Major U.S. stock indices closed lower overnight, with leading tech stocks broadly declining. On the morning of May 20, Hong Kong stocks opened lower, with leading internet companies experiencing a collective pullback. At the time of writing, Tencent Holdings was down 0.6%, while Alibaba-W and Meituan-W fell over 1%. Xiaomi Group-W dropped more than 2%, and Bilibili-W declined nearly 5% following its earnings report. Bilibili-W's first-quarter report showed revenue of 7.47 billion yuan, with its gross margin rising for the fifteenth consecutive quarter to 37.1%. Its adjusted net profit was 590 million yuan, turning a year-on-year loss into a profit, with AI-driven advertising revenue surging 170% during the quarter. The H-Share Internet ETF (513770), a key tool for accessing Hong Kong-listed AI stocks, saw its on-market price drop over 2%, reaching a new low since the start of this correction cycle.
On the news front, the Alibaba Cloud Summit is being held in Hangzhou from May 20 to 21. Alibaba previewed the release of a "significant new addition" to its Tongyi Qianwen model family, featuring comprehensive upgrades in versatility, model capability, depth, and breadth. Furthermore, the latest news indicates that Alibaba has launched a 128-card ultra-node server based on its next-generation AI chip, the T-Head Zhenwu M890, which supports massive concurrent Agent inference. Alibaba's full-stack AI layout is most comparable to Google's. Its first-quarter report indicates that its AI business has formally entered a "commercial return cycle," accelerating its transformation into an "AI + Cloud" technology platform amid a surge in demand for AI tokens. According to Alibaba's projections, the annualized recurring revenue from its AI models and application services is expected to exceed 10 billion yuan by June and triple to surpass 30 billion yuan by year-end. Dongwu Securities noted that the Hong Kong stock market is currently in a window characterized by "risk appetite recovery and fundamental expectation improvement." The AI technology rally is expected to rotate from upstream hardware to midstream and downstream applications. The Hong Kong market holds strong representation in internet platforms, AI applications, and ecosystem scenarios, potentially positioning it to capture opportunities from the diffusion of the AI rally. Regarding valuation, the current P/E (TTM) of the CSI Hong Kong Stock Connect Internet Index is only 20.06 times, situated at a historical bottom within the 4.3% percentile over the past decade, indicating a relatively high margin of safety.
Attention is drawn to the potential value re-rating of leading Hong Kong-listed internet companies amid the AI token surge. The H-Share Internet ETF (513770) and its feeder funds passively track the CSI Hong Kong Stock Connect Internet Index. The index's top ten holdings aggregate tech giants like Alibaba-W and Tencent Holdings, along with AI application companies across various sectors, highlighting their significant leading advantages. The ETF offers same-day T+0 trading with good liquidity.
For investors bullish on Hong Kong tech but seeking to reduce volatility, the Hong Kong Large-Cap 30 ETF (520560) warrants attention. It employs a "Tech + Dividend" barbell strategy. Its major holdings include high-beta tech stocks such as Alibaba, as well as stable, high-dividend payers like banks and insurers, making it an ideal long-term core holding for Hong Kong market exposure. A reminder: Recent market volatility may be significant, and short-term price movements are not indicative of future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management. Data source: Shanghai and Shenzhen Stock Exchanges, etc. Institutional viewpoint source: Xingye Strategy, May 7, 2026, "AI Diffusion, Don't Forget the Hang Seng Tech Index." ETF fee-related note: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions. Feeder fund fee-related note: For the HuaBao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (A-Class), the front-end subscription fee is a flat 1,000 yuan per transaction for amounts over 2 million yuan, 0.6% for amounts between 1 million yuan (inclusive) and 2 million yuan, and 1% for amounts below 1 million yuan. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days or more. No sales service fee is charged. For the HuaBao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (C-Class), no subscription fee is charged. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days or more. The sales service fee is 0.3%. Risk Disclosure: The H-Share Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index. The index's base date is December 30, 2016, and it was published on January 11, 2021. The index's constituent stocks are adjusted periodically according to its compilation rules. The index constituents mentioned herein are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings information or trading动向 of any fund managed by the asset manager. The fund manager assesses this fund's risk等级 as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Any information appearing in this article is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to readers, and no liability is accepted 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 this fund's performance. Past performance of a fund is not indicative of its future results. Fund investment involves risks, and caution is required when investing in funds.
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