Hong Kong tech stocks continue to rise in the afternoon, with the Hong Kong Stock Connect Internet ETF Huaxia (520910) at the lowest fee tier increasing nearly 6%.

On April 8, the three major Hong Kong stock indexes continued to climb. The Hang Seng Tech Index rose by more than 5%, and the Hang Seng Index rose by more than 3%. In the afternoon, the Hong Kong stock internet sector strengthened again. The Huaxia (520910) Hong Kong Connect Internet ETF, which offers the lowest fee rate tier among similar products, is already up nearly 6%. All its holdings are in the green. MFS is up nearly 14%, and MFS is up more than 12%. Meituan is up nearly 12%. Kingsoft Cloud, SenseTime, and Quzhi Group are all up nearly 10%. As of April 7, the size of the Huaxia (520910) Hong Kong Connect Internet ETF reached RMB 582 million.

From a capital-flow perspective, there is no letup in Southbound funds’ efforts to allocate to Hong Kong’s tech sector. As of April 2, the cumulative net purchases by Southbound funds this year had already reached HKD 228.080 billion. Among them, net purchases in the information technology industry exceeded HKD 90 billion, ranking first among all industries. Goldman Sachs expects that the full-year net purchases by Southbound funds in 2026 may reach as much as USD 200 billion. Goldman Sachs further noted that Hong Kong interbank lending rates have fallen to a seven-month low, trading volumes in Hong Kong stocks have increased, and the real estate market has shown signs of recovery—each indicates that international capital is flowing back to Hong Kong.

CITIC Jianchun Securities believes that April may be the key period for Hong Kong stocks to shift from “buying based on sentiment” to “buying based on performance.” Since October 2025, Southbound funds have increased their holdings of Xiaomi Group by more than 1.5 billion shares, increased their holdings of Meituan by more than 270 million shares, and increased their holdings of Alibaba by more than 100 million shares. Tencent Holdings received an increase of more than 75 million shares. Southbound funds’ continued adding to positions against the trend may help build a solid bottom support for Hong Kong’s tech sector.

According to publicly available information, the Huaxia (520910) Hong Kong Connect Internet ETF tracks the CSI Hong Kong Connect Internet Index, precisely covering core internet areas such as e-commerce platforms, content ecosystems, social media, and software services, among others. Its share of AI applications is relatively high, aligning with the industry deepening path in which AI-driven internet business model upgrades are carried out. In the constituent stocks, there are Hong Kong internet leaders such as Alibaba, Tencent Holdings, Xiaomi Group, Meituan, and Kuaishou, which are expected to continue benefiting in the subsequent acceleration of AI penetration.

21st Century Business Herald

(Editor-in-charge: Zhang Xiaobo)

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