On August 10, Hong Kong's three major stock indexes collectively strengthened, with most internet leaders rebounding. Alibaba (BABA-W) and Xiaomi Group (1810.HK) rose over 2%, Meituan (3690.HK) gained over 1%, and Tencent Holdings (0700.HK) and Kuaishou (1024.HK) followed with gains. The Huabao Hong Kong Stock Internet ETF (513770), which heavily invests in these internet leaders, opened higher and trended upward, with intraday gains reaching 1.8% and closing over 1%.

On the news front, amid global large language models (LLMs) competing to enter the low-price segment, Alibaba plans to charge fees for large-scale users of its next-generation Qwen open-source AI model. This model performed strongly in third-party rankings released in August, securing the 5th position globally. According to OpenRouter data, domestic LLMs have consistently occupied the top five positions in call volume for 14 consecutive weeks. As the capabilities of domestic LLMs approach the first tier of global mainstream models, domestic AI applications and agents are expected to enter a phase of flourishing diversity. The inflection point for commercializing the value of Chinese LLMs has arrived.

CITIC Securities believes that the technology sector in August is likely to enter a waiting period for new narratives, with technology hardware and software entering a rebalancing phase. They suggest focusing on directions with favorable positioning, valuations at low levels, and those that have been unfairly sold off. The enhancement of open-source model capabilities is driving "intelligent parity" and "token parity," with initial attention on leading internet companies and cloud vendors with low valuations and rich AI application ecosystems.

Additionally, the AI narrative for Hong Kong stock internet leaders is facing a performance test, with Tencent Holdings set to announce its second-quarter 2026 results on Wednesday, August 12. China Galaxy Securities stated that with the peak of interim report disclosures, the pricing logic for Hong Kong stocks is shifting from sentiment recovery and capital rotation to fundamental verification and structural rebalancing. The global AI pricing logic is trending from hardware infrastructure to application monetization, and expectations for the commercialization of domestic LLMs are heating up. They recommend focusing on AI applications, leading LLM companies, and internet platforms with traffic entry points.

From a long-term perspective, Western Securities noted that the center of gravity of the global AI narrative is shifting from North America to China and from hardware to applications. Hong Kong stock internet platforms with traffic entry points are worth special attention. Moreover, Hong Kong stock internet companies, from the perspectives of valuation levels, index positions, and capital attractiveness, may represent a global value trap, potentially absorbing funds flowing out of AI hardware. They hold a strategic bullish view on the Hong Kong stock internet sector.

Attention is also on the value reassessment of Hong Kong stock internet leaders driven by the AI transformation. The Huabao Hong Kong Stock Internet ETF (513770) and its linked funds (A-share 017125; C-share 017126) passively track the CSI Hong Kong Stock Connect Internet Index. Its top ten heavyweights include Alibaba (BABA-W) and Tencent Holdings among other tech giants and AI application companies across various fields, offering significant leadership advantages. The ETF supports intraday T+0 trading and has good liquidity.

For investors bullish on Hong Kong tech but seeking lower volatility, the first product of its kind in the market, the Hong Kong Large Cap 30 ETF Huabao (520560), features a "tech + dividends" barbell strategy. Its heavy positions include both high-elasticity tech stocks like Alibaba and stable, high-dividend sectors like banks and insurance, making it an ideal tool for long-term Hong Kong stock allocation. Reminder: Market volatility may be high recently, and short-term gains or losses do not predict future performance. Investors must make rational investment decisions based on their own capital conditions and risk tolerance, paying close attention to position and risk management. Data sources include the Shanghai and Shenzhen stock exchanges. Institutional views are sourced from: CITIC Securities, August 5, 2026, "AI Enters Midfield Time: Hardware Breeds Contract, Cloud and Application Appeal Rise"; China Galaxy Securities, August 10, 2026, "Interim Reporting Verification Period, Focus on Hong Kong Stocks' New Core"; Western Securities, August 9, 2026, "AI's 'Windows Moment', Strategically Bullish on Hong Kong Stock Internet." ETF fee note: When investors subscribe for or redeem fund shares, the subscription and redemption agent may charge a commission of up to 0.5%, which includes fees charged by the stock exchange, registration institution, etc. Linked fund fee note: For Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (A-share), the subscription rate (front-end) is RMB 1,000 per transaction for amounts over RMB 2 million, 0.6% for amounts between RMB 1 million (inclusive) and RMB 2 million, and 1% for amounts under RMB 1 million; the redemption rate is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days (inclusive) or more; no sales service fee is charged. For Huabao CSI Hong Kong Stock Connect Internet ETF Feeder Fund (C-share), no subscription fee is charged, the redemption rate is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days (inclusive) or more; the sales service fee is 0.3%. Risk warning: The Huabao Hong Kong Stock Internet ETF (513770) 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 published on January 11, 2021. The CSI Hong Kong Stock Connect Internet Index's performance over the last five complete years: 2025, 27.02%; 2024, 23.04%; 2023, -24.74%; 2022, -23.01%; 2021, -36.61%. The volatility over the last five complete years: 2025, 33.60%; 2024, 43.49%; 2023, 32.09%; 2022, 49.01%; 2021, 38.72%. The index's constituent stocks are adjusted according to the index compilation rules. Historical back-testing performance does not predict future index performance. The index constituent stocks mentioned in this article are for display purposes only. Descriptions of individual stocks do not constitute investment advice of any kind and do not represent the holdings or trading activities of any fund managed by the fund manager. The fund manager assesses the risk level of this fund as R4-medium-high risk, suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must take responsibility for their own independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any form to readers, nor shall responsibility be held for any direct or indirect losses resulting from the use of this content. The performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Past performance does not represent future performance. Fund investments carry risks, and fund investments must be made with caution. MACD golden cross signal forms, these stocks are showing strong gains!