Sou Hu Cai Jing·2026-03-04 03:21Core Viewpoint - The Hong Kong stock market is experiencing a downturn, particularly in the technology sector, with significant declines in major internet stocks, while southbound capital continues to increase its holdings in these companies [1][2]. Group 1: Market Performance - The Hang Seng Index and the Hang Seng Tech Index both fell over 1% in early trading on March 4, with the Hong Kong Internet ETF (513770) reaching a new low since July 2025 [1]. - Major internet companies like Alibaba-W and Meituan-W saw declines of over 3% and nearly 2%, respectively, while Tencent Holdings fell by 0.88% [1]. Group 2: Investment Trends - Despite the market downturn, southbound capital has shown a net inflow in 27 out of 36 trading days this year, totaling a net inflow of 181.8 billion HKD [2]. - Southbound capital has significantly increased its holdings in major internet companies, with Tencent's market value exceeding 540 billion HKD and Alibaba's exceeding 320 billion HKD [2]. Group 3: Sector Analysis - Concerns about high expenditures on delivery subsidies and AI initiatives are causing competitive pressures among companies [2]. - The emergence of new AI players like Zhipu and MiniMax is raising doubts about the technological advantages of established internet giants [2]. - Analysts suggest that the current market correction presents a buying opportunity in the Hong Kong internet sector, supported by favorable policies and liquidity conditions [2][3]. Group 4: Future Outlook - Analysts from various firms, including Industrial Securities, believe that the downturn in the Hong Kong tech sector may present investment opportunities, particularly as AI support from the government continues to strengthen [2][3]. - The Hong Kong Internet ETF (513770) and its associated funds are positioned to benefit from the growth of AI and the unique advantages of Hong Kong internet companies [3].