In the first quarter, southbound funds had a cumulative net inflow of over HKD 220 billion. The Hong Kong Stock Connect Internet ETF Huaxia (520910), which offers the lowest fee tier for similar products, is currently up nearly 1.5%.

April 1, Hong Kong stocks’ Hang Seng Index opened higher, up 2.3%, the state-owned enterprises index rose 2.07%, and the Tech Index opened up 2.75%. On the trading board, technology stocks and chip stocks rose across the board. After opening strongly in the morning, Hong Kong stocks’ internet sector remained strong; the Hong Kong Connect internet ETF 华夏 (520910), which is at the lowest fee-rate tier for similar products, is up nearly 1.5% at present. All its holdings are green across the board, including Gainian Technology, Ping An Good Doctor, iDreamsky, Bilibili, Kingsoft Cloud, Tencent Holdings, and others, all up more than 3%. As of March 31, the size of the Hong Kong Connect internet ETF 华夏 (520910) reached RMB 584 million.

On March 31, Southbound Trading net bought approximately HK$703 million. Since the beginning of this year, Southbound Trading has continued to add to its holdings in the Hong Kong stock market, making it an important source of incremental capital for the Hong Kong stock market. According to Wind data, as of March 31, in the first quarter Southbound Trading’s cumulative net inflow exceeded HK$220 billion.

On the news front, on March 30, Alibaba released Qwen3.5-Omni, a new-generation all-modal large model, and achieved SOTA (best performance) across 215 tasks including audio/video understanding, recognition, and interaction, surpassing Gemini-3.1 Pro to become one of the world’s strongest all-modal large models currently. At present, Alibaba Cloud’s Bailian has launched three types of APIs—Plus, Flash, and Light—for Qwen3.5-Omni, which can be widely applied in industries such as short-video/live-streaming platforms, games, and independent media.

Hua Yuan Securities believes that the platform advantages of leading enterprises such as Tencent Holdings, Alibaba, Meituan, Kuaishou, Tencent Music, NetEase Cloud Music, Bilibili, and others are reflected in the resilience of their fundamentals, and recommends continuing to pay attention to the strategic value of leading companies’ proactive adjustments to their internal organizational structures. At the same time, the development and investment in AI underlying technologies by leading internet companies, as well as the launch and execution of AI application products, remain the core of industrial development and market trading. We recommend continuing to attach importance to the strategic value of proactive internal organizational-structure adjustments by leading companies, and also the narrative and execution progress over the medium to long term in directions such as AI.

Public information shows that the Hong Kong Connect internet ETF 华夏 (520910) tracks the CSI Hong Kong Connect Internet Index, accurately covering core internet areas such as e-commerce platforms, content ecosystems, social media, and software services. Its proportion of AI applications is relatively high, which aligns with the industry deepening path of upgrading internet business models driven by AI. Among its constituent stocks are Hong Kong internet leaders such as Alibaba, Tencent Holdings, Xiaomi Group, Meituan, and Kuaishou, which are expected to continue to benefit in subsequent phases of accelerated AI penetration.

21st Century Business Herald