Institutions state that the Hong Kong stock market is still in a catch-up growth window; the Huaxia (520910) Stock Connect Internet ETF, which has the lowest fee tier among similar products, has opened up layout channels.

On July 22, the Hong Kong stock market closed at midday with the Hang Seng Index down 0.83% and the Hang Seng Tech Index down 2.11%. On the trading floor, tech and internet stocks declined; NetEase fell over 6%, Tencent Holdings dropped nearly 6%, while Meituan and Xiaomi Group both fell more than 2%. The midday trading of Hong Kong-listed internet stocks continued to experience volatile pullbacks. The Huaxia Stock Connect Internet ETF (520910), which offers one of the lowest fee tiers among similar products, is currently down nearly 4%. As of July 21, the assets under management for the Huaxia Stock Connect Internet ETF (520910) reached 503 million yuan.

Soochow Securities believes that Hong Kong stocks are still in a catch-up rally window, but the sustainability and strength of the rebound involve many variables, placing it at a critical observation juncture. Key drivers for future Hong Kong stock performance include: the pace of the US stock AI tech narrative; expectations for Federal Reserve monetary policy this year; valuation and domestic catalysts, which still await the implementation of domestic policy stimulus or new AI industry narratives to provide incremental momentum.

Public records show that the Huaxia Stock Connect Internet ETF (520910) tracks the CSI Hong Kong Stock Connect Internet Index, precisely covering core internet sectors such as e-commerce platforms, content ecosystems, social media, and software services. It has a high exposure to AI applications, aligning with the industrial deepening path where AI drives the upgrade of internet business models. Its constituents include leading Hong Kong-listed internet companies such as Alibaba, Tencent Holdings, Meituan, Xiaomi Group, and Kuaishou, which are expected to continue benefiting from the subsequent accelerated penetration of AI.