On February 10th, the Hong Kong stock market opened higher, with most leading technology and internet stocks gaining strength. Kuaishou-W rose nearly 4%, while Alibaba-W and Xiaomi Group-W climbed over 2%. Tencent Holdings and Bilibili-W followed with increases, while Meituan-W experienced a slight decline.
The core AI asset for Hong Kong stocks, the Hong Kong Internet ETF (513770), saw its intraday price rise more than 1% at one point, currently up 0.96%. The fund again displayed significant intraday premiums, indicating strong buying interest. Data from the Shanghai Stock Exchange shows that the Hong Kong Internet ETF (513770) has attracted a total of 227 million yuan in inflows over the past four consecutive days.
On the news front, a new PR (Pull Request) for integrating Alibaba's Qwen3.5 into the Transformers library recently appeared on the project page of HuggingFace, the world's largest AI open-source community. This has led industry speculation that the release of Alibaba's next-generation foundation model, Qwen3.5, is imminent, sparking widespread discussion in the global AI open-source community. Some commentators suggest that a "Frenzied February," led by Chinese large models, is about to begin.
There are also reports that DeepSeek will launch its new flagship AI model, DeepSeek V4, in mid-February. DeepSeek's emergence in 2025 triggered a global reassessment of Chinese technology, and further catalysts related to it are anticipated this February.
Guohai Securities pointed out that leading internet companies generally offer attractive valuations. The new wave of competition centered on large AI models, coupled with improvements in commercial ROI driven by DeepSeek's open-source initiatives and model democratization, is leading to a valuation reassessment for domestic AI. Leading internet platforms are the backbone of this cycle, possessing capabilities in large AI models, capital expenditure and talent investment, and application deployment. While user traffic in the internet sector is stabilizing, generative AI is becoming a new growth driver. There is continued optimism regarding the valuation recalibration driven by the monetization of AI and other technology businesses.
To capitalize on what is seen as the first year of AI commercialization in 2026, focus is on core AI tools in the Hong Kong market. The Hong Kong Internet ETF (513770) and its feeder funds track the CSI Hong Kong Stock Connect Internet Index. Its top ten holdings, which account for nearly 77% of the portfolio, aggregate tech giants like Alibaba-W, Tencent Holdings, Xiaomi Group-W, Kuaishou-W, and Bilibili-W, along with AI application companies across various sectors, demonstrating significant leading advantages.
For investors bullish on Hong Kong tech but seeking to reduce volatility, the Hong Kong Large Cap 30 ETF (520560) offers a "tech + dividends" barbell strategy. Its major holdings include high-growth tech stocks like Alibaba and Tencent Holdings, as well as stable, high-dividend stocks such as China Construction Bank and Ping An of China, making it an ideal core holding for long-term Hong Kong market allocation.
Investors are reminded that recent market volatility may be significant, 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.
Data shows the CSI Hong Kong Stock Connect Internet Index's performance over the past five full years was: 2021: -36.61%; 2022: -23.01%; 2023: -24.74%; 2024: +23.04%; 2025: +27.02%. The index's constituent stocks are adjusted periodically according to its rules, and its past performance does not predict future results.
A MACD golden cross signal has formed, indicating positive momentum for some stocks.