As of yesterday (November 25), the HUABAO HONG KONG STOCK CONNECT HANG SENG CHINA (HONG KONG LISTED) 30 ETF (520560), which adopts a "tech + dividend" barbell strategy, has seen net inflows for four consecutive days, totaling 31.61 million yuan. This reflects market optimism toward Hong Kong stocks and active adoption of the barbell strategy for portfolio allocation.
On the news front, Alibaba released its Q2 FY2026 earnings report on the evening of November 25. Cloud revenue grew 34% year-over-year, while AI-related product revenue achieved triple-digit YoY growth for the ninth consecutive quarter. Capital expenditures for the quarter reached 31.5 billion yuan, with approximately 120 billion yuan invested in AI and cloud infrastructure over the past four quarters. CITIC Securities noted that Alibaba's continued commitment to AI infrastructure signals steady progress in domestic computing power self-sufficiency, potentially marking an industry inflection point. Investors are advised to focus on leading companies with precise positioning and long-term competitive advantages.
Notably, as of the end of October, Alibaba accounted for 18% of the benchmark index tracked by the HUABAO HK Stock Connect ETF (520560).
On the dividend front, major state-owned banks have recently initiated interim dividends, with payouts scheduled for early December—earlier than in 2024—accelerating the interim dividend trend. The "Big Four" banks (ICBC, ABC, BOC, and CCB) are set to distribute over 10 billion yuan each, with the six largest banks collectively paying out 204.657 billion yuan, accounting for nearly 80% of total interim dividends from listed banks.
Industry experts highlight that the Fed's potential rate cuts in December are becoming clearer. Historical data shows Hong Kong stocks often exhibit significant resilience during Fed easing cycles. Given current conditions, investors face heightened uncertainty by betting on a single market style. The barbell strategy—combining growth leaders favored by foreign institutions with high-dividend stocks—aligns well with the "policy support + tech breakthroughs" environment.
Valuation-wise, the benchmark index of the HUABAO HK Stock Connect ETF (520560) currently trades at a P/E of 10.25x, in the 64.77th percentile since listing, offering attractive valuation and higher safety margins. The tech-driven new economy in Hong Kong stocks supports positive earnings expectations, with ample room for index valuation recovery.
For investors bullish on Hong Kong tech but seeking lower volatility, the HUABAO HK Stock Connect ETF (520560) and its feeder funds [Feeder A (LOF) 501301; Feeder C 006355] provide an ideal solution. The ETF combines high-growth tech stocks like Alibaba and Tencent with stable high-dividend picks such as China Construction Bank and Ping An, featuring flexible "T+0" trading as a long-term core holding for Hong Kong markets.
Risk Disclosure: The HUABAO HK Stock Connect ETF passively tracks the Hang Seng China (Hong Kong Listed) 30 Index (base date: January 3, 2000; launch date: January 20, 2003). Index constituents are adjusted per its methodology. Constituent stocks are for reference only and do not constitute investment advice or reflect fund holdings. The fund is rated R4 (higher risk) and suitable for aggressive (C4) or above investors. All information herein is for reference only, and investors assume full responsibility for independent decisions. Past performance does not guarantee future results. Investment involves risks.