On February 11th, Hong Kong stocks opened higher and maintained gains throughout the session, with leading internet companies showing positive momentum. Bilibili Inc. - W led the advance, rising over 5%, followed by Xiaomi Corporation - W, which gained more than 4%. Kuaishou Technology - W and Meituan - W also saw increases, while Alibaba Group Holding Limited - W and Tencent Holdings Limited experienced minor declines. The Hong Kong Internet ETF (513770), representing core Hong Kong-listed AI assets, opened lower but recovered, with its intraday price rising over 1% at one point before closing up 0.96%.
Reviewing recent performance, since January 30th, leading Hong Kong internet stocks have undergone a noticeable correction, prompting investors to actively accumulate shares. Data from the Shanghai Stock Exchange shows that the Hong Kong Internet ETF (513770) attracted a total of 277 million yuan in net inflows over the past 10 days.
Feng Chencheng, the fund manager of the Hong Kong Internet ETF (513770), believes the recent correction was primarily influenced by the broader global AI sector adjustment trend. With new AI players like Zhipu AI and Minimax listing in Hong Kong, and a pipeline of other AI-related emerging companies planning to raise capital there, the proportion of "AI technology companies" within the Hong Kong internet sector is set to increase significantly. This trend is expected to highlight the instrumental value of the Hong Kong Internet ETF (513770) as a vehicle for core Hong Kong-listed AI assets.
Regarding market catalysts, while AI applications are competing fiercely for user traffic during the Spring Festival period, major language models are also accelerating their releases for the "Spring Festival slot." Alibaba's Tongyi Qianwen has recently revealed its new-generation base model, Qwen3.5, which is expected to be launched soon. DeepSeek is also set to release its new-generation large model, V4. Changjiang Securities points out that by 2026, large language models will enter a phase of deep integration of "models x scenarios." Internet platforms possess systemic advantages in models, computing power, and data, potentially leading to a full-scale battle for consumer-facing entry points. In the enterprise sector, applications with clear rules and high value are ripe for scaled implementation and represent a key breakthrough area for leading overseas companies.
Approaching the Spring Festival, China Galaxy Securities notes that the Hong Kong market exhibits a significant "Spring Festival effect," with recent corrections further enhancing valuation attractiveness and encouraging early positioning by investors. Huatai Securities suggests that numerous catalysts along the technology theme may emerge around the holiday period, recommending a balanced portfolio strategy and holding positions during the break.
To capture opportunities in what is considered the first year of AI commercialization in 2026, attention is focused on core Hong Kong AI investment tools. The Hong Kong Internet ETF (513770) and its feeder funds passively track the CSI Hong Kong Stock Connect Internet Index. Its top ten holdings, which account for over 76% of the portfolio, aggregate tech giants like Alibaba Group Holding Limited - W, Tencent Holdings Limited, Xiaomi Corporation - W, Kuaishou Technology - W, and Bilibili Inc. - W, along with AI application companies across various sectors, demonstrating significant concentration in industry leaders.
For investors bullish on Hong Kong technology but seeking to reduce volatility, consideration can be given to the market's first Hong Kong Large Cap 30 ETF (520560). It employs a "Tech + Dividend" barbell strategy, with heavyweights including high-growth tech stocks like Alibaba and Tencent, alongside stable, high-dividend payers such as China Construction Bank and Ping An Insurance, making it an ideal core holding for long-term Hong Kong market exposure.
Investors are reminded that recent market volatility may be elevated, and short-term price movements are not indicative of future performance. It is essential to invest rationally based on individual financial circumstances and risk tolerance, paying close attention to position sizing and risk management.