aggregate tech giants like Alibaba-W and Tencent Holdings, along with AI application companies across various sectors, showcasing significant leading advantages. They offer intraday T+0 trading with good liquidity.
For investors bullish on Hong Kong tech but seeking to reduce volatility, consider the market's first Hong Kong Large-Cap 30 ETF (520560). It employs a "tech + dividend" barbell strategy, with heavyweight positions including high-growth tech stocks like Alibaba and stable, high-dividend bank and insurance stocks, 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 financial situation and risk tolerance, paying close attention to position and risk management.
Data source: Shanghai and Shenzhen Stock Exchanges, etc. Institutional view source: Huatai Securities report dated March 16, 2026, "Cost-Effectiveness of Left-Side Layout in Hong Kong Tech Stocks is Increasing." ETF fee note: Subscription or redemption agents may charge a commission up to 0.5%, including fees from exchanges and registration institutions. Feeder fund fee note: Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A) front-end load: 1% for subscriptions below 1 million CNY, 0.6% for 1-2 million CNY, 1,000 CNY flat for 2 million CNY and above; redemption fee: 1.5% if held less than 7 days, 0% if held 7 days or more; no sales service fee. Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class C): no subscription fee; redemption fee: 1.5% if held less than 7 days, 0% if held 7 days or more; sales service fee: 0.3%.
Risk warning: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index (base date: Dec 30, 2016; launch date: Jan 11, 2021). Index constituents are adjusted per its rules. Constituent information is for display only; individual stock descriptions are not investment advice and do not represent fund holdings. The fund manager assesses this fund's risk level as R4 (medium-high risk), suitable for aggressive (C4) or higher risk profile investors. All information herein is for reference only; investors are responsible for their decisions. No content constitutes investment advice, and no liability is accepted for losses. Past performance of other funds managed does not guarantee future results. Fund investment carries risk; invest cautiously.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
Comments