Xin Lang Ji Jin·2025-10-20 06:11Core Viewpoint - The Hong Kong stock market is experiencing a rebound, with significant gains in major tech stocks, driven by positive economic data and easing trade tensions [1][3]. Group 1: Market Performance - The Hang Seng Index rose over 2%, while the Hang Seng Tech Index increased by more than 3% [1]. - Major tech stocks such as Alibaba-W, Tencent Holdings, Bilibili-W, Meituan-W, and Xiaomi Group-W saw gains of over 4%, 3%, and 2% respectively [1][2]. Group 2: Fund Flows and Investor Sentiment - Southbound capital saw a net inflow of 450.89 billion HKD last week, the highest in five weeks, indicating strong interest in the Hong Kong stock market [4]. - Year-to-date, net inflows from southbound capital have exceeded 1.1 trillion HKD, reflecting a positive sentiment towards Hong Kong stocks [4]. Group 3: Economic Indicators - China's GDP grew by 5.2% year-on-year in the first three quarters, with the National Bureau of Statistics highlighting stable economic performance and progress in high-quality development [3]. - Easing trade tensions, marked by a video call between U.S. and Chinese trade leaders, has contributed to a more favorable market environment [3]. Group 4: ETF and Sector Performance - The Hong Kong Internet ETF (513770) opened higher, with a price increase of 2.25% and a trading volume exceeding 400 million HKD [2][4]. - The ETF tracks the CSI Hong Kong Internet Index, with major holdings including Alibaba-W, Tencent Holdings, and Xiaomi Group-W, which together account for over 46% of the ETF's weight [4][5]. Group 5: Valuation Metrics - The CSI Hong Kong Internet Index has a current P/E ratio of 26.69, which is lower than both U.S. and A-share tech valuations, indicating potential for growth [7]. - The index has shown significant resilience, outperforming the Hang Seng Tech Index in terms of elasticity this year, particularly under the influence of AI concepts [6][7].