Overnight, U.S.-listed Chinese stocks surged, with the Nasdaq Golden Dragon China Index rising 3.89%. The 2x Long China Internet ETF soared over 9%, and Alibaba's U.S. shares jumped more than 8% following its earnings report.
In early trading on May 14, Hong Kong stocks opened higher in sync. BABA-W surged 8%, Kuaishou-W gained nearly 5%, Meituan-W rose close to 4%, while TENCENT and Xiaomi Group-W advanced over 2%. The core Hong Kong AI investment tool, the H-shares Internet ETF (513770), saw its on-market price rise 3.3%.
The catalyst was the latest earnings reports from Alibaba and TENCENT, with AI-related business progress becoming a key focus. Despite profit pressure from significant investments, Alibaba's AI business has officially entered a "commercial return cycle." Alibaba Cloud's external commercial revenue surged 40%, with AI-related revenue accounting for 30%, marking the eleventh consecutive quarter of triple-digit year-on-year growth. Its T-Head GPU chips have achieved mass production. Alibaba stated that over the next five years, its investment in AI infrastructure will far exceed 380 billion yuan, with the potential to achieve full-stack self-developed chips.
TENCENT has made significant breakthroughs in AI products. In April, it launched the Hy3 preview large language model, built on its rearchitected AI infrastructure. Since April 28th, based on token consumption, it has become the most widely used model on OpenRouter. Its efficiency AI agent solution is showing initial success; measured by daily active accounts, WorkBuddy has become China's most popular efficiency AI agent service. TENCENT revealed that more domestically produced chips will be deployed in the second half of the year, with capital expenditure also set to increase significantly. It is considering integrating its Hunyuan model with WeChat workflows.
Industrial Securities points out that the domestic computing power supply chain is currently experiencing a catch-up rally relative to the North American computing power chain, and one should not overlook that Hong Kong-listed internet stocks are also a key theme in this expansion.
On one hand, the capital expenditure and guidance from major Hong Kong-listed internet companies for the domestic computing power chain are analogous to North American CSP (Cloud Service Provider) companies for the North American chain, representing a symbiotic "all boats rise" relationship. Therefore, Hong Kong-listed internet stocks inherently possess the trading attributes of domestic computing power. On the other hand, Hong Kong-listed internet platforms, with their superior social scenarios and ecosystems, are also primary beneficiaries of AI application deployment, giving them AI application trading attributes as well. Both are important directions for the expansion of the domestic AI market.
Furthermore, from a global comparison perspective, cloud providers represented by Hong Kong-listed internet companies are also poised to be a subsequent catch-up play in the domestic AI market. Since April, North American cloud provider stocks have begun to recover, and recent better-than-expected earnings and capital expenditure guidance from major CSPs have driven significant stock price gains. In contrast, domestic cloud providers' gains have lagged, making them a potential catch-up play following the overseas trend.
To capitalize on the 2026 AI commercialization inflection point, focus on core Hong Kong AI tools. The H-shares Internet ETF (513770) and its feeder funds (Class A: 017125; Class C: 017126) passively track the CSI Hong Kong Stock Connect Internet Index. Its top ten holdings aggregate tech giants like BABA-W and TENCENT alongside AI application companies across sectors, offering significant leading advantages. It supports intraday T+0 trading with good liquidity.
Interested in Hong Kong tech but want to reduce volatility? Also consider the market's first Hong Kong Large-Cap 30 ETF (520560). It employs a "tech + dividends" barbell strategy, with holdings including high-growth tech stocks like Alibaba alongside stable, high-dividend banks and insurers, making it an ideal long-term core holding for Hong Kong market exposure.
Reminder: Recent market volatility may be high. Short-term price movements do not predict 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 & Shenzhen Stock Exchanges, etc.
ETF fee note: When subscribing for or redeeming fund units, subscription/redemption agents may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges and registration institutions. Feeder fund fee note: For the Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class A), the subscription fee (front-end load) is 1000 yuan/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 7 days or more. No sales service fee is charged. For the Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (Class C), no subscription fee is charged. The redemption fee is 1.5% for holding periods under 7 days and 0% for 7 days or more. The sales service fee is 0.3%.
Risk Disclosure: The H-shares Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index (Base Date: Dec 30, 2016; Release Date: Jan 11, 2021). Index constituents are adjusted per its compilation rules. Constituent stocks mentioned are for illustrative purposes only; individual stock descriptions are not investment advice and do not represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses this fund's risk level as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Any information herein (including但不限于 stocks, commentary, forecasts, charts, indicators, theories,任何形式的表述等）is for reference only. Investors are responsible for their own investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to the reader, nor shall there be any liability for 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 the fund does not indicate its future results. Fund investment involves risk; invest with caution.
A MACD golden cross signal has formed; these stocks are performing well.
