As the second half of the year begins, capital flows within the AI sector are shifting. The market's primary focus is moving from the previously crowded upstream computing hardware segment to downstream applications and cloud services, which offer more reasonable valuations and faster commercial adoption. Since the Hong Kong-listed tech and internet sector has relatively less exposure to AI hardware, it is expected to attract incremental liquidity during this capital rebalancing phase.

A rebound in market sentiment has significantly boosted trading activity in related products. Notably, the popular Hang Seng Tech ETF Huatai-PineBridge (513130) has recorded an average daily turnover of 47 billion yuan this year, making it the only ETF tracking the Hang Seng Tech Index with an average daily turnover exceeding 45 billion yuan during the same period. Its latest net asset value stands at 35.006 billion yuan, highlighting its strong liquidity advantage.

The accelerated expansion of cloud businesses is a direct signal of commercial realization in the AI application sector. Recent quarterly earnings reports from Microsoft and Amazon exceeded market expectations: Amazon Web Services (AWS) reported a single-quarter revenue of 42.23 billion U.S. dollars, a year-on-year increase of 36.7%, marking the highest growth rate in 18 consecutive quarters. Microsoft posted total revenue of 90 billion U.S. dollars for the fourth quarter of fiscal year 2026, a year-on-year increase of 18%, with AI technology empowerment serving as the core growth engine. Its Azure cloud business alone generated 31.1 billion U.S. dollars in quarterly revenue, a year-on-year surge of 43%. As the intensive earnings season for Hong Kong-listed internet companies begins in August, institutions generally hold positive expectations for the sector's performance recovery, which is expected to provide ongoing catalysts for market trends.

Marginal improvements in capital flows are also supporting the valuation recovery of the Hong Kong tech sector. Last week, active foreign capital inflows turned positive, ending nearly two months of outflows. The pace of passive capital replenishment also accelerated, indicating a resurgence in attention from overseas long-term funds towards Chinese Hong Kong-listed stocks. Meanwhile, domestic southbound capital continues to increase its positions, focusing on the Hong Kong tech sector, which offers scarce growth attributes. Year-to-date, the information technology sector has accumulated a net purchase volume of 246.5 billion Hong Kong dollars, accounting for 66% of total southbound capital inflows. The two-way return of domestic and foreign capital is creating a positive resonance, significantly improving the liquidity environment for the Hong Kong internet sector.

Industrial catalysts are also materializing. On August 3, a leading internet company released its new-generation base model, Qwen3.8, with a total parameter count of 2.4 trillion. Its programming and professional office capabilities have been significantly enhanced, and its API has been simultaneously launched and integrated into the "Qianwen Office" Agent product. On the authoritative Arena leaderboard, the Qwen model ranks second globally. Additionally, according to the latest weekly call volume ranking released on August 2 by the global multi-model aggregation platform OpenRouter, the top five models are all developed by Chinese enterprises. The actual penetration of domestic large models in the global market is steadily increasing, which is expected to further enhance the allocation value of the Hong Kong tech and internet sector.

The Hang Seng Tech ETF Huatai-PineBridge (520500), which supports on-exchange T+0 trading, closely tracks the Hang Seng Tech Index. This index is one of the representative benchmarks for the Hong Kong tech sector, bringing together core tech companies such as Chinese internet platforms, cloud computing service providers, and AI technology firms. Its industry chain covers key areas including computing infrastructure, AI model capabilities, application scenarios, and commercial monetization, positioning it to potentially benefit deeply from the rapid development of large models. The manager of the Hang Seng Tech ETF Huatai-PineBridge (513130) and its feeder funds (Class A 015310 / Class C 015311), Huatai-PineBridge Fund, is one of the first ETF managers in China, with over 19 years of experience in index investing. It has created transparent, easily tradable, and low-cost index tools for investors, such as the CSI 300 ETF Huatai-PineBridge (510300) and the A500 ETF Huatai-PineBridge (563360). As of the end of June 2026, the company's ETFs have generated cumulative profits of over 180.6 billion yuan for holders in the past two years, making it one of only three public fund companies in the entire A-share market with cumulative profits exceeding 160 billion yuan during the same period.