Hong Kong stocks opened slightly higher on February 11, with most major technology companies showing strength. At the time of writing, Xiaomi Group-W and Bilibili-W rose over 3%, while Alibaba-W and Kuaishou-W followed with gains. Meituan-W and Tencent Holdings experienced minor declines.
The Hong Kong Internet ETF (513770), representing core AI assets in Hong Kong, reversed early losses to climb more than 1% during the session, currently up 0.77%. The fund has drawn significant investor attention recently, with exchange data showing continuous capital inflows totaling 241 million yuan over five consecutive days.
Analysts suggest the Hong Kong technology sector has entered a strategic allocation period combining high probability of success with attractive risk-reward profiles. Three key bottoming signals have become increasingly evident: oversold valuations, contrarian capital inflows, and improving fundamental trends. With short-term market sentiment fully released, this presents a golden window for medium-to-long-term strategic positioning.
Capital flow data reveals substantial southbound investment activity during the recent correction period from February 2-6. Net inflows reached 56.07 billion Hong Kong dollars, marking the highest weekly inflow in three months, with average daily inflows exceeding 11.2 billion dollars, demonstrating strong mainland investor confidence in Hong Kong's technology sector.
Valuation advantages remain prominent for Hong Kong tech stocks. As of February 10, the CSI Hong Kong Internet Index traded at a trailing P/E ratio of 24.11 times, positioned at the 22.61 percentile over the past five years. This valuation sits significantly below its historical average of 35.08 times and substantially under global comparable indices, with the Nasdaq 100 Index at 35.11 times and the ChiNext Index at 42.55 times.
The AI industry is currently accelerating its transition from technological development to commercial implementation. Constituent stocks within the Hong Kong internet sector maintain deep connections with global AI technological advancements, positioning them to become primary beneficiaries of worldwide AI industry development.
The Hong Kong Internet ETF (513770) and its feeder funds track the CSI Hong Kong Internet Index, with top holdings including Alibaba-W, Tencent Holdings, Xiaomi Group-W, Kuaishou-W, and Bilibili-W. These technology giants and AI application companies collectively represent nearly 77% of the portfolio, highlighting significant concentration in industry leaders.
Investors seeking exposure to Hong Kong technology with reduced volatility may consider the Hong Kong Large Cap 30 ETF (520560), which employs a barbell strategy combining technology and dividend stocks. The fund maintains positions in high-growth technology companies like Alibaba and Tencent Holdings while including stable high-dividend stocks such as China Construction Bank and Ping An Insurance.
Recent market volatility may remain elevated, with short-term performance not necessarily indicative of future results. Investors should make rational decisions based on individual financial circumstances and risk tolerance, paying close attention to position sizing and risk management.
Historical data shows the CSI Hong Kong Internet Index recorded annual returns of -36.61% in 2021, -23.01% in 2022, -24.74% in 2023, 23.04% in 2024, and 27.02% in 2025. Index composition adjusts according to established methodology, with past performance not guaranteeing future results.
The Hong Kong Internet ETF tracks the CSI Hong Kong Internet Index, which launched on January 11, 2021, with a base date of December 30, 2016. Portfolio holdings are presented for informational purposes only and do not constitute investment recommendations or reflect actual fund positions. The fund carries an R4 medium-high risk rating, suitable for aggressive investors (C4) and above. All information provided serves as reference material only, with investors bearing full responsibility for independent investment decisions.