On October 15, Hong Kong stocks opened higher in early trading, with both the Hang Seng Index and Hang Seng Tech Index rising over 1%. Tech leaders saw widespread gains, with Bilibili-W leading with a 4% increase, while BABA-W and Xiaomi Group-W both rose over 2%, followed by Meituan-W and Tencent Holdings gaining over 1%. The Hong Kong Internet ETF (513770), a core AI tool for Hong Kong stocks, saw its intraday price rise 1.53%.
Overnight Federal Reserve news emerged as Powell hinted at preserving the possibility of an October rate cut, which the market interpreted as "consolidating expectations for further rate cuts," keeping the Fed on track for another rate reduction. According to CME's "FedWatch," the probability of a 25 basis point Fed rate cut in October reached 97.3%.
Cathay Securities stated that looking at the fourth quarter, Hong Kong tech stocks are more likely to benefit from current industry trends. Under the Fed's rate-cutting backdrop, foreign capital inflows may exceed expectations, combined with continued southbound capital increases, Hong Kong stocks are expected to reach new highs in Q4, with technology sectors having the greatest upside potential.
Huatai Securities noted that Hong Kong stock liquidity and sentiment may have further room for release in the short term, with high volatility likely to persist. However, the medium to long-term upward trend for Hong Kong stocks remains unchanged, and trading themes may strengthen again.
China Merchants Securities indicated that the internet sector remains the most elastic theme for Hong Kong stocks, with loose liquidity boosting valuations. Alibaba and Tencent's cloud businesses are experiencing unexpectedly rapid growth in a favorable industry environment, with strong earnings support from tech giants. Self-developed AI chips for training large models may reshape the global AI chip competitive landscape, enhancing sustainable monetization capabilities.
Notably, recent capital has been steadily increasing positions in Hong Kong AI core assets through ETFs, demonstrating optimistic expectations. Shanghai Stock Exchange data shows that the Hong Kong Internet ETF (513770) has seen cumulative net inflows of 130 million yuan over the past 5 days.
The Hong Kong Internet ETF (513770) and its feeder funds (Class A 017125; Class C 017126) track the CSI Hong Kong Stock Connect Internet Index. BABA-W, Tencent Holdings, and Xiaomi Group-W are its top 3 weighted stocks, with weightings of 18.92%, 15.60%, and 11.54% respectively. The top 10 holdings aggregate leading internet companies across various sectors, with a combined weighting exceeding 73%, showing significant leadership advantages and representing core Hong Kong AI targets.
Since the beginning of this year, under AI concept support, the internet sector has shown significantly higher elasticity, with the CSI Hong Kong Stock Connect Internet Index notably outperforming the Hang Seng Tech Index, demonstrating outstanding leading resilience.
Additionally, the internet sector has lower valuations, with the CSI Hong Kong Stock Connect Internet Index's latest P/E ratio at only 26.69x, positioned at the 32.79% percentile of the past 10 years at a medium-low level, not only significantly superior to US and A-share technology stocks but also lower than the Hang Seng Tech Index's historical percentile (38.31%) for the same period.
The Hong Kong Internet ETF (513770) has reached a record high scale of over 11 billion yuan; year-to-date average daily trading volume exceeds 600 million yuan, supporting intraday T+0 trading without QDII quota restrictions, offering excellent liquidity! Reminder: Recent market volatility may be significant, and short-term gains and losses do not indicate future performance. Investors must invest rationally based on their financial situation and risk tolerance, paying high attention to position and risk management.
Data source: Shanghai and Shenzhen Stock Exchanges, etc. The CSI Hong Kong Stock Connect Internet Index's annual returns for the past 5 complete years were: 2020: 109.31%; 2021: -36.61%; 2022: -23.01%; 2023: -24.74%; 2024: 23.04%. Index constituent stocks are adjusted according to index compilation rules, and historical backtesting performance does not predict future index performance.
Risk Warning: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index, with a base date of December 30, 2016, and published on January 11, 2021. Index constituent stocks are adjusted according to index compilation rules. Individual stocks mentioned in this article are for display purposes only and do not constitute investment advice in any form, nor do they represent holding information or trading activities of any fund under management. The fund manager assesses this fund's risk level as R4-medium-high risk, suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors must be responsible for any independent investment decisions. Furthermore, any views, analyses, and predictions in this article do not constitute investment advice to readers in any form, nor do they bear any responsibility for direct or indirect losses caused by using the content of this article. The performance of other funds managed by the fund manager does not guarantee fund performance, past fund performance does not represent future performance, fund investment involves risks, and fund investment should be approached with caution.
MACD golden cross signal formed, these stocks show good upward momentum!