Xin Lang Cai Jing·2026-03-04 03:00Core Viewpoint - The Hong Kong stock market is experiencing a significant adjustment, particularly in the technology sector, driven by concerns over high expenditures, competition from new AI players, and liquidity pressures due to changing Federal Reserve interest rate expectations [3][11]. Market Performance - On March 4, the Hong Kong stock market opened lower, with the Hang Seng Index and Hang Seng Tech Index both dropping over 1%. The Hong Kong Internet ETF (513770) fell by 1.33%, reaching a new low since July 2025. Major internet companies like Alibaba-W, Meituan-W, and Tencent Holdings saw declines of over 3%, nearly 2%, and 0.88%, respectively [1][9]. Investment Trends - Despite the market downturn, southbound capital has been consistently increasing. As of March 3, there were 27 net inflow trading days out of 36 this year, totaling a net inflow of 181.8 billion HKD. Major internet companies have seen significant increases in holdings, with Tencent's market value exceeding 540 billion HKD and Alibaba's over 320 billion HKD [3][11]. Sector Analysis - Analysts suggest that the current deep adjustment in the Hong Kong tech sector is due to three main pressures: concerns over high spending on delivery subsidies and AI initiatives, competition from emerging AI companies, and liquidity pressures from revised Federal Reserve interest rate expectations [3][11]. - Investment opportunities are emerging in the Hong Kong Internet sector as policies supporting AI development are expected to enhance the growth of internet companies [3][11]. ETF Insights - The Hong Kong Internet ETF (513770) and its linked funds are designed to track the CSI Hong Kong Internet Index, with the top ten holdings including major players like Alibaba-W, Tencent Holdings, and Xiaomi Group, collectively accounting for over 76% of the index [4][12]. - For investors looking to reduce volatility while still gaining exposure to technology, the Hong Kong Large Cap 30 ETF (520560) is recommended, combining high-growth tech stocks with stable dividend-paying companies [14].