Sou Hu Cai Jing·2025-12-05 03:09Core Viewpoint - The Hong Kong stock market is showing signs of stabilization, particularly in the AI sector, with the Hong Kong Internet ETF (513770) experiencing positive net inflows and a slight price increase, indicating strong buying interest [1][3]. Group 1: Market Performance - The Hang Seng Index opened lower, down 0.36%, while the Hong Kong Internet ETF (513770) rose by 0.18% during the session, reflecting a positive sentiment among investors [1]. - The Hong Kong Internet ETF (513770) saw a net inflow of 41.91 million yuan yesterday, highlighting investor confidence in the sector [1]. Group 2: Economic Indicators - Weak employment data in the U.S. has led traders to bet on further interest rate cuts by the Federal Reserve, with a 25 basis point cut in December now seen as highly likely [3]. - The probability of a 25 basis point rate cut by the Federal Reserve in December has risen to 87%, which may encourage foreign capital inflows into emerging markets, particularly benefiting Hong Kong tech stocks [3]. Group 3: Valuation Insights - The Hong Kong Internet ETF (513770) tracks the CSI Hong Kong Internet Index, which has a current P/E ratio of 25.13, significantly lower than the 5-year average of 27.84, indicating a valuation gap compared to other indices like the ChiNext and Nasdaq 100 [3][4]. - Major tech companies in Hong Kong are increasing their investments in AI, with current valuations considered reasonable and enhanced by dividends and buybacks [4]. Group 4: ETF Composition - The Hong Kong Internet ETF (513770) has a market size exceeding 10 billion yuan and an average daily trading volume of over 600 million yuan, providing good liquidity for investors [5]. - The top three holdings in the ETF are Alibaba (18.89%), Tencent (17.01%), and Xiaomi (10.05%), which collectively represent over 73% of the fund's assets, focusing on AI cloud computing and applications [4][5].