Xin Lang Ji Jin·2025-11-06 11:46Core Viewpoint - The Hong Kong stock market experienced a rebound on November 6, with the Hang Seng Index and Hang Seng Tech Index both rising over 2%, driven primarily by AI-related stocks and leading tech companies [1] Group 1: Market Performance - The Hong Kong Internet ETF (513770) opened high and closed up 1.73%, indicating strong buying sentiment, with a two-day price increase [1][2] - The Hang Seng Tech Index saw a cumulative decline of 8.62% in October, following a period of consolidation since late September [5] - The Hong Kong Internet ETF has seen net inflows of 5.07 billion and 10 billion over the past 5 and 10 days, respectively [3] Group 2: Fundamental Improvements - Expectations for improved fundamentals are driven by cost-cutting measures, reduced competition, and AI applications enhancing corporate profitability [7] - The revenue and profit growth rate for non-financial Chinese companies is projected to reach 13% by 2026, with profit growth expected to outpace revenue growth [7] Group 3: Valuation Advantages - The valuation of Hong Kong tech stocks is competitive globally, with the latest PE ratio for the China Internet Index at 24.44, significantly lower than the NASDAQ 100 (36.95) and ChiNext Index (41.11) [8] - The current PE ratio is at a low historical percentile, providing ample room for upward movement in the Hong Kong tech sector [7][8] Group 4: Capital Inflows - As of November 4, net inflows from southbound capital have exceeded 1.27 trillion HKD this year, marking a historical high and supporting the Hong Kong market [7] - There is an expected additional inflow of 1.54 trillion HKD by the end of 2026, bolstering the "slow bull" market trend [7] Group 5: AI Development - Hong Kong internet companies are categorized into two groups based on AI advancements: those focusing on general large models and cloud computing (e.g., Alibaba, Tencent) and those targeting niche applications (e.g., Meitu, Kuaishou) [10] - The Hong Kong Internet ETF tracks major internet leaders, with Alibaba, Tencent, and Xiaomi being the top three holdings, collectively representing over 73% of the ETF [10]