Xin Lang Ji Jin·2025-11-07 11:35Market Overview - The Hong Kong stock market has weakened due to overseas risk aversion, with the Hang Seng Index and Hang Seng Tech Index falling by 0.92% and 1.8% respectively [1] - Major tech stocks such as Alibaba, Xiaomi, Tencent, Meituan, Bilibili, and Kuaishou experienced significant declines, with Kuaishou dropping nearly 6% [1] - Southbound funds actively bought on dips, with a net purchase of HKD 7.523 billion, and Xiaomi received an increase of HKD 989 million [1] ETF Performance - The Hong Kong Internet ETF (513770) opened lower and fell by 2.89%, reaching a six-month low, indicating strong buying interest at lower prices [1] - The ETF saw a net inflow of HKD 137 million yesterday, with a cumulative net inflow of HKD 976 million over the past 10 days [3] Monetary Policy Impact - Fed officials expressed dovish sentiments, revealing internal disagreements on future rate cuts, which negatively impacted market sentiment [5] - The probability of a 25 basis point rate cut by the Fed in December is 70.6% according to CME FedWatch [5] - While short-term volatility is expected due to external liquidity uncertainties, the long-term outlook remains positive as the Fed's easing cycle begins, potentially attracting both southbound and foreign capital into the Hong Kong market [5] AI and Internet Sector Developments - At the World Internet Conference, Alibaba's CEO announced plans to build large-scale AI infrastructure and enhance AI cloud services [6] - The narrative in the internet sector is shifting from user growth to "AI empowerment," indicating a new growth trajectory [6] - The valuation of the Hong Kong internet sector appears attractive, with the CSI Hong Kong Internet Index's latest P/E ratio at 24.68, significantly lower than the NASDAQ 100 (36.25) and ChiNext Index (41.43) [6][7] Investment Opportunities - The Hong Kong market is seen as a valuation bargain globally, with significant room for valuation recovery [5] - The Hong Kong Internet ETF (513770) tracks the CSI Hong Kong Internet Index, which is heavily weighted towards leading internet companies, including Alibaba, Tencent, and Xiaomi, which together account for over 46% of the ETF [8] - The ETF has a current scale exceeding HKD 11.8 billion, with an average daily trading volume of over HKD 600 million, indicating good liquidity [9]