After Tencent Cloud, Alibaba Cloud officially announces a price increase! Huabao Fund's Hong Kong Stock Internet ETF (513770) experiences a sharp surge, and news of Middle Eastern funds returning to Hong Kong spreads again.

In the afternoon of March 18, a price increase news triggered a surge, with Alibaba-W rising vertically from the water, with an increase of over 3% at one point and closing up 2.3%. Alibaba announced that due to the explosion in global AI demand and supply chain price increases, Alibaba Cloud AI computing power, storage, and other products saw price hikes of up to 34%. Other cloud computing concept stocks also followed with gains, with Kingsoft Cloud soaring 18%.

Regarding popular ETFs, the Hong Kong Stock AI core tool—the Hong Kong Internet ETF (513770)—initially declined then rebounded, closing up 0.65%, after falling more than 1% in the early trading session.

Alibaba Cloud’s recent price hikes include: the Pingtouge Zhenwu 810E computing card products increasing by 5%-34%; the file storage product CPFS (Intelligent Computing Edition) rising 30%. According to insiders, another major reason for the price increase is the “explosive growth in Token call volume.” Alibaba Cloud’s MaaS business, Bailian, achieved its highest growth rate from January to March this year. Alibaba Cloud is shifting scarce AI computing resources toward the Token business.

Not long ago, Tencent Cloud announced a price increase, with a major adjustment to the billing strategy for the Hun Yuan series large models, with some models seeing increases of up to 463%. Rising cloud product prices indicate that leading internet companies have stronger commercialization capabilities during the AI cycle, potentially leading to a revaluation of the profitability of the Hong Kong stock technology sector.

Additionally, there is news of Middle Eastern funds “returning to Hong Kong.” The Chief Executive of Hong Kong stated that the Iran conflict is expected to bring some short-term shocks and volatility to Hong Kong, but also opportunities. Hong Kong is very safe and stable, serving as a safe haven for funds, with ongoing long-term capital inflows.

CMB International pointed out that the foundation for a bull market in Hong Kong stocks remains, with relative undervaluation advantages. First, it still lags behind the average level of historical bull markets; second, compared to major global stock markets, Hong Kong stocks are still at low valuation levels; third, A-shares still carry a premium over H-shares, and Hong Kong stocks have dividend yield advantages, with southbound funds gradually recovering; fourth, some industries remain undervalued.

Seize the first year of AI commercialization in 2026 and focus on Hong Kong stocks’ AI core tools. The Hong Kong Internet ETF (513770) and its linked funds (Class A 017125; Class C 017126) passively track the CSI Hong Kong Stock Connect Internet Index. The top ten holdings include Alibaba-W, Tencent Holdings, Xiaomi Group-W, Kuaishou-W, Bilibili-W, and other tech giants and AI application companies across various fields, with prominent leadership advantages, daily T+0 trading, and good liquidity.

Interested in Hong Kong tech stocks but want to reduce volatility? You can also consider the first-ever market-wide ETF—Hong Kong Large Cap 30 ETF (520560)—which features a “tech + dividend” dumbbell strategy, with heavy holdings in high-elasticity tech stocks like Alibaba and Tencent, as well as stable high-dividend stocks like China Construction Bank and Ping An Insurance, making it an ideal long-term core holding for Hong Kong stocks.

Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should invest rationally based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.

Data sources: Shanghai and Shenzhen Stock Exchanges, etc.

Institutional view source: CMB International 20260315 “When will the second half of the Hong Kong stock ‘slow bull’ start?”

ETF fee-related notes: When subscribing or redeeming fund units, the agent may charge a commission of up to 0.5%, including related fees from stock exchanges, registries, etc. Link fund fee notes: Huabao CSI Hong Kong Stock Connect Internet ETF Initiator-Tracked Fund (Class A) subscription fee (front-end) is 1,000 yuan per transaction for subscriptions over 2 million yuan; 0.6% for 1-2 million yuan; 1% for less than 1 million yuan. Redemption fee: 1.5% if held less than 7 days; 0% if held 7 days or more; no sales service fee. Huabao CSI Hong Kong Stock Connect Internet ETF (Class C) has no subscription fee; redemption fee is 1.5% if held less than 7 days, 0% if held 7 days or more; sales service fee is 0.3%.

Risk warning: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index, which was effective from December 30, 2016, and published on January 11, 2021. The index components are adjusted periodically according to the index rules. The stocks listed are for display purposes only; descriptions do not constitute investment advice and do not reflect holdings or trading activity of any fund managed by the issuer. The risk level of this fund, assessed by the fund manager, is R4—moderate to high risk, suitable for aggressive (C4) and above investors. All information in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any other statements) is for reference only. Investors are responsible for their own investment decisions. The views, analysis, and forecasts in this article do not constitute investment advice and the issuer is not responsible for any direct or indirect losses resulting from the use of this content. Past performance of other funds managed by the fund manager does not guarantee future results. Investment in funds involves risks; please invest cautiously.