Cloud Product Price Increases Landing + Capital Reflow Creates Resonance, Hong Kong Stock Tech Asset Allocation Value Becomes Prominent

As of 2:30 PM on March 18, the Hong Kong stock technology sector performed well amid multiple positive catalysts. The Hang Seng Tech Index surged to 0.87% in the afternoon, supported by the implementation of cloud product price hikes and capital inflows. The sector is experiencing a dual opportunity for valuation recovery and fundamental improvement.

In individual stocks, Kingsoft Cloud (03896.HK) rose over 15%, Kingdee International (00268.HK) increased more than 5%, while Mafengwo (02556.HK), Eastern Selection (01797.HK), Bilibili-W (09626.HK), and Alibaba-W (09988.HK) gained over 3%. The Hang Seng Tech ETF E Fund (513010) and Hong Kong Stock Connect Internet ETF E Fund (513040) are actively traded, making them excellent tools for capturing opportunities in the Hong Kong tech sector.

The cloud product price hikes serve as a core catalyst for the sector, with leading internet companies continuously improving their commercialization capabilities. Alibaba Cloud announced price increases for AI computing power and storage products, with the highest increases reaching 34%. Specifically, computing power card products rose by 5%-34%, and file storage products (CPFS) increased by about 30%. This round of price hikes reflects the rapid growth in token call demand driven by AI applications and the still-tight supply and demand for computing resources. Alibaba Cloud’s MaaS business achieved its highest growth rate from January to March this year and continues to allocate resources toward token services, indicating that AI demand is accelerating toward cloud revenue. Rising cloud product prices suggest that internet giants are better positioned to monetize during the AI cycle, which could lead to a revaluation of the sector’s profitability expectations.

Currently, the Hong Kong tech sector is experiencing a confluence of capital inflows, valuation support, and improving fundamentals, highlighting its investment value.

From a capital perspective, southbound funds have recently shown a clear rebound, with a net purchase of HKD 37.21 billion on March 9, hitting a record high. The short-term shift from significant net outflows to large net inflows indicates recognition of the sector’s current valuation appeal, with technology stocks being the main beneficiaries.

From a valuation standpoint, the Hang Seng Tech Index’s current PE (TTM) is about 21x, placing it in the 14th percentile over the past decade. Compared to U.S. tech stocks, it remains significantly undervalued. Previous concerns about stagflation, high interest rates, and AI trading congestion have already been priced in, leading to a better risk-reward profile.

From a fundamental perspective, the AI industry is transitioning from model capability-driven growth to application and commercialization validation. Cloud revenue, advertising, and e-commerce conversion efficiencies are expected to benefit continuously from AI empowerment. Meanwhile, platform-based internet companies possess data, traffic, and ecosystem advantages, occupying key entry points in agent and application layers. The long-term competitive landscape remains fundamentally unchanged.

The core logic is that the Hong Kong tech sector is currently in a phase of gradually easing macro pressures, ongoing industry catalysts, and accelerating capital inflows. With valuations at multi-year lows, the sector is more sensitive to marginal positive news. Cloud price hikes and AI demand releases are likely to serve as important catalysts for sentiment and earnings expectations recovery. The sector’s rebound potential is worth期待。

To seize investment opportunities in the Hong Kong tech sector, focus on two key ETFs: Hang Seng Tech ETF E Fund (513010), which provides a one-click exposure to core Hong Kong tech assets, covering AI, platform economy, and cloud computing leaders, offering higher flexibility and suitable for main tech trend investments; and Hong Kong Stock Connect Internet ETF E Fund (513040), with approximately HKD 9.1 billion in assets and good liquidity, focusing on internet platforms, cloud services, e-commerce, and advertising—areas with stronger profit resilience and fundamental support during AI commercialization.