On May 8, the Hong Kong stock market opened lower in the morning session, but the AI application sector bucked the trend and strengthened. Meitu Inc. saw its intraday price surge over 14%, while Maifu Shi rose more than 9%. Companies such as Kingdee International Software Group, Yimaitong, and Kuaishou-W also followed with gains. Among leading internet stocks, Xiaomi Group-W increased over 1%, while Meituan-W fell 0.89%. Alibaba-W and Tencent Holdings each declined by 1%.
The core tool for Hong Kong AI investments, the Huabao Hong Kong Internet ETF (513770), stabilized and moved upwards after a lower opening. Its on-market price is currently up 0.23%, aiming for a third consecutive day of gains.
The Hong Kong internet sector is entering a period of密集 earnings reports for the first quarter, with the AI narrative now at a stage of performance validation. Alibaba and Tencent Holdings are both scheduled to release their Q1 2026 financial results on the 13th of this month, with market expectations generally positive. Their cloud businesses are anticipated to show strong performance, primarily driven by three factors: demand released from AI industrialization, the launch of new-generation AI cloud products, and adjustments to the pricing of some services.
Guosheng Securities believes that Alibaba's full-stack AI layout is most comparable to Google's, and its cloud growth rate in the first quarter is expected to accelerate further, continuously validating returns on investment. Tencent Holdings is gradually catching up in foundational model capabilities, and the implementation of WeChat Agents will clarify the monetization path for its AI investments. The outlook for its subsequent, less-hyped AI narrative is viewed positively.
Looking ahead, as AI commercialization continues to materialize, and supported by the sector's attractive valuation, inflows of southbound capital, and improving overseas liquidity, the Hong Kong internet sector is poised for a dual recovery in both valuation and profitability.
To capitalize on 2026 as the inaugural year of AI commercialization, focus 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 include tech giants like Alibaba-W and Tencent Holdings, as well as AI application companies across various sectors, offering significant leading advantages. The ETF offers T+0 intraday trading with good liquidity.
For those 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 + dividends" barbell strategy, with heavyweight holdings including high-growth tech stocks like Alibaba, alongside stable, high-dividend stocks from sectors like banking and insurance, making it an ideal foundational holding for long-term Hong Kong market allocation.
A reminder: Recent market volatility may be significant, and short-term price movements are not indicative of 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.
ETF fee information: When subscribing for or redeeming fund shares, subscription and redemption agents may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges and registration institutions. Feeder fund fee information: The Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A) has a front-end subscription fee of 1,000 RMB per transaction for subscription amounts over 2 million RMB, 0.6% for amounts between 1 million RMB (inclusive) and 2 million RMB, and 1% for amounts below 1 million RMB. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days or more; no sales service fee is charged. The Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class C) charges no subscription fee. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days or more; the sales service fee is 0.3%.
Risk warning: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. The base date for this index is December 30, 2016, and it was published on January 11, 2021. The composition of the index's constituent stocks is adjusted according to its compilation rules. The index constituents mentioned are for illustrative purposes only; descriptions of individual stocks are not investment advice in any form and do not represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses this fund's risk level as R4 - Medium-High Risk, suitable for aggressive (C4) and higher risk-profile investors. Any information appearing herein is for reference only, and investors are solely responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is 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 this fund's performance. Past performance of the fund is not indicative of its future results. Fund investment carries risks, and caution is advised when investing in funds.
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