The largest onshore cross-border ETF, the HKD 65 billion Hong Kong Stock Connect Internet ETF, and the Fidelity and Connect Funds officially announce fee reductions.

On March 26, Fortune Fund announced that it will lower the management fee and custody fee for its Hong Kong Stock Connect Internet ETF, Fortune (159792), and its linked funds (Class A 014673 / Class C 014674). The management fee will decrease from 0.5% per year to 0.15% per year, and the custody fee from 0.1% per year to 0.05% per year. The new rates will take effect on March 27, 2026.

(Announcement screenshot)

The Hong Kong Stock Connect Internet ETF, Fortune, closely tracks the CSI Hong Kong Stock Connect Internet Index (931637.CSI). As of March 25, the fund’s size exceeded 65 billion yuan, making it the largest cross-border ETF and single-sector thematic ETF in the current market.

Public information shows that the Hong Kong Stock Connect Internet ETF Fortune and its linked funds focus on the Hong Kong internet sector, covering e-commerce, social media, healthcare technology, and other tracks. The top ten constituents of the underlying index include internet giants Alibaba, Xiaomi, Tencent, and Meituan, with the four major giants accounting for over 53% of the weight. These companies have deep technological foundations in AI, cloud computing, big data, and other emerging fields, serving as the “ballast” of core Hong Kong tech assets.

Industry insiders point out that the product’s management fee rate is set at the lowest level among similar ETFs, effectively reducing long-term holding costs for investors and further enhancing market competitiveness.

Currently, the Hong Kong stock market shows index fluctuations and sector differentiation, with funds focusing on performance certainty and valuation recovery.

Fortune Fund manager Tian Ximeng stated that the Hong Kong market is currently experiencing multiple positive factors resonating simultaneously. Core assets like the Hong Kong Stock Connect Internet ETF are expected to see valuation and performance double recovery opportunities, injecting market confidence.

He also highlighted three main positive signals in the Hong Kong market:

First, industry profit recovery is expected. With regulatory signals against “involution,” the irrational subsidy wars in the food delivery sector have been halted, and the end of subsidies is expected to significantly raise overall industry profit expectations.

Second, technological iteration of large models is driving valuation reshaping. Previously, the market doubted the AI capabilities of leading internet companies, but this expectation is likely to turn around in April. Major companies plan to release significant updates to their large models and continue investing in core technologies like AI and cloud computing. Substantial technological breakthroughs are expected to boost market confidence and drive valuation recovery.

Additionally, a rebound in global risk appetite supports the Hong Kong market. Tian Ximeng analyzed that as the most pessimistic scenarios of geopolitical friction gradually fade, external market pressures may further ease, potentially leading to a global risk appetite rebound and bringing incremental capital to Hong Kong stocks.

Editor: Xu Nannan

(Fund Announcement)

(Edited by: Xu Nannan)

Keywords: