Xin Lang Ji Jin·2025-09-01 11:58Core Viewpoint - The Hong Kong stock market is showing signs of a rally in AI-related stocks, particularly driven by Alibaba's strong earnings report and its commitment to invest significantly in AI over the next three years [1][4]. Group 1: Market Performance - The Hong Kong Internet ETF (513770) opened with a gap up, rising over 3% at one point and closing up 1.7%, returning above all moving averages [1]. - Alibaba's stock surged over 18% following its earnings report, while Xiaomi Group and Tencent Holdings also saw gains of over 2% and 1% respectively [1]. - The Hong Kong Internet ETF has seen a net inflow of 1.479 billion yuan over the past ten days, with its latest fund size surpassing 9 billion yuan, marking a historical high [1][4]. Group 2: Company Insights - Alibaba reported a 26% increase in cloud revenue, the highest growth in three years, and reaffirmed its plan to invest 380 billion yuan in AI capital expenditures over the next three years [1][7]. - The top holdings in the Hong Kong Internet ETF include Xiaomi Group, Tencent Holdings, Alibaba, and Meituan, which collectively account for over 54.74% of the fund's weight [7][8]. Group 3: Valuation and Comparison - The Hang Seng Index's price-to-earnings (PE) ratio is currently at 21.23, which is low compared to its historical average of 19.23% over the past five years [4]. - The PE ratio for the index tracked by the Hong Kong Internet ETF is only 15.08%, indicating a favorable valuation compared to historical levels [4]. Group 4: Future Outlook - Analysts suggest that the AI narrative is returning to the Hong Kong tech sector, with expectations that AI applications will drive further market momentum [7]. - Historical data indicates a cyclical relationship between the growth of the ChiNext Index and the Hang Seng Tech Index, suggesting that a rally in the latter may be forthcoming [5].