Earnings report is out, Meituan rises after earnings! The billion-dollar Hong Kong-listed Internet ETF Huabao (513770) strengthens during the session, the internal competition has come to an end, and the turning point has already appeared?

On March 27, the Hong Kong stock market strengthened during trading, with the Hong Kong Stock AI Core Tool — Hong Kong Internet ETF Huabao (513770) showing a current price increase of 0.93%. Major internet companies surged, with Xiaomi Group-W rising nearly 3%, Meituan-W increasing over 1% after earnings, and Alibaba-W and Tencent Holdings following suit.

Following Tencent, Alibaba, and Xiaomi, Meituan-W released its latest financial report yesterday, with the pressure from the food delivery war on performance finally coming to a conclusion. Meituan stated its firm opposition to internal competition and expects a significant improvement in the quarterly loss of its food delivery business compared to the previous quarter; additionally, Meituan revealed its strong commitment to AI and internationalization, upgrading Meituan into an industry-leading AI-driven application.

Recently, the food delivery market has undergone a significant turnaround, as the State Administration for Market Regulation forwarded a commentary titled “The Food Delivery War Should Come to an End,” which the market generally interpreted as — the regulatory authorities issuing a clear stop signal against ‘internal competition’ price wars, bringing expectations for performance recovery among major internet companies.

Feng Chen, the fund manager of the Hong Kong Internet ETF Huabao (513770), pointed out that recent price increases by major model manufacturers and cloud service providers indicate significant upward elasticity in the computing and cloud service prices of leading internet companies amidst changing potential demand; combined with the decline of internal competition, multiple positive factors resonate, suggesting that the fundamentals of Hong Kong internet stocks are likely to see gradual upward adjustments starting from the second quarter, with valuation and positioning ensuring future elasticity.

Looking ahead, Galaxy Securities stated that if a protracted conflict occurs between the U.S. and Iran, the Hong Kong stock market will experience a three-phase evolution: “short-term emotional shock → medium-term fundamental transmission → long-term structural differentiation.” However, the valuation advantage, high dividend characteristics, and support from southbound capital in the Hong Kong market provide it with relative resilience among non-U.S. assets. Public data shows that due to geopolitical situations, capital from the Middle East is rapidly migrating, and Chinese assets are becoming an important option for their reallocation. The low valuation, offshore market, and advantages in the technology sector of Hong Kong stocks are becoming key factors in attracting their investments.

Seizing the opportunity of 2026 as the year of AI commercialization, pay attention to the core tools of AI in Hong Kong stocks. The Hong Kong Internet ETF (513770) and its connected funds (Class A 017125; Class C 017126) passively track the CSI Hong Kong Stock Connect Internet Index, with the top ten weighted stocks including Alibaba-W, Tencent Holdings and other tech giants alongside companies in various AI application fields, showcasing significant leading advantages, with T+0 trading and good liquidity.

Optimistic about Hong Kong technology but hoping to reduce volatility? You can also pay attention to the first of its kind in the entire market — Hong Kong Large Cap 30 ETF (520560), which features a “technology + dividend” barbell strategy, holding stocks that include Alibaba and other high-elasticity tech stocks, while also encompassing banks, insurance, and other stable high-dividend companies, making it an ideal foundational tool for long-term allocation in Hong Kong stocks.

Reminder: Recent market volatility may be significant, and short-term fluctuations do not predict future performance. Investors must rationally invest according to their own financial situation and risk tolerance, with a heightened focus on position and risk management.

Data source: Shanghai and Shenzhen Stock Exchanges, etc.

ETF Fee Related Note: When investors subscribe to or redeem fund shares, the subscription and redemption agency may charge a commission not exceeding 0.5%, which includes related fees charged by the stock exchange, registration agency, etc. Connected Fund Fee Related Note: The subscription fee rate for the Huabao CSI Hong Kong Stock Connect Internet ETF Initiating Connected Fund (Class A) is 1,000 yuan per transaction for amounts over 2 million yuan, 0.6% for amounts between 1 million (inclusive) and 2 million, and 1% for amounts below 1 million; the redemption fee is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more; no sales service fee is charged. The Huabao CSI Hong Kong Stock Connect Internet ETF Initiating Connected Fund (Class C) charges no subscription fee, with a redemption fee of 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more; the sales service fee is 0.3%.

Risk Warning: The Hong Kong Internet ETF passively tracks the CSI Hong Kong Stock Connect Internet Index, with a base date of December 30, 2016, and was published on January 11, 2021. The composition of the index constituents is adjusted in accordance with the index compilation rules in a timely manner. The index constituents mentioned in this article are for display purposes only, and the descriptions of individual stocks do not constitute any form of investment advice, nor do they represent any fund’s holdings or trading directions under the management of the fund manager. The risk level of this fund assessed by the fund manager is R4 - medium-high risk, suitable for aggressive investors (C4) and above. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression, etc.) is for reference only, and investors must be responsible for any investment decisions they make independently. Additionally, any opinions, analyses, and forecasts in this article do not constitute any form of investment advice to readers, nor do they bear any responsibility for any direct or indirect losses arising from the use of this article’s content. The performance of other funds managed by the fund manager does not guarantee the performance of the fund, past performance does not represent future performance, and fund investment involves risk, so caution is advised in fund investment.

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