On February 3rd, Hong Kong's technology stocks opened higher but closed lower, with internet giants continuing their volatile trend. Alibaba-W (09988) fell over 3%, while Tencent Holdings (00700) and Bilibili-W dropped more than 5%, Kuaishou-W declined over 6%, Meituan-W fell more than 2%, and Xiaomi Group-W dipped over 1%.
The core AI asset for Hong Kong stocks, the Hong Kong Internet ETF (513770), saw its on-market price fall over 2%, marking three consecutive days of decline. Despite the drop, investors seized the opportunity yesterday, increasing holdings by 69.95 million yuan, bringing the total net inflow over the past 20 days to a substantial 1.313 billion yuan.
On February 2nd, Alibaba's Tongyi Qianwen APP officially announced the launch of its "Spring Festival Treat Plan," planning to inject 3 billion yuan in subsidies, setting a record for Alibaba's Spring Festival campaign investments and becoming the largest subsidy amount in this year's AI battle among major internet firms. On the same day, Tencent's Yuanbao initiated its Spring Festival activities, allowing users to participate in sharing a 1 billion yuan cash red envelope pool by updating the App. The battle for dominance over AI super-app portals has escalated significantly!
As one of the most closely watched sub-sectors within the AI theme, the investment value of AI applications continues to gain recognition from institutional investors. The substantial, real financial commitments from major internet companies are also expected to serve as a crucial catalyst, bolstering market confidence in the investment opportunities within the AI application space.
Guojin Securities stated that the development trend of the AI application industry is now firmly established: whether from the perspective of seeking ROI on computing power investments or from the product development angle of internet, software, and device-side companies, mastering AI applications by 2026 is already a 'mandatory course.' From a revenue contribution standpoint, a fundamental inflection point for the entire AI application industry emerged in the second half of 2025. The robust elasticity on the profit side strongly validates the cost-reduction and efficiency-improvement narrative. With operating leverage accelerating, the sector has entered a right-side investment phase supported by solid fundamentals.
Zheshang Securities also indicated that for the full year of 2026, the focus should be on valuable AI application directions and allocation opportunities in sectors like gaming. They advise paying attention to tech companies with advantages in Agent ecosystem development and the efficiency dividends arising from the accelerated implementation of AI applications.
To capture opportunities in the 2026 AI commercialization inaugural year, focus on the core tools of Hong Kong's AI market! The Hong Kong Internet ETF (513770) and its feeder fund actively track the CSI Hong Kong Stock Connect Internet Index. Its top ten holdings, accounting for nearly 77% of the portfolio, aggregate tech giants like Alibaba-W, Tencent Holdings, Xiaomi Group-W, Kuaishou-W, and Bilibili-W, along with leading AI application companies across various sectors, demonstrating significant concentration and leading advantages.
Interested in Hong Kong tech but hoping to reduce volatility? Consider the market's first offering—the Hong Kong Large Cap 30 ETF (520560). It employs a "Tech + Dividends" barbell strategy, with heavyweight positions including high-growth tech stocks like Alibaba and Tencent Holdings, while also encompassing stable, high-dividend players such as China Construction Bank and Ping An of China. This makes it an ideal core holding tool for long-term Hong Kong market allocation.
A reminder: Recent market volatility may be significant, and short-term price movements 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. The CSI Hong Kong Stock Connect Internet Index's performance over the last five full calendar years is as follows: 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 compilation rules; its past performance does not predict future returns.
ETF Fee Information: When subscribing for or redeeming fund units, 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 upfront subscription fee is 1,000 RMB per transaction for subscription 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 Disclosure: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. This index has a base date of December 30, 2016, and was published on January 11, 2021. Its constituent stocks are adjusted periodically according to the index compilation rules. The mention of index constituents herein is for illustrative purposes only; descriptions of individual stocks are not investment advice in any form and do not represent the holdings or trading activities 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 in this article is for reference only, and investors are solely responsible for any independent investment decisions. Furthermore, any views, analyses, 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 cautiously.
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