On March 19, Hong Kong's three major stock indices declined collectively, with most leading internet stocks pulling back. Tencent Holdings fell over 6% following its earnings report. Tencent management announced plans to at least double investment in its Hunyuan and new AI products by 2026. To support the increasing AI investments, the company expects its share buyback scale this year to be lower than that of 2025. Alibaba Group Holding declined nearly 4%.
Xiaomi Group and Meituan bucked the downward trend, with Xiaomi rising over 4%. The latest news indicates Xiaomi officially launched its flagship base model, Xiaomi MiMo-V2-Pro, which ranks eighth globally on the comprehensive AI intelligence leaderboard by Artificial Analysis.
Regarding popular ETFs, the Hong Kong Internet ETF (513770), a core tool for accessing Hong Kong's AI sector, saw its on-market price drop over 2%, falling below all its moving average lines.
Escalating Middle East geopolitical tensions and the Federal Reserve's hawkish policy decision were likely the main drags on the market. Overnight, the U.S. Federal Reserve kept interest rates unchanged as expected. Chairman Jerome Powell struck a hawkish tone, noting that the Middle East situation is pushing up oil prices and加剧 inflation uncertainty, and that the Fed will not rush to initiate rate cuts. The Nasdaq Golden Dragon China Index fell over 2%.
Guoyuan International believes the Hong Kong stock market may still face disturbances from external uncertainties. However, as the most intense period of military conflict passes, market sensitivity to warfare may decrease, while becoming more responsive to positive developments such as improved shipping safety in the Strait of Hormuz. Therefore, a market rebound might not be far off and is worth monitoring.
On the AI front, following Tencent Cloud, Alibaba Cloud recently announced price increases for AI computing power, storage, and other products, driven by a "surge in token usage" leading to higher cloud service prices. Leading internet companies possess stronger commercial monetization capabilities during the AI cycle, which could prompt a market re-rating of the profit quality of Hong Kong's tech sector.
Hong Kong's tech sector remains in a consolidation phase. As of March 18, the Hang Seng Stock Connect Hong Kong Internet Index's trailing P/E ratio was 22.03 times, sitting at a relatively low level near the 10.73rd percentile of its 5-year range. This valuation is significantly lower than that of U.S. tech represented by the Nasdaq 100 and A-share tech represented by the ChiNext Index, highlighting substantial safety margins.
To position for the anticipated 2026 AI commercialization元年, focus on core Hong Kong AI tools. 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. Its top ten holdings aggregate tech giants like Alibaba, Tencent Holdings, Xiaomi Group, Kuaishou, and Bilibili, along with AI application companies across various sectors, demonstrating significant龙头 advantages. The ETF offers intraday T+0 trading with good liquidity.
Interested in Hong Kong tech but seeking to reduce volatility? Consider the market's first Hong Kong Large-Cap 30 ETF (520560), which employs a "Tech + Dividend" barbell strategy. Its major holdings include high-growth tech stocks like Alibaba and Tencent Holdings, alongside stable, high-dividend stocks such as China Construction Bank and Ping An Insurance, making it an ideal long-term core holding for Hong Kong market exposure.
Reminder: Recent market volatility may be significant. Short-term gains or losses are not indicative of future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.
Data source: Shanghai and Shenzhen Stock Exchanges, etc.
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 information: For the Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A), the front-end subscription fee is a flat 1,000 RMB for subscriptions over 2 million RMB, 0.6% for subscriptions between 1 million RMB (inclusive) and 2 million RMB, and 1% for subscriptions below 1 million RMB. The redemption fee is 1.5% for holding periods under 7 days, and 0% for holding periods 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 holding periods under 7 days, and 0% for holding periods of 7 days or more; the sales service fee is 0.3%.
Risk提示: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. The index base date is December 30, 2016, and it was launched on January 11, 2021. The index constituents are adjusted according to its compilation rules. The constituent stocks mentioned are for illustrative purposes only; descriptions of individual stocks are not investment advice of any form and do not represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses this fund's risk等级 as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Any information appearing herein (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. 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; invest with caution.
MACD golden cross signals have formed, and these stocks are performing well.