On September 4th, Hong Kong stocks opened higher and strengthened, with internet leaders leading the gains. Meituan-W rose over 5% during intraday trading, Alibaba-W, Xiaomi Group-W, and Kuaishou-W all climbed over 4%, and Tencent Holdings advanced more than 3%. The benchmark index tracked by the Huabao Hong Kong Internet ETF (513770) briefly surged over 4% and currently holds a gain of 3.92%.
On the news front, Federal Reserve Governor Christopher Waller struck a more dovish tone, stating that as long as US inflation continues to cool, he would lean toward holding interest rates steady. This has significantly tempered market expectations for a rate hike in September. Following overnight gains across all three major US indices, Hong Kong stocks received a clear boost.
Where to begin with the market opportunities? Some institutions are pointing out that AI profits are shifting from hardware to cloud providers, and the internet sector, represented by "soft tech" names like cloud vendors, is now facing new industry catalysts. As large language model technologies accelerate their deployment, the monetization paths for internet companies on both the B2B and B2C fronts are becoming increasingly clear, supporting a continuous recovery in the sector's overall fundamentals and profitability.
Analysts note that within the AI supply chain, value realization follows a clear sequence. In the early phases, the "pick-and-shovel" segments, such as optical modules, CPO, storage, and AI chips, were the first to command high valuations and gains due to scarce supply and assured demand. However, once technology matures and computing power becomes widely available, the companies that can truly achieve B2C adoption, generate steady cash flow, and accumulate genuine traffic are the core links worth long-term attention in the industry chain.
Historically, the early sellers of tools have reaped the richest rewards, but in later stages, those who actually "strike gold" often see profit scales and sustainability that far exceed their predecessors. The Huabao Hong Kong Internet ETF (513770) passively tracks the CSI Hong Kong Connect Internet Index, with heavyweight constituents including Alibaba-W and Tencent Holdings, both cloud giants, alongside AI application companies across various verticals. The top ten holdings account for over 80% of the total weight, showcasing a clear leader advantage. The ETF supports same-day T+0 trading and offers excellent liquidity.
For off-market investors, the feeder fund (Class A 017125, Class C 017126) is available. A reminder: recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should make rational decisions based on their own capital situations and risk tolerance, paying close attention to position and risk management. Data sourced from Shanghai and Shenzhen stock exchanges and Wind. The companies mentioned, Alibaba-W, Tencent Holdings, Xiaomi Group-W, Meituan-W, and Kuaishou-W, are all constituents of the CSI Hong Kong Connect Internet Index, with weightings of 15.29%, 14.75%, 11.53%, 11.14%, and 6.91% respectively as of September 3, 2026.
Fee-related details: When investors subscribe to or redeem fund shares, the subscription/redemption agency may charge a commission of up to 0.5%, which includes fees charged by stock exchanges and registration institutions. For the feeder fund, Class A shares carry a subscription fee (front-end) of 1,000 RMB per transaction for amounts over 2 million RMB, 0.6% for amounts between 1 million (inclusive) and 2 million RMB, and 1% for amounts below 1 million RMB. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days (inclusive) or more, with no sales service fee. Class C shares incur no subscription fee, a redemption fee of 1.5% for holdings under 7 days and 0% for 7 days (inclusive) or more, and a sales service fee of 0.3%.
Risk disclosure: The Huabao Hong Kong Internet ETF and its feeder fund passively track the CSI Hong Kong Connect Internet Index, which has a base date of December 30, 2016, and was launched on January 11, 2021. The annual returns of the index over the past five full years were: 27.02% in 2025, 23.04% in 2024, -24.74% in 2023, -23.01% in 2022, and -36.61% in 2021. The annualized volatility over the same period was: 33.60% in 2025, 43.49% in 2024, 32.09% in 2023, 49.01% in 2022, and 38.72% in 2021. The index composition is adjusted according to its compilation rules, and backtested historical performance does not indicate future index results. The index constituents mentioned are for illustrative purposes only and do not constitute investment advice nor represent the holdings or trading activities of any fund under the manager. The fund manager assesses the risk level of this fund as R4 (medium-high risk), suitable for investors with an aggressive (C4) profile or above. Any information in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors must be responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice to readers and shall not be held liable for any direct or indirect losses arising from the use of this content. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance does not represent future results. Fund investment carries risks; please invest with caution. The MACD golden cross signal has formed, and these stocks are showing strong momentum!