The wave of fee reductions in public funds continues, this time affecting a near-80-billion-yuan "giant" product. On March 26, ChinaAMC announced it will lower the management and custody fees for its Hong Kong Stock Connect Internet ETF (159792) and its feeder funds (Class A 014673, Class C 014674). The management fee drops from 0.5% per year to 0.15% per year, and the custody fee decreases from 0.1% per year to 0.05% per year, making them the lowest tiers among comparable ETFs. The new fee rates will take effect on March 27.

Wind data shows that the Hong Kong Stock Connect Internet ETF closely tracks the CSI Hong Kong Stock Connect Internet Index. By the end of 2025, the fund's size had reached 79.479 billion yuan, making it the largest cross-border ETF and the largest single-sector thematic ETF by size in the market.

Based on public data estimates, this fee reduction is expected to save investors approximately 334 million yuan annually in total. Specifically, the nearly 80-billion-yuan Hong Kong Stock Connect Internet ETF (159792) is projected to save investors about 318 million yuan per year, while the two feeder funds combined are estimated to save around 30 million yuan annually. It is important to note that these calculations are based on the fund size data as of the end of 2025 and do not account for subsequent changes in size or the actual number of days the new rates are in effect; the results are therefore estimates.

Public information indicates that the Hong Kong Stock Connect Internet ETF and its feeder funds focus on the Hong Kong internet sector, covering areas such as e-commerce, social media, and healthcare technology. The top ten constituents of the underlying index, the CSI Hong Kong Stock Connect Internet Index, include internet giants like Alibaba, Xiaomi, Tencent, and Meituan, with these four leaders accounting for over 53% of the index weight.

However, the fund has recently faced performance pressure. As of March 25, 2026, the fund's net asset value per unit was 0.7210 yuan. In terms of performance, it fell 9.82% over the past month, declined 16.06% over the past three months, and dropped 17.28% over the past year, placing its performance in the "poor" range among peers. The underlying CSI Hong Kong Stock Connect Internet Index also fell by over 13% during the same period.

Despite short-term pressures, industry analysts suggest that with regulators explicitly halting irrational "subsidy wars" in the food delivery industry, the sector is accelerating its move away from internal competition, significantly boosting profit recovery expectations. Coupled with leading companies like Tencent and Alibaba continuously increasing their investments in core technologies such as AI and cloud computing, the Hong Kong internet sector is poised for potential dual opportunities in valuation and earnings.

Overall, as the largest cross-border ETF by size in the market, ChinaAMC's fee reduction not only lowers holding costs for investors but also further strengthens its competitive edge among similar products.

With the ongoing fee reform, the industry trend of "reducing fees and increasing efficiency" is becoming firmly established. To date, the number of funds with an annual management fee of 0.15% or lower has exceeded 1,200, and the number of funds with an annual custody fee of 0.05% or lower has surpassed 2,400.