On November 17, Hong Kong stocks opened lower with mixed performances among tech giants. As of press time, Alibaba-W (09988) and Meituan-W rose over 1%, while Tencent Holdings and Xiaomi Group-W dipped slightly, and Bilibili-W fell more than 1%.
The HK Internet ETF (513770), a core AI asset in Hong Kong’s market, fluctuated after a low opening but traded at a premium, indicating strong buying interest. The fund was up 0.17% intraday with turnover nearing RMB 200 million.
Internet leaders continue to drive AI narratives. Alibaba (BABA) launched the public beta of its AI app "Qianwen," marking its full entry into the consumer-facing AI market to compete with ChatGPT. The app is expected to integrate services like maps, food delivery, ticketing, office tools, education, e-commerce, and healthcare, enhancing its utility.
Recent earnings reports from internet giants have also impressed. Tencent Holdings and Bilibili both posted better-than-expected Q3 results, reflecting robust core businesses and AI’s potential to further boost monetization.
Guosen Securities noted that since 2025, Hong Kong’s internet sector has shifted focus to AI, entering a new growth phase. By 2026, AI is expected to accelerate core business development, with AI agents and ecosystem synergies unlocking fresh commercial opportunities.
Minmetals Securities remains bullish on China’s AI revaluation theme, favoring platform-based internet firms with computing resources, model capabilities, and application synergies—such as Tencent, Kuaishou, Alibaba, and Xiaomi—as well as AI ecosystem players like Meituan, JD Health, Mobvista, and 4Paradigm.
The HK Internet ETF (513770) and its feeder funds (Class A: 017125; Class C: 017126) track the CSI HK Internet Index, which is heavily weighted toward Alibaba-W (18.89%), Tencent Holdings (17.01%), and Xiaomi-W (10.05%). The top 10 holdings, comprising AI cloud computing and application firms, account for over 73% of the index.
Year-to-date, the internet sector has outperformed with AI tailwinds, as the CSI HK Internet Index has significantly outpaced the Hang Seng Tech Index. Valuation-wise, the former trades at a P/E of 24.44x, near a 10-year low of 24.8%, below the Nasdaq 100 (35.94x) and ChiNext Index (41.27x), and even lower than the Hang Seng Tech Index’s historical percentile (28.65%).
With assets exceeding RMB 11.6 billion and average daily turnover over RMB 600 million, the HK Internet ETF (513770) supports intraday T+0 trading without QDII quota constraints, offering strong liquidity.
For investors seeking exposure to Hong Kong tech with reduced volatility, the HK Large-Cap 30 ETF (520560) provides a balanced "tech + dividend" strategy, blending high-growth stocks like Alibaba and Tencent with stable dividend payers such as China Construction Bank and Ping An.
Caution: Recent market volatility may persist, and short-term gains do not guarantee future performance. Investors should assess their risk tolerance and manage positions prudently.
Data source: SSE, SZSE. The CSI HK Internet Index’s annual returns from 2020–2024 were 109.31%, -36.61%, -23.01%, -24.74%, and 23.04%, respectively. Constituent adjustments are made per index rules; past performance is not indicative of future results.
Risk disclosure: The HK Internet ETF passively tracks the CSI HK Internet Index (base date: Dec 30, 2016; launch date: Jan 11, 2021). Constituent displays are for reference only and do not constitute investment advice or reflect fund holdings. The fund is rated R4 (higher risk) for aggressive investors (C4+). All information herein is for reference, and investment decisions carry inherent risks. Past performance does not guarantee future returns.