On March 23, Hong Kong stocks opened lower and extended declines, with leading internet companies undergoing collective adjustments. As of the time of writing, the Hong Kong Internet ETF (513770), a core AI tool for the Hong Kong market, saw its on-market price drop by 2.97%, hitting a new low since April 10, 2025. Alibaba-W fell over 3%, Xiaomi Group-W dropped more than 2%, and Tencent Holdings declined over 1%.
Recently, Alibaba Group Chairman Joe Tsai systematically outlined the three key drivers for China's AI development and announced the company's full-scale entry into the AI agent era.
Kaiyuan Securities indicated that AI applications, represented by models like Openclaw, are experiencing a deployment surge, leading to a sharp increase in token usage and driving robust demand for AI computing power. Major intelligent cloud providers have successively raised prices. On March 18, Alibaba Cloud announced on its official website that due to the global explosion in AI demand and rising supply chain costs, prices for its AI computing power, storage, and other products would increase by up to 34%. Specifically, prices for computing cards like the T-Head Zhenwu 810E rose between 5% and 34%, while the CPFS (AI Computing Version) file storage product saw a 30% price hike.
Concurrently, against the backdrop of rising AI computing costs, prices for large language models are also increasing. On March 13, Tencent Cloud not only ended the limited-time free public testing for three models—GLM 5, MiniMax 2.5, and Kimi 2.5—transitioning them to formal commercial services, but also significantly raised prices for some models in its Hunyuan series, with some fee increases exceeding 456%.
Huayuan Securities stated that AI remains one of the most critical directions in the global industrial narrative. The progress of AI products from major tech firms is still a core focus, and it is advisable to prioritize application directions where products are being implemented and generating revenue structures.
To capitalize on what is seen as the first year of AI commercialization in 2026, attention is turning to core AI tools in the Hong Kong market. The Hong Kong Internet ETF (513770) and its feeder funds (Class A: 017125; Class C: 017126) passively track the CSI Hong Kong Stock Connect Internet Index. The index's top ten holdings include tech giants like Alibaba-W, Tencent Holdings, Xiaomi Group-W, Kuaishou-W, and Bilibili-W, alongside AI application companies from various sectors, showcasing significant leading advantages. The ETF offers intraday T+0 trading with good liquidity.
For investors bullish on Hong Kong tech but seeking to reduce volatility, the Hong Kong Large Cap 30 ETF (520560), the first of its kind in the market, employs 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 Insurance, making it an ideal foundational holding for long-term Hong Kong market allocation.
Investors are reminded that recent market volatility may be significant, and short-term price movements do not necessarily indicate future performance. It is essential to invest rationally based on individual capital situations and risk tolerance, paying close attention to position sizing and risk management.
Data source: Shanghai and Shenzhen Stock Exchanges, among others.
Institutional perspectives sourced from relevant securities research reports.
ETF fee information: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions. Feeder fund fee details: For the Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A), the front-end subscription fee is a flat 1000 RMB per subscription for amounts over 2 million RMB, 0.6% for amounts between 1 million RMB (inclusive) and 2 million RMB, and 1% for amounts below 1 million RMB. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more; no sales service fee is charged. The Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class C) charges no subscription fee. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more; the sales service fee is 0.3%.
Risk warning: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. The index's base date is December 30, 2016, and it was published on January 11, 2021. The index's constituent stocks are adjusted according to its compilation rules. The mention of index constituents is for illustrative purposes only and does not constitute investment advice in any form, nor does it represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses this fund's risk level as R4 - Medium-High Risk, suitable for aggressive (C4) and higher risk-profile investors. Any information appearing herein is for reference only, and investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Past performance of the fund is not indicative of its future results. Fund investment carries risks, and caution is advised when investing in funds.