Hong Kong internet stocks continued their upward momentum on August 11, with Alibaba-W rising another 2% as of press time, and Meituan-W gaining over 1%. Other notable gainers included East Buy, Mobvista, and Kingsoft Cloud. The Hong Kong Internet ETF, which heavily weights internet giants, saw its intraday price increase by over 1%, aiming for consecutive gains.
On the news front, Alibaba Cloud, leveraging a full modular design architecture, has reduced the delivery timeline for large-scale AIDC data centers to 100 days. In comparison, traditional domestic delivery cycles range from 6 to 12 months, while in the U.S., it takes 12 to 18 months. Additionally, construction costs have dropped by over 10% compared to the previous generation. This year, Alibaba Cloud plans to more than double the global capacity of its modular data centers.
The revenue structure of Alibaba Cloud is increasingly pivoting toward AI. In May, Alibaba CEO Eddie Wu stated during the fourth fiscal quarter earnings call: "AI is driving the comprehensive upgrade of Alibaba Cloud's business, with growth momentum shifting from traditional computing and storage to models, computing power, and agent services. In this quarter, AI-related product revenue accounted for over 30% of Alibaba Cloud's external commercial revenue for the first time, reaching 8.971 billion yuan, with annualized AI business revenue surpassing 35.8 billion yuan." Wu forecasted that the annualized recurring revenue (ARR) from AI models and application services, including the Bailian MaaS platform, would exceed 10 billion yuan in the June quarter and surpass 30 billion yuan by year-end.
Industry insiders point out that the launch of Alibaba's Qwen3.8-Max and the significant price increase by DeepSeek signal accelerated AI technology iteration and notably enhanced commercialization capabilities, directly boosting profit margins for related companies. Domestic AI models dominate global call volumes, and the rising download numbers for multiple AI products indicate expanding user demand, providing catalysts for AI concept enterprises.
In a recent report, Goldman Sachs recommended a phased approach to building positions in Hong Kong-listed internet and soft tech stocks. Valuations for Hong Kong internet and soft tech stocks are at cyclical lows, while subsidy losses from businesses like food delivery and instant delivery are gradually narrowing. The momentum for AI monetization trends around cloud computing, AI agents, and token consumption is strengthening, making the sector's tactical investment value increasingly prominent. The focus is on the revaluation of Hong Kong internet leaders amid the AI transformation.
The Hong Kong Internet ETF and its feeder funds (Class A: 017125; Class C: 017126) passively track the CSI Hong Kong Stock Connect Internet Index. The top ten heavyweights include major tech giants like Alibaba-W and Tencent Holdings, along with various AI application companies, offering significant leadership advantages. The fund supports intraday T+0 trading with strong liquidity. For investors looking to invest in Hong Kong tech but seeking reduced volatility, the Hong Kong Large Cap 30 ETF, the first of its kind in the market, employs a "tech + dividend" barbell strategy, with heavyweight holdings including high-elasticity tech stocks like Alibaba alongside stable, high-dividend stocks such as banks and insurance, making it an ideal long-term allocation tool for Hong Kong.
Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should invest rationally based on their own capital conditions and risk tolerance, paying close attention to position sizing and risk management. Data sources: Shanghai and Shenzhen stock exchanges, etc. ETF fee disclosure: When investors subscribe for or redeem fund shares, the subscription and redemption agency may charge a commission of up to 0.5%, which includes fees charged by the stock exchange, registration institution, and others. Feeder fund fee disclosure: For the Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A), the subscription fee (front-end) is 1,000 yuan per transaction for subscription amounts over 2 million yuan, 0.6% for amounts between 1 million (inclusive) and 2 million yuan, and 1% for amounts under 1 million yuan. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days (inclusive) or more. No sales service fee is charged. For the Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class C), no subscription fee is charged, the redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days (inclusive) or more, and the sales service fee is 0.3%. Risk warning: The Hong Kong Internet ETF and its feeder funds passively track the CSI Hong Kong Stock Connect Internet Index, with a base date of December 30, 2016, and launched on January 11, 2021. The returns of the CSI Hong Kong Stock Connect Internet Index over the past five complete calendar years are: 2025: 27.02%; 2024: 23.04%; 2023: -24.74%; 2022: -23.01%; 2021: -36.61%. Volatility rates over the past five complete calendar years are: 2025: 33.60%; 2024: 43.49%; 2023: 32.09%; 2022: 49.01%; 2021: 38.72%. The constituent stocks of the index are adjusted according to the index's compilation rules. Historical back-testing performance does not indicate future index performance. The index constituent stocks shown in this article are for display purposes only, and descriptions of individual stocks do not constitute investment advice of any form, 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 aggressive (C4) and above investors. Any information in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must take full responsibility for their own investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice for readers of any form, and the author is not responsible for any direct or indirect losses arising from the use of the content. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Past performance does not represent future returns. Fund investment carries risks, and investors should proceed with caution.
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