On October 9, Hong Kong stocks staged a sharp reversal rally, with the Hang Seng Tech Index closing up 3%. Internet leaders advanced across the board, led by Xiaomi Group-W (HKEX: 01810) surging 9.72%, while Tencent Holdings (HKEX: 00700), Meituan-W, and NetEase each rose more than 3%. Alibaba-W (HKEX: 09988) gained over 2%. The Hang Seng Hong Kong Internet ETF Huabao (513770) rose on heavy volume, with its underlying index climbing 3.67%.

Multiple internet leaders released positive fundamental signals. Xiaomi Group-W (HKEX: 01810) officially announced that in the first month since launch, its Pengcheng series surpassed 70,000 locked orders, directly driving the company's overall vehicle deliveries in September to exceed 40,000 units for the first time. Galaxy Securities noted that Xiaomi Group-W (HKEX: 01810) achieved counter-cyclical sales growth in the second quarter, with losses narrowing quarter-on-quarter. The extended-range new models Pengcheng N70/N90 hold strong potential and are expected to further boost the company's automotive business. Combined with impressive AI model performance and notable progress in robotics capabilities, these developments are expected to bring new growth momentum.

In addition, Alibaba-W (HKEX: 09988) provided its latest quarterly business guidance, indicating continued accelerated growth in Alibaba Cloud and better-than-expected profitability in its core e-commerce business. CICC estimates that Alibaba-W (HKEX: 09988) will see cloud computing revenue grow 53% year-on-year in the second quarter of fiscal year 2027, with cloud revenue still maintaining year-on-year growth of over 50% in fiscal year 2028. CICC also expects cloud business EBITA margin to reach 13.3% this quarter, above market expectations.

Affected by overseas liquidity disruptions, the Hong Kong internet sector has recently pulled back notably. As of October 8, the CSI Hong Kong Stock Connect Internet Index had a price-to-earnings ratio (TTM) of only 19.66 times, sitting at the 6.69th percentile over the past 10 years, highlighting attractive medium-to-long-term allocation value. With the continued development of AI and accelerated commercialization, the Hong Kong internet sector is expected to usher in strategic investment opportunities driven by both earnings and valuation recovery.

The Hang Seng Hong Kong Internet ETF Huabao (513770) passively tracks the CSI Hong Kong Stock Connect Internet Index, with heavy positions in internet leaders. Its top two holdings, Tencent Holdings (HKEX: 00700) and Alibaba-W (HKEX: 09988), together account for over 30% weight, while the top ten constituent stocks collectively represent over 80%, demonstrating significant leader advantages. The ETF supports intraday T+0 trading with good liquidity. Off-exchange investors may consider the feeder funds (Class A 017125, Class C 017126).

Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should invest rationally based on their own financial conditions and risk tolerance, paying close attention to position and risk management. Data source: Shanghai and Shenzhen Stock Exchanges, Wind, etc. Institutional views source: Galaxy Securities 260825 "Xiaomi Group-W (1810.HK): Automotive Business Losses Narrow, AI Layout Deepens"; CICC 261009 "Maintain Alibaba-W (09988) 'Outperform Industry' Rating, Expect Second Fiscal Quarter Non-GAAP Net Profit Attributable to Parent to Exceed Expectations." ETF fee-related notes: When investors subscribe or redeem fund shares, subscription and redemption agents may charge a commission of no more than 0.5%, which includes fees charged by stock exchanges, registrars, and other related parties. Feeder fund fee-related notes: Huabao CSI Hong Kong Stock Connect Internet ETF Initiating Feeder Fund (Class A) subscription fee (front-end) is 1,000 yuan per transaction for subscription amounts above 2 million yuan, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1% for amounts below 1 million yuan. 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. Huabao CSI Hong Kong Stock Connect Internet ETF Initiating Feeder Fund (Class C) does not charge subscription fees, has 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, and charges a sales service fee of 0.3%. Risk disclosure: The Hang Seng Hong Kong Internet ETF Huabao and its feeder funds passively track the CSI Hong Kong Stock Connect Internet Index. The index base date is December 30, 2016, and it was launched on January 11, 2021. The CSI Hong Kong Stock Connect Internet Index's returns over the past five complete calendar years were: 2025: 27.02%; 2024: 23.04%; 2023: -24.74%; 2022: -23.01%; 2021: -36.61%. The volatility over the past five complete calendar years was: 2025: 33.60%; 2024: 43.49%; 2023: 32.09%; 2022: 49.01%; 2021: 38.72%. The index constituent composition is adjusted from time to time according to the index compilation rules, and its back-tested historical performance does not predict the index's future performance. The index constituent stocks mentioned herein are for illustrative purposes only. Individual stock descriptions do not constitute investment advice of any form and do not represent the holdings or trading activities of any fund managed by the manager. The risk rating of the fund as assessed by the fund manager is R4-medium-to-high risk, suitable for investors with aggressive risk profiles (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 statements) is for reference only, and investors are responsible for their own investment decisions. Additionally, any opinions, analyses, and forecasts in this article do not constitute investment advice of any form to readers, nor shall they bear any responsibility for direct or indirect losses incurred from the use of this content. The performance of other funds managed by the fund manager does not guarantee the performance of the fund. Past performance of the fund does not represent its future performance. Fund investment involves risks, and caution is required. MACD golden cross signals have formed, and these stocks are performing well!