After stabilizing against the market downtrend last Friday, Hong Kong's AI sector launched a counterattack today, with leading tech stocks rallying strongly. Alibaba's AI assistant Qwen set a new growth record for AI applications, with Alibaba-W (09988) rising nearly 6% intraday and closing up 4.67%. Meanwhile, Kuaishou-W (01024) surged over 7% as its Kling AI video model joined the global top tier. Other notable gainers included Bilibili-W (up over 5%), Meituan-W and Tencent Holdings (both up over 2%), and Xiaomi Group-W (up over 1%).

The HK Internet ETF (513770), representing Hong Kong's core AI assets, saw its price rise nearly 3% intraday before closing 2.2% higher, reclaiming its 5-day moving average. Persistent premium trading indicated strong buying interest. Exchange data showed the ETF recorded five consecutive days of net inflows totaling 71.14 million yuan last week.

Amid rising market volatility, Hong Kong's AI stocks have consistently outperformed their A-share counterparts. Analysts attribute this to Hong Kong's earlier and deeper correction, making current valuations attractive. Huatai Securities noted that Hong Kong stocks are entering a strategic accumulation zone, suggesting gradual positioning for contrarian investors.

As of November 21, the Hang Seng Stock Connect Internet Index tracked by ETF (513770) traded at a P/E of just 21.93x—near historic lows at the 8.3 percentile over the past decade. This compares favorably with the ChiNext Index (37.72x) and Nasdaq 100 (34.75x).

Most institutions maintain bullish outlooks but expect market drivers to shift toward earnings growth. Unlike A-share AI plays, Hong Kong's internet sector aggregates稀缺 platform tech giants and hard-tech leaders deeply embedded in global AI, cloud computing, smart hardware, and semiconductor supply chains—many now transitioning from R&D to monetization phases.

Alibaba disclosed today that Qwen's app surpassed 10 million downloads within a week of its November 17 public beta launch, outpacing ChatGPT, Sora, and DeepSeek to become the fastest-growing AI application. Western Securities suggested Alibaba could monetize through subscriptions and traffic portals to create consumer-facing profit loops.

Separately, Kuaishou's Kling AI video model completed its Turbo 2.5 upgrade, joining the global elite. Its commercialization potential is bolstered by Kuaishou's ecosystem advantages. Goldman Sachs' chief China strategist stated China's AI-led stock rally is far from bubbly, with tech firms having room to boost valuations via AI applications—highlighting Hong Kong internet stocks' undervaluation and earnings flexibility.

Industrial Securities added that as overseas risk sentiment stabilizes, Chinese assets may recover on standalone merits. For tech growth sectors, they recommend monitoring narrative shifts and rotation opportunities, including AI edge computing and software applications (e.g., Hong Kong internet stocks).

The HK Internet ETF (513770) and its feeder funds (Class A 017125; Class C 017126) track the Hang Seng Stock Connect Internet Index, heavily weighted toward Alibaba-W (18.89%), Tencent (17.01%), and Xiaomi-W (10.05%). Its top 10 holdings—spanning AI cloud, foundational models, and vertical applications—account for over 73% exposure.

With assets exceeding 10 billion yuan and average daily turnover above 600 million yuan, ETF (513770) offers strong liquidity, supports intraday T+0 trading, and faces no QDII quota constraints.

For investors seeking Hong Kong tech exposure with lower volatility, the Hong Kong Large-Cap 30 ETF (520560) provides a "tech + dividend" barbell strategy, blending Alibaba/Tencent with stable high-yielders like China Construction Bank and Ping An.

Caution: Recent volatility may persist, and short-term moves don't guarantee future performance. Investors should align positions with risk tolerance and capital conditions.

Data shows the Hang Seng Stock Connect Internet Index's annual returns: 2020 (+109.31%), 2021 (-36.61%), 2022 (-23.01%), 2023 (-24.74%), and 2024 (+23.04%). Past performance doesn't predict future results.

Risk Disclosure: The ETF passively tracks an index launched on January 11, 2021 (base date December 30, 2016). Constituent changes follow index rules. Holdings shown aren't recommendations or indicative of fund positions. The fund carries R4 (higher risk) suitability for aggressive (C4+) investors. All information is for reference only—investors assume full decision liability. No content constitutes investment advice, and the manager isn't liable for indirect losses. Other funds' performance doesn't guarantee this product's returns.