Overnight, US-listed Chinese stocks continued their upward trajectory, with the Nasdaq Golden Dragon China Index rising 1.76%, reaching its highest level since February 2022. On September 17, Hong Kong stocks opened higher in early trading, with the Hang Seng Index and Hang Seng Tech Index gaining 0.44% and 0.91% respectively.
Major technology leaders continued their strong performance, with Meituan-W rising nearly 4% and BABA-W gaining over 3%, with its stock price reaching a nearly 4-year high and Hong Kong market capitalization returning to HK$3 trillion. Kuaishou-W and Xiaomi-W rose more than 1%, while Tencent Holdings and Bilibili-W followed suit.
The Hong Kong Internet ETF (513770), a core AI investment tool for Hong Kong stocks, opened higher and continued to climb, with intraday prices rising nearly 1%, setting new historical highs and achieving 9 consecutive daily gains.
Shanghai Stock Exchange data shows that the Hong Kong Internet ETF (513770) has accumulated net inflows of RMB 2.766 billion over the past 20 trading days.
In the early hours of September 18, markets will await the results of the Federal Reserve's September interest rate meeting. CME Group data indicates a 96.1% probability of a 25 basis point rate cut and a 3.9% probability of a 50 basis point cut.
Securities analysts indicate that reviewing the five Fed rate-cutting cycles since 2000, during preventive rate cuts, growth sectors benefiting from low interest rate valuation expansion and other interest-sensitive industries clearly benefit, with Hong Kong stocks showing greater elasticity. Among these, Hong Kong internet stocks, gradually transitioning from "delivery wars" to AI narratives, may continue to benefit.
Securities research also suggests that from historical experience, markets generally rise during RMB appreciation periods, with Hong Kong stocks showing greater elasticity. This occurs because both exchange rates and stock markets reflect improved economic expectations, while market sentiment, foreign capital flows, and corporate fundamentals are also influenced by exchange rate changes. Considering both market and exchange rate factors, Hong Kong growth style stocks tend to outperform during appreciation periods.
Notably, the Hong Kong Internet ETF (513770) and its feeder funds (Class A 017125; Class C 017126) track the CSI HK Connect Internet Index, which holds heavy positions in Hong Kong technology and internet leaders. As of the latest data, Tencent Holdings, BABA-W, and Xiaomi-W are the top three weighted stocks, accounting for 15.61%, 13.37%, and 12.53% respectively. The top ten holdings account for nearly 70% of the portfolio, demonstrating significant leader advantages and representing core Hong Kong AI targets.
Since the beginning of this year, the CSI HK Connect Internet Index tracked by the Hong Kong Internet ETF (513770), a core Hong Kong AI investment tool, has significantly outperformed the Hang Seng Tech Index. As of last Friday, both cumulative gains and maximum gains exceeded the Hang Seng Tech Index by over 15 percentage points, showing outstanding leading elasticity and deserving close attention.
During the same period, the target index of Hong Kong Internet ETF (513770) had a PE ratio of 25.25 times, positioned at the 27.05% percentile of the past 10 years—a historically low level that not only significantly outperforms US and A-share technology stocks but is also lower than the Hang Seng Tech Index's historical percentile (32.46%) during the same period.
The Hong Kong Internet ETF (513770) has reached a new historical high with assets exceeding RMB 11 billion; year-to-date average daily trading volume approaches RMB 600 million, supporting intraday T+0 trading without QDII quota limitations, providing excellent liquidity.
Reminder: Recent market volatility may be significant, and short-term gains/losses do not predict future performance. Investors must invest rationally according to their financial situation and risk tolerance, paying high attention to position and risk management.
Data sources: Shanghai and Shenzhen Stock Exchanges, among others. The CSI HK Connect Internet Index's annual performance over the past 5 complete years: 2020: 109.31%; 2021: -36.61%; 2022: -23.01%; 2023: -24.74%; 2024: 23.04%. Index constituent stocks are adjusted according to index compilation rules, and historical backtesting performance does not predict future index performance.
Risk Warning: Hong Kong Internet ETF passively tracks the CSI HK Connect Internet Index, with a base date of December 30, 2016, and published on January 11, 2021. Index constituent stocks are adjusted according to index compilation rules. Individual stocks mentioned are for display purposes only and do not constitute investment advice in any form, nor represent holdings information or trading activities of any fund managed by the manager. The fund management company assesses this fund's risk level as R4-medium-high risk, suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors must take responsibility for any independent investment decisions. Additionally, any views, analysis, and predictions in this article do not constitute investment advice in any form for readers, nor do they bear any responsibility for direct or indirect losses caused by using this article's content. The performance of other funds managed by the fund management company does not guarantee fund performance. Past fund performance does not represent future performance. Fund investment involves risks, and fund investment should be approached with caution.