Likes ReceivedThis round of rebound exceeded 20%, with the Hong Kong Stock Market Internet ETF Huabao (513770) recovering from the bottom, as earnings stabilization resonates with the AI narrative.
On July 21, Hong Kong's internet sector showed red opening volatility, generally continuing the recent recovery trend. As of press time, Alibaba-W rose over 1%, with Xiaomi Group-W, Bilibili-W, and Kuaishou-W following suit; Tencent Holdings and Meituan-W saw slight declines. The Hong Kong Internet ETF Huabao (513770)372 million yuan over the past 10 days.
Reviewing recent performance, after undergoing deep adjustments in the first half of the year, the Hong Kong internet sector is welcoming a round of bottom recovery. Data shows that from June 29 to July 20, the CSI HK Stock Connect Internet Index accumulated gains of over 20%recovery elasticity.
Analysts believe that the market's pessimistic interpretation of AI inference costs has been severely distorted. Coupled with catalysts such as the release of Tencent's Hy3 model and Alibaba Cloud's growth exceeding expectations
Feng Chencheng, fund manager of the Hong Kong Internet ETF Huabao (513770), pointed out that the recent sector bottom recovery reflects the market gradually realizing that big tech firms' AI capabilities are not weak and can share in the dividends of the AI industrial revolution. Internet platforms possess billion-level user entry points, massive multimodal data assets, and complete ecosystems for cloud and payments, making them the "toll stations" for AI commercialization implementation. Regardless of how underlying large models iterate, commercial monetization is ultimately expected to be completed relying on platform scenarios.
On the earnings front, last year's food delivery war caused severe profit damage to the sector overall. Meituan and Alibaba's latest quarterly reports show significant narrowing of losses in their food delivery businesses. After experiencing intense involution earlier, the industry's competitive landscape has marginally optimized, and the overall upward trend of reducing losses and increasing profits is clear.
On the valuation frontfunds are starting a high-low switch, leaving considerable room for sector valuation repair.
Focus on the revaluation of Hong Kong internet leaders under AI transformation. The Hong Kong Internet ETF Huabao (513770) and its feeder funds (Class A 017125; Class C 017126) passively track the CSI HK Stock Connect Internet Index. Its weighted stocks gather tech giants like Tencent Holdings and Alibaba-W, as well as AI application companies in various fields. The top six weighted stocks account for nearly 70% , showing significant leader advantages, with intraday T+0 trading and good liquidity.
Bullish on Hong Kong tech but hoping to reduce volatility? You can also pay attention to the first in the entire market — Hong Kong Large Cap 30 ETF Huabao (520560), which features a "tech + dividend" dumbbell strategy. Its heavy holdings include high-elasticity tech stocks like Alibaba, as well as stable high-dividend sectors such as banking and insurance, making it an ideal core holding tool for long-term Hong Kong allocation.
Reminder: Market volatility may be significant recently, and short-term price changes do not predict future performance. Investors must invest rationally based on their own financial status and risk tolerance, paying close attention to position sizing and risk management.
Data Source: Shanghai and Shenzhen Stock Exchanges, etc. The base date for the CSI HK Stock Connect Internet Index is December 30, 2016, published on January 11, 2021. The index constituent composition is adjusted timely according to the index compilation rules, and its backtested historical performance does not predict future index performance. The percentage changes of the CSI HK Stock Connect Internet Index over the past 5 complete years are: 2025, 27.02%; 2024, 23.04%; 2023, -24.74%; 2022, -23.01%; 2021, -36.61%; The volatility rates over the past 5 complete years are: 2025, 33.60%; 2024, 43.49%; 2023, 32.09%; 2022, 49.01%; 2021, 38.72%.
ETF Fee Related Instructions: When investors subscribe or redeem fund shares, the subscription and redemption agent may charge a commission at a rate not exceeding 0.5%, which includes related fees collected by stock exchanges, registration institutions, etc. Feeder Fund Fee Related Instructions: For Huabao CSI HK Stock Connect Internet ETF Feeder Fund (Class A), the subscription fee (front-end load) is 1000 yuan per transaction when the subscription amount is above 2 million yuan, 0.6% when between 1 million yuan (inclusive) and 2 million yuan, and 1% when below 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 Huabao CSI HK 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; the sales service fee is 0.3%.
Risk Disclosure: The Hong Kong Internet ETF Huabao and its feeder funds passively track the CSI HK Stock Connect Internet Index. The base date for this index is December 30, 2016, published on January 11, 2021. The index constituent composition is adjusted timely according to the index compilation rules. The index constituents mentioned in the text are for display purposes only, and individual stock descriptions do not constitute any form of investment advice, nor do they represent the holding information or trading trends of any funds managed by the manager. The risk level of this fund assessed by the fund manager is R4-Medium High Risk, suitable for aggressive (C4) and above investors. Any information appearing in this document (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be responsible for any investment decisions made autonomously. In addition, any views, analyses, and predictions in this document do not constitute any form of investment advice to readers, and we assume no responsibility for any direct or indirect losses caused by the use of the content in this document.The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance of a fund does not indicate its future performance. Fund investment involves risks, and caution is advised.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
