Hong Kong-listed internet stocks showed strength during the July 6th trading session. At the time of writing, the Hong Kong Internet ETF (513770), which holds significant positions in leading internet companies, saw its on-exchange price rise by 2.38%, aiming for a third consecutive daily gain. Kuaishou-W surged over 4%, TENCENT rose over 3%, while Alibaba-W, Xiaomi Group-W, Meituan-W, and Bilibili-W all gained over 2%.

Key Market Drivers

Tencent's office intelligence agent, WorkBuddy, has become a core driver of incremental business. Analytical data indicates the product boasts a monthly visit count of 8.85 million, 20 million monthly active users, and over 13 million daily active users, with a daily-to-monthly active user ratio maintained between 65% and 75%. This user stickiness is comparable to the overseas office collaboration product Slack. The product iteration pace has accelerated, with 43 updates released cumulatively over three months since launch. Internally, it is positioned as the third blockbuster product following QQ and WeChat. Leveraging an extremely simple deployment process, WeChat ecosystem authorization capabilities, and integration with Tencent's full suite of tools and over thirty external applications, the product has rapidly gained market traction.

Cao Xucheng, the fund manager of the Hong Kong Internet ETF (513770), noted that WorkBuddy's metrics are steadily climbing, indicating a repair in the AI investment thesis for internet companies.

Furthermore, Kuaishou's Kling AI has officially commenced its independent commercialization process. It recently secured nearly $3 billion in financing, with a post-investment valuation potentially reaching $18 billion, setting a record for the largest single funding round for a global multimodal large language model company.

Analyst Perspectives

CICC highlighted the profound significance of Kling AI's financing, suggesting it could reconstruct value across three dimensions: independent pricing of AI assets could lift the parent company's valuation ceiling; it alleviates the group's capital expenditure pressure and optimizes resource allocation; and introducing diverse strategic investors strengthens industrial synergy, aiding Kling in forming a stronger ecosystem in technology, computing power, and entertainment content.

Guojin Securities pointed out that the current global AI industry trend is shifting towards the application layer and platforms with gateway value. Internet platforms, with their billions of user gateways, massive multimodal data assets, and complete ecosystem industrial chains including cloud and payment, are core scenarios for AI commercialization. The market anticipates that major internet companies will successively ramp up efforts in AI commercialization. The path to monetization leveraging their platform scenarios is promising, and the sector's valuation logic may be reassessed based on the value of AI application gateways.

Investment Vehicles for Exposure

Investors focusing on the value reassessment of Hong Kong internet leaders amid the AI transformation can consider the Hong Kong Internet ETF (513770) and its linked funds (Class A: 017125; Class C: 017126). These products passively track the CSI Hong Kong Stock Connect Internet Index. The index's top ten holdings aggregate tech giants like Alibaba-W and TENCENT, along with AI application companies across various sectors, offering significant leading advantages. The ETF also offers intraday T+0 trading with good liquidity.

For those bullish on Hong Kong tech but seeking to reduce volatility, the Hong Kong Large Cap 30 ETF (520560), the first of its kind in the market, employs a "tech + dividend" barbell strategy. Its portfolio includes high-growth tech stocks like Alibaba as well as stable, high-dividend payers from the banking and insurance sectors, making it an ideal long-term core holding for Hong Kong market exposure.

Important Considerations

Investors are reminded that recent market volatility may be elevated, and short-term price movements do not predict future performance. It is crucial to invest rationally based on individual financial circumstances and risk tolerance, paying close attention to position sizing and risk management. Fund fees apply, including potential brokerage commissions not exceeding 0.5% for ETF transactions and specific subscription/redemption fees for linked fund share classes as detailed in fund documents. All investments carry risk, including the potential loss of principal. Past performance of any security or fund is not indicative of future results.