Xin Lang Ji Jin·2025-08-28 02:35Core Viewpoint - The Hong Kong stock market is experiencing a downturn, particularly in the tech sector, influenced by shrinking profits and competitive pricing wars among major internet companies [1][5]. Group 1: Company Performance - Meituan reported a 11.7% year-on-year revenue growth to 91.8 billion yuan for Q2, but its adjusted net profit fell by 89% to 1.493 billion yuan due to the "takeout subsidy war" [1]. - Alibaba's stock dropped over 3% ahead of its earnings report, while Tencent, Kuaishou, and others showed minor declines, with Xiaomi and Bilibili seeing slight gains [1]. - The Hong Kong Internet ETF (513770) saw a 1% drop in price, indicating a potential buying interest as the premium rate reached 0.58% [1]. Group 2: Market Trends - Since June, the Hong Kong stock market has underperformed compared to the A-share market, despite an increase in capital inflow, with the Hong Kong Internet ETF attracting a net inflow of 872 million yuan over the past 10 days [3]. - The liquidity tightening and the price war among major internet companies are identified as primary factors suppressing the performance of the Hong Kong tech sector [5]. - The expectation of a rate cut by the Federal Reserve in September may signal an approaching liquidity turning point for the Hong Kong market [5]. Group 3: AI Sector Focus - The AI sector in Hong Kong is gaining attention, with local chip support and a shift towards looser overseas liquidity expected to boost AI market expansion [6]. - The Hong Kong Internet ETF is positioned as a core investment in the AI sector, with the fund manager highlighting the potential for internet leaders to play a significant role in the AI era by enhancing productivity and profitability [6]. - The China Securities Hong Kong Internet Index has shown a cumulative increase of over 35% from the beginning of the year to the end of July, outperforming the Hang Seng Tech Index [6].