On October 16, leading Hong Kong internet names strengthened once again. Alibaba-W rose over 4% intraday and closed up more than 2%, while Baidu Group-W gained over 3% during the session and finished 1.4% higher. Kuaishou-W climbed more than 2%. In addition, Beike-W, Oriental Selection, Fanshi Intelligence, and Kingsoft Cloud were among the top gainers.
The Hong Kong Internet ETF Huabao (513770) opened higher and moved up steadily, with its benchmark index once reaching a 3% gain before closing up 1.11%. Internet leaders are accelerating the deployment of AI applications, further deepening the commercialization logic.
On October 15, Apple Board Executive Chairman Tim Cook publicly stated that Apple Intelligence and the related Alibaba Qwen large model have indeed received approval and will release a test version later in October, featuring the first batch of Apple Intelligence functions including real-time translation, writing tools, and photo cleanup tools. Another heavyweight constituent of the Hang Seng Hong Kong Connect Internet Index, Baidu, is deeply embedded in Siri's voice interaction and visual search modules.
Not long ago, Alibaba Qwen officially announced the launch of its personal AI assistant "Qwen Go" and opened experience applications on the Qwen App. It is based on an Agent architecture and can autonomously complete multi-round negotiation tasks in internal testing. The market interprets this as a signal that domestic AI is moving from Chatbot toward personal Agent execution.
Kuaishou's Kling AI officially launched its next-generation video generation model Kling 4.0, with comprehensive performance upgrades. Public information shows that Kling AI has attracted over 100 million users across 224 countries and regions globally, serving more than 50,000 enterprises, with annual revenue reaching the $500 million scale.
Meanwhile, with third-quarter earnings disclosures approaching, multiple internet leaders are releasing stabilization signals. Alibaba's performance guidance shows that Alibaba Cloud continues to accelerate growth, and the profit side of its core e-commerce business exceeded expectations. JPMorgan noted that Alibaba's profit structure will reach a key turning point in the quarter ending December 2026. As cloud business revenue grows over 50% year-on-year and operating margins continue to improve, cloud business profits will be sufficient to cover AI-related expenditures. Currently, the market has not fully reflected the turning point where December quarter cloud profits surpass AI spending, as well as the potential for cloud business revenue growth to remain above 50% in fiscal year 2028.
Additionally, Meituan's food delivery business is showing a profit inflection point. Data shows that in September, Meituan's food delivery benefited from the dual drivers of subsidy rollback and higher average order value. Institutions believe that the profit improvement is not a short-term fluctuation but a landmark shift in the business model from "subsidies for scale" to "efficiency and monetization combined."
Hong Kong AI focuses on cloud vendor leaders, large models, and application segments. Against the backdrop of continuous profit realization in overseas application segments, the Hong Kong internet sector is expected to benefit from the mapping of the overseas AI application rally. The sector experienced a relatively deep decline earlier, and under the triple resonance of "fundamental expectations bottoming out + historically low valuations + AI commercialization realization," it is expected to usher in strategic investment opportunities.
The Hong Kong Internet ETF Huabao (513770) passively tracks the CSI Hong Kong Connect Internet Index, heavily weighted in internet leaders. Its top two holdings, Tencent Holdings and Alibaba-W, together account for over 30% weight, and the top ten constituents collectively represent over 80%, demonstrating significant leader advantages. It supports intraday T+0 trading with good liquidity. Off-exchange investors can consider the feeder funds (Class A 017125, Class C 017126).
Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should invest rationally based on their own financial conditions and risk tolerance, and pay close attention to position and risk management. Data source: Shanghai and Shenzhen Stock Exchanges, Wind, etc. ETF fee-related notes: When investors subscribe or redeem fund shares, the subscription and redemption agency may charge a commission of no more than 0.5%, which includes related fees charged by the stock exchange and registration institution. Feeder fund fee-related notes: Huabao CSI Hong Kong Connect Internet ETF Initiating Feeder Fund (Class A) subscription fee (front-end) is 1,000 yuan per transaction for subscription amounts above 2 million yuan, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1% for below 1 million yuan; the redemption fee 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. Huabao CSI Hong Kong Connect Internet ETF Initiating Feeder Fund (Class C) does not charge subscription fees, the redemption fee is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more; the sales service fee is 0.3%.
Risk disclosure: The Hong Kong Internet ETF Huabao and its feeder funds passively track the CSI Hong Kong Connect Internet Index. The index base date is December 30, 2016, and it was published on January 11, 2021. The CSI Hong Kong Connect Internet Index's returns over the past 5 complete years are: 2025, 27.02%; 2024, 23.04%; 2023, -24.74%; 2022, -23.01%; 2021, -36.61%. The volatility over the past 5 complete years is: 2025, 33.60%; 2024, 43.49%; 2023, 32.09%; 2022, 49.01%; 2021, 38.72%. The index constituent composition is adjusted in a timely manner according to the index compilation rules, and its back-tested historical performance does not predict the index's future performance. The index constituents mentioned in this article are for display purposes only. Individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager. The risk rating of this fund as assessed by the fund manager is R4-Medium-High Risk, suitable for investors with aggressive risk profiles (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 expression) is for reference only, and investors must be responsible for their own investment decisions. In addition, any views, analyses, and forecasts in this article do not constitute investment advice of any form to readers, nor do they bear any responsibility for direct or indirect losses caused by the use of the content herein. The performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Past performance of a fund does not represent its future performance. Fund investment involves risks, and caution is required. MACD golden cross signals have formed, and these stocks are performing well!
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