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, the FTSE China Index announced a reduction in the management and custody fee rates for its Hong Kong Stock Connect Internet ETF, FTSE (159792), and its feeder 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 will drop from 0.1% per year to 0.05% per year. The new fee rates will take effect on March 27, 2026.

(Announcement screenshot)

The Hong Kong Stock Connect Internet ETF FTSE closely tracks the CSI Hong Kong Stock Connect Internet Index (931637.CSI). As of March 25, the fund size exceeded 65 billion yuan, making it the largest cross-border ETF and single industry theme ETF in the entire market.

Public information shows that the Hong Kong Stock Connect Internet ETF FTSE and its feeder funds focus on the Hong Kong internet sector, covering e-commerce, social media, healthcare technology, and other tracks. The top ten constituent stocks of the benchmark index include internet technology leaders such as Alibaba, Xiaomi, Tencent, and Meituan, with the four giants accounting for over 53% of the weight. Relevant companies have a deep technological foundation in emerging fields such as AI, cloud computing, and big data, serving as the “ballast” for core technology assets in the Hong Kong market.

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

The current Hong Kong stock market is characterized by index fluctuations and sector differentiation, with capital focusing on performance certainty and valuation recovery.

FTSE Hong Kong Stock Connect Internet ETF fund manager Tian Ximeng stated that the current Hong Kong stock market is witnessing the resonance of multiple positive factors. Core assets such as the Hong Kong Stock Connect Internet are expected to experience dual opportunities for valuation and performance recovery, injecting confidence into the market.

He also noted that the current positive signals in the Hong Kong stock market are mainly concentrated in three areas:

First, industry profit recovery is expected. With regulatory authorities signaling a “counter-rolling” initiative, the irrational subsidy war in the food delivery industry has been called off, and the termination of subsidies is expected to significantly raise overall profit expectations for the industry.

Second, the iteration of large model technology is about to drive valuation restructuring. Previously, the market had doubts about the AI model capabilities of leading internet companies, but this expectation is likely to see a turning point in April, as relevant leading enterprises plan to release significant updates to their large models, continuously strengthening their core technology layout in AI, cloud computing, and more. Substantial breakthroughs in technological strength are expected to boost market confidence and drive valuation recovery.

Additionally, the global risk appetite has rebounded, providing support for the Hong Kong stock market. Tian Ximeng analyzed that as the most pessimistic scenarios of geopolitical friction gradually dissipate, external market pressures are likely to ease further, potentially driving a rebound in global risk appetite and bringing incremental capital support to the Hong Kong stock market.

Editor/Xu Nannan

(Fund Announcement)