Middle East Capital "Returns to Hong Kong," Hong Kong Stocks Welcome New Narrative! Heavyweight Leaders Make Fierce Gains! Huabao Fund Hong Kong Stocks Internet ETF (513770) Rises Over 2%

On March 16, Hong Kong stocks experienced a strong rebound, with major internet giants collectively advancing. Xiaomi Group-W rose over 5%, Meituan-W increased over 3%, Tencent Holdings gained over 2%, and Alibaba-W rose more than 1%. The Hong Kong internet ETF (513770), a core AI tool for Hong Kong stocks, accelerated in the afternoon, closing up 2.44%. The Hong Kong Large Cap 30 ETF (520560), which employs a “tech + dividend” dumbbell strategy, closed up 1.97%.

Market sentiment is being driven by multiple catalysts, opening a new chapter for Hong Kong stocks.

On one hand, Hong Kong’s low valuation, offshore market, and unique assets attract the attention of overseas risk-averse funds. Reports indicate that Middle Eastern investors who moved to Singapore or Dubai years ago are now considering reallocating some of their businesses or assets back to Hong Kong.

Additionally, Wall Street’s “big short” Michael Burry recently stated that the sharp decline in the Hang Seng Tech Index is the only case in history driven purely by multiple compression (i.e., valuation and sentiment). The extreme divergence between index valuation and fundamentals presents a historic investment opportunity.

On the other hand, AI application commercialization is accelerating. Alibaba announced the launch of an enterprise-level AI flagship application, intensifying efforts to compete in the AI Agent market. Openclaw provided directions for AI application commercialization, with token consumption growing exponentially. Platform-based internet companies, leveraging their data, scenarios, and platform advantages, are speeding up AI commercialization and revaluation of their value.

This week will see the release of Tencent Holdings’ and Alibaba’s latest financial reports. Huayuan Securities believes that the platform advantages of leading internet companies are reflected in their resilient fundamentals. Meanwhile, R&D and investment in underlying AI technologies, as well as the implementation and execution of AI applications, remain core to industry development and market activity. It is recommended to continue monitoring the long-term narratives and progress in AI and related fields.

Seize the opportunity of 2026, the inaugural year of AI commercialization, and focus on core AI tools in Hong Kong stocks. The Hong Kong internet ETF (513770) and its linked funds (Class A 017125; Class C 017126) track the CSI Hong Kong Stock Connect Internet Index. The top 10 holdings include tech giants Alibaba-W, Tencent Holdings, Xiaomi Group-W, and various AI application companies across sectors, highlighting their strong leadership advantages.

Interested in Hong Kong tech stocks but want to reduce volatility? The only ETF in the market—Hong Kong Large Cap 30 ETF (520560)—employs a “tech + dividend” dumbbell strategy. Its top holdings include high-growth tech stocks like Alibaba and Tencent, as well as stable, high-dividend companies like China Construction Bank and Ping An Insurance, making it an ideal long-term core holding for Hong Kong stock allocation.

Note: The Hong Kong Large Cap 30 ETF (520560) is the only ETF tracking the Hang Seng China (Hong Kong-listed) 30 Index.

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

Data sources: Shanghai and Shenzhen Stock Exchanges, etc.

Institutional opinion source: Huayuan Securities 20260315 “Apple reduces App Store commissions, focus on major company earnings and business guidance.”

ETF fee details: When subscribing or redeeming fund shares, agents may charge a commission up to 0.5%, including related fees from stock exchanges and registries. Linked fund fee details: Huabao CSI Hong Kong Stock Connect Internet ETF (A class) has a front-end fee of 1,000 RMB per transaction for subscriptions over 2 million RMB, 0.6% for 1–2 million RMB, and 1% below 1 million RMB; redemption fee is 1.5% if held less than 7 days, 0% if held 7 days or more, with no sales service fee. Huabao CSI Hong Kong Stock Connect Internet ETF (C class) has no subscription fee, a redemption fee of 1.5% if held less than 7 days, 0% otherwise, and a sales service fee of 0.3%.

Risk warning: The Hong Kong internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index, which was launched on January 11, 2021, based on the base date of December 30, 2016. 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 is assessed as R4—medium-high risk, suitable for active investors (C4) and above. All information in this article (including stocks, comments, forecasts, charts, indicators, theories, and any other statements) is for reference only. Investors are responsible for their own investment decisions. The views, analyses, and forecasts in this article do not constitute investment advice and do not hold the issuer liable for any direct or indirect losses resulting from use. Past performance of other funds managed by the issuer does not guarantee future results. Investing in funds involves risks; please invest cautiously.