Jin Rong Jie·2025-08-25 02:17Core Viewpoint - The Hong Kong stock market showed strength with the Hang Seng Index and Hang Seng Tech Index both rising over 1%, driven by gains in major tech stocks like Kuaishou and Alibaba, indicating a positive sentiment in the market [1]. Market Performance - The Hong Kong Internet ETF (513770) opened strongly, with a jump of over 2% at one point, currently up 1.95% [1]. - The ETF has seen a net inflow of 448 million yuan over the past five days, bringing its total assets to 8.289 billion yuan, a record high [5]. - The cumulative increase of the China Securities Hong Kong Internet Index exceeded 35% from the beginning of the year to the end of July, outperforming the Hang Seng Tech Index [7]. Federal Reserve Impact - Federal Reserve Chairman Jerome Powell's recent comments suggest a potential shift towards interest rate cuts, with a significant probability of a 25 basis point cut in September [2][3]. - Analysts believe that if the Fed enters a loosening cycle, the Hong Kong stock market, particularly the tech sector, could benefit significantly [3]. Sector Analysis - The Hong Kong tech sector is experiencing a dual opportunity of "valuation recovery + earnings realization," with a notable decrease in sector crowding compared to earlier in the year [3]. - The current price-to-earnings ratio of the sector is considered to be at a historically low level, while return on equity (ROE) is showing signs of stabilization and improvement [3]. Upcoming Earnings - Major internet companies such as Alibaba and Meituan are set to report their second-quarter earnings this week, which could serve as important catalysts for the market [3]. ETF Holdings - As of the end of the second quarter, the top four holdings in the Hong Kong Internet ETF (513770) are Xiaomi, Tencent, Alibaba, and Meituan, collectively accounting for 54.74% of the fund's total weight [8].