Reversal signal? Huabao Fund Hong Kong Stock Internet ETF rises nearly 3% from its low! AI strong catalyst, chip performance ranks first globally, Alibaba accelerates "chip-model collaboration"

On March 24, Hong Kong stocks saw a clear rebound, with the Hang Seng Index and the Hang Seng Tech Index both rising by more than 2%. Internet bellwethers surged across the board: Tencent Holdings and Meituan-W rose by more than 3%, Alibaba Group Holding-W rose by 2.92%, and Xiaomi Group-W rose by nearly 2%. Hong Kong AI core tool—Hang Seng Internet ETF (513770)—closed up 2.87% on the intraday trading.

Yesterday’s geopolitical conflict triggered an across-the-board market pullback. The Hang Seng Internet ETF (513770) plunged 4.35% to test near a new one-year low. The current sell-off sentiment may already be relatively well priced in. In the same period, the Hang Seng China Enterprises Stock Connect Internet Index’s price-earnings ratio (PE (TTM)) was only 21.37x, at a historical low corresponding to the 6.9th percentile over the past 5 years, further highlighting the valuation “value area” characteristics.

On the drivers side, with frequent AI progress announcements from internet bellwethers represented by Alibaba, commercialization has been accelerating. Financial reports show that AI chip and cloud revenue have become the new growth engine for the company. Revenue from the company’s AI-related products has delivered three-digit year-over-year growth for ten consecutive quarters. Its in-house Ping Tou Ge GPU chips have achieved scaled mass production, with cumulative scaled deliveries of 470,000 chips. Recently, companies such as Alibaba and other smart cloud vendors have raised prices one after another; model price increases such as those from Tencent Cloud have followed suit. Pay attention to signals of a profitability inflection for internet bellwethers during the AI cycle.

Latest news: At today’s Xuantie RISC-V ecology conference, Alibaba launched the RISC-V CPU Xuantie C950. While setting a new global performance record for RISC-V CPUs, it also announced that Qianwen has joined the Xuantie RISC-V Swordless Alliance, which will further promote Alibaba’s “chip-and-model synergy.”

Hua Tai Securities noted that the core competitiveness and moat of high-quality internet companies remain solid. Their large user base, diverse application scenarios, steady cash flows, and ongoing updates to business models all form the foundation for their long-term value. Looking ahead, the logic of continued breakthroughs in AI technology and deep participation by Chinese technology companies in the AI ecosystem remains the key driving force behind their upward trend.*

Seize the 2026 AI commercialization “Year One,” and focus on Hong Kong AI core tools. The Hang Seng Internet ETF (513770) and its feeder fund (Class A 017125; Class C 017126) passively track the CSI Hong Kong Stock Connect Internet Index. The top ten weight stocks concentrate technology giants such as Alibaba Group Holding-W and Tencent Holdings, along with AI application companies across various sectors. The leadership advantage is clear, with T+0 trading during the day, and strong liquidity.

Bullish on Hong Kong tech but want to reduce volatility? You can also consider the first ETF across the whole market—Hong Kong Large Cap 30 ETF (520560). It comes with a “Tech + Dividend” dumbbell strategy. Its major holdings include high-beta tech stocks such as Alibaba Group, while also covering stable high-yield dividend sectors like banks and insurance. It is an ideal core allocation tool for long-term positions in Hong Kong stocks.

Reminder: Market volatility in the near term may be relatively large; short-term gains or losses do not indicate future performance. Investors should be sure to invest rationally according to their own capital situation and risk tolerance, with a strong emphasis on position sizing and risk management.

Data source: Shanghai and Shenzhen Stock Exchanges, etc.

Source of institutional views: Hua Tai Securities 20260316 “Hong Kong Stock Tech Left-Side Positioning—Value for Money Is Improving.”

ETF fee-related note: When investors subscribe for or redeem fund shares, the subscription/redemption agent may charge a commission at a standard not exceeding 0.5%, which includes relevant fees charged by the securities exchanges, registration institutions, and so on. Feeder fund fee-related note: The subscription fee rate (front-loaded) for the initiator’s CSI Hong Kong Stock Connect Internet ETF feeder fund (Class A) is 1,000 yuan per order when the subscription amount is more than 2 million yuan; 0.6% when it is between 1 million (inclusive) and 2 million; and 1% when it is below 1 million. The redemption fee rate is 1.5% for holding periods of less than 7 days, and 0% for holding periods of 7 days (inclusive) or more; no sales service fee is charged. The initiator’s CSI Hong Kong Stock Connect Internet ETF feeder fund (Class C) does not charge a subscription fee; the redemption fee rate is 1.5% for holding periods of less than 7 days, and 0% for holding periods of 7 days (inclusive) or more; sales service fee is 0.3%.

Risk disclosure: The Hang Seng Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. The index base date is 2016.12.30, and it was published on 2021.1.11. The composition of the index constituents is adjusted from time to time according to the compilation rules of that index. The index constituents mentioned in this article are only for illustration; individual stock descriptions do not constitute investment advice of any kind, nor do they represent the holdings information and trading directions of any fund under the manager. The risk level of this fund assessed by the fund manager is R4—medium to high risk—and it is suitable for investors who are Active (C4) or above. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of statements) is for reference only; investors must take responsibility for any investment actions they make independently. In addition, any opinions, analyses, and forecasts in this article do not constitute any form of investment advice to readers, and no responsibility is assumed for any direct or indirect losses arising from the use of the content of this article. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund’s performance. The fund’s past performance does not represent its future performance. Investing in funds involves risk; investors should be cautious.

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