Group 1 - The Hang Seng Internet Technology Index has strengthened, rising by 2.9% as of the report, with an intraday increase exceeding 3.3% [1] - The Hang Seng Internet ETF (159688) has also seen gains, up 3.15% at the time of reporting, with a peak increase of 3.55% and a turnover rate exceeding 35% [1] - Key component stocks include Kingsoft Cloud, which rose over 13%, and Alibaba-W, which increased by more than 5% [1] Group 2 - According to Guosen Securities, Alibaba's revenue for the first quarter of the fiscal year 2026 is projected to be 247.8 billion yuan, reflecting a year-on-year growth of 2% [1] - The company is expected to face short-term pressure on profits due to increased investment in instant retail, but this strategy is anticipated to enhance user engagement and purchase frequency in the long term [1] - Revenue forecasts for Alibaba from FY2026 to FY2028 are 1,062.3 billion yuan, 1,149.0 billion yuan, and 1,217.4 billion yuan, respectively, with adjusted net profit estimates of 138.8 billion yuan, 171.8 billion yuan, and 195.4 billion yuan for the same period [1] Group 3 - Huatai Securities notes that the Hong Kong stock market has experienced a rebound over the past two months, approaching the high point of the first quarter of 2025 [2] - The market may lack a strong basis for significant short-term upward movement due to factors such as interest rates, risk premiums, and earnings, alongside uncertainties in the global economy and geopolitical environment in the third quarter [2] - Despite increasing attention from domestic and foreign investors towards Chinese assets and the expansion of the Hong Kong stock market, the risk of a significant market downturn is considered relatively controllable, highlighting the importance of sector rotation [2]

Group 1 - The Hong Kong stock market experienced a collective rise, with the Hang Seng Index increasing by 1.18% and the Hang Seng Tech Index rising by 1.85% as of May 14 [1] - The Hang Seng Tech ETF (513580) saw a gain of 1.69%, with a year-to-date increase of 16.75% from January 2 to May 13, while the Hang Seng Internet ETF (159688) rose by 1.33% with a year-to-date increase of 14.67% during the same period [1] Group 2 - Recent positive developments in the tech sector include the announcement from the State Council Tariff Commission regarding adjustments to tariffs on imports from the U.S., effective from May 14, 2025 [2] - JD Group reported a 52.73% year-on-year increase in net profit for Q1 2025, with attention on the GMV scale as the 618 shopping festival approaches, projecting a GMV of approximately 4.5 trillion yuan for 2024 [2] - The market for AI agents is expanding, with major companies like Microsoft, Google, Salesforce, Zoom, Baidu, Alibaba, Tencent, and ByteDance increasing their investments in AI commercialization [2] Group 3 - Open Source Securities noted that the Hang Seng Tech Index is currently outperforming the U.S. tech giants, despite concerns about potential negative impacts from U.S. market downturns [3] - China’s stock assets have shown a decrease in correlation with U.S. stocks and bonds over the past year, suggesting a more favorable investment environment for domestic stocks [3] - CICC's report indicates that domestic internet company valuations have improved due to the AI wave, while external tariff changes have led to a valuation pullback, suggesting that the domestic internet sector remains in a reasonable low valuation range with a safety margin [3]