The situation between the US and Iran is easing. The Huabao Hong Kong Stock Internet ETF (513770) rose by over 2%. AI has entered a commercialization realization turning point, and the internet may be the first allocation priority.

April’s early trading in Hong Kong stocks is off to a strong start. The Hang Seng Index is back above 25,000, the Hang Seng Tech Index closed up more than 2%, and internet blue chips collectively warmed up. Alibaba Group Holding Limited—W rose by more than 3%, Tencent Holdings rose by more than 2%, and Xiaomi Corporation—W followed higher.

Looking at the overall trend of Hong Kong stocks at this point in time, Everbright Securities believes that in the short term Hong Kong stocks may still experience “follow-the-leader” fluctuations amid external disruptions, but given that Hong Kong stocks have already fully priced in pessimistic expectations and downward pressure on earnings revisions has eased, it is not bearish on Hong Kong stocks. China Securities Jianqiao also believes that the bull market structure for Hong Kong stocks has not ended, and that this is precisely the first “add to long” opportunity within the year that is worth actively seizing.*

As for the internet sector, recently major players such as Tencent and Alibaba have already disclosed their earnings reports one after another. The “worry” over performance has been taken care of, and recently regulators issued clear stop signals regarding the intensifying competition in food delivery from outside, which has brought about expectations for performance recovery among internet leaders.

The ongoing confirmation that AI from internet companies improves efficiency in advertising, cloud, e-commerce, and other businesses continues to be validated. Tencent Cloud achieved scaled profitability in 2025, and Alibaba’s AI-related products revenue has delivered consecutive 10 quarters of triple-digit year-on-year growth. Driven by “training + inference” on two fronts, demand for foundational infrastructure such as compute power, cloud services, model foundations, and security is expanding systematically. AI is moving from the technology investment period toward a commercialization realization inflection point.

China Securities Jianqiao believes that the most important flagship assets in Hong Kong stocks still have solid earnings support. As long as risk appetite continues to recover at the margin in the future, it is almost a sure thing that capital will return to internet and AI leading companies. The internet sector should still be treated as the top-priority allocation direction.*

Seize 2026’s AI commercialization “Year One,” and focus on Hong Kong stock AI core tools. The Hong Kong Internet ETF (513770) and its linked fund (A share 017125; C share 017126) passively track the CSI Hong Kong Internet Index. The top ten weightings are made up of technology giants such as Alibaba Group Holding Limited—W and Tencent Holdings, as well as AI application companies across various fields. The leading companies’ advantages are clear. Intraday T+0 trading and strong liquidity.

Bullish on Hong Kong tech stocks but want to reduce volatility? You can also consider the first ETF across the entire market—the Hang Seng Large Cap 30 ETF (520560). It comes with a “Tech + Dividend” dumbbell strategy. The key holdings include high-volatility tech stocks such as Alibaba Group, while also covering stable, high-dividend names such as banks and insurance companies—making it an ideal core holding tool for long-term allocation in Hong Kong stocks.

Reminder: Recent market volatility may be relatively large, and short-term gains and losses do not indicate future performance. Investors must make rational investment decisions based on their own capital situation and risk tolerance, and pay close attention to position sizing and risk management.

Data source: Shanghai and Shenzhen Stock Exchanges, etc.

Institutional viewpoint source: China Securities Jianqiao 20260330 “Hong Kong stocks have their first long opportunity after the Spring Festival”; Everbright Securities 20260330 “When will Hong Kong stocks hit bottom?”.

ETF fee-related notes: When investors apply for subscriptions or redeem fund shares, the subscription and redemption agent agencies may charge commissions at a rate of no more than 0.5%, which includes relevant fees charged by the stock exchanges, registrar institutions, and so on. Linked fund fee-related notes: For the Huabao CSI Hong Kong Stock Connect Internet ETF—initiated linked fund (A share), the subscription fee rate (front-end fee) is 1,000 yuan per lot when the subscription amount is more than 2 million yuan; 0.6% when it is 1 million (inclusive) to 2 million yuan; and 1% when it is below 1 million yuan. The redemption fee rate is 1.5% when the holding period is less than 7 days; and 0% when the holding period is 7 days (inclusive) or more. No sales service fee is charged. The Huabao CSI Hong Kong Stock Connect Internet ETF—initiated linked fund (C share) does not charge a subscription fee. The redemption fee rate is 1.5% when the holding period is less than 7 days; and 0% when the holding period is 7 days (inclusive) or more. The sales service fee is 0.3%.

Risk warning: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. The index’s base date is 2016.12.30, and it was published on 2021.1.11. The index constituent stocks are adjusted from time to time according to the index compilation rules. The index constituent stocks mentioned in this article are only for demonstration; the description of individual stocks does not constitute any form of investment advice, nor does it represent any holdings information and trading movements of any funds under the management company. The risk level of this fund assessed by the fund manager is R4—medium-high risk, suitable for investors who are active (C4) and above. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of statements, etc.) is for reference only. Investors must be responsible for any investment actions they decide independently. In addition, any views, analyses, and forecasts in this article do not constitute any form of investment advice to readers, and neither do they bear any responsibility for direct or indirect losses arising from the use of the content in this article. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance of the fund does not represent its future performance. Investing in funds involves risks, and investors should be cautious.

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Editor: Yang Hongbo