Xin Lang Ji Jin·2025-11-07 05:27Core Viewpoint - The Hong Kong stock market, particularly the technology sector, is experiencing a downturn influenced by overseas market conditions, with significant declines in major tech stocks like Alibaba and Tencent [1][3]. Group 1: Market Performance - On November 7, the Hang Seng Technology Index fell by 2% in the first half of the trading day, with leading tech stocks such as Alibaba and Tencent both dropping over 2% [1]. - Since reaching a peak at the end of September, the Hong Kong tech sector has undergone a correction, with the CSI Hong Kong Internet Index down 10% in October [3]. - The Hong Kong Internet ETF (513770) saw a price drop of 2.55% but experienced a premium trading rate of 0.24%, indicating active buying interest [1][4]. Group 2: Valuation Metrics - As of the end of October, the CSI Hong Kong Internet Index had a price-to-earnings (PE) ratio of 24.44, which is significantly lower than the NASDAQ 100 (36.95) and the ChiNext Index (41.11) [3][5]. - The current valuation of the Hong Kong Internet sector is at a low historical percentile, suggesting potential for upward movement [3][5]. Group 3: Investment Trends - Recent data shows a net inflow of 137 million yuan into the Hong Kong Internet ETF, with a total of 641 million yuan in net inflows over the past five days [4]. - The core narrative of the Hong Kong Internet sector is shifting from user growth and business models to new growth opportunities driven by AI [5]. - The Hong Kong Internet ETF has a total size exceeding 11.8 billion yuan, with an average daily trading volume of over 600 million yuan, indicating strong liquidity [6]. Group 4: Major Holdings - The top three holdings in the Hong Kong Internet ETF are Alibaba (19.22%), Tencent (16.46%), and Xiaomi (10.41%), collectively representing over 73% of the fund [6][7]. - The ETF is positioned to benefit from the ongoing AI wave, which is expected to be a key driver of market performance through 2026 [5].