Tencent's Strong Performance Boosts Hong Kong Stock Market to New High!
July 23, Hong Kong three major indices opened high and ended up at new highs, with the Hang Seng Index rising by 1.62% to above 25,500 points. The technology sector led the way, with heavyweight Tencent Holdings performing strongly and its Hong Kong-listed internet ETF (513770) jumping over 3% intraday before closing up 2.65%.
Tencent Holdings, also known as the "King of Hong Kong Stocks," saw its shares surge by 4.9%, reaching a new high in four years and pushing its market value back above HK$50 billion.
Morgan Stanley believes that Tencent's outstanding performance in the Chinese mainland's major internet companies has maintained its prediction of a 11% year-on-year growth in revenue and a 14% year-on-year growth in adjusted operating profit. It maintains a "buy" rating with a target price of HK$631.
Walters Securities points out that the Hong Kong stock market is entering a new stage of re-rating. The improvement in external and internal negative factors has been faster than expected, which may lead to an earlier start to the third wave of market trends in the second half of the year.
Overseas developments include the upward adjustment of China's relative advantages in the next round of tariff negotiations. The combination of a relaxed monetary policy, stable currency expansion, and interest rate adjustments by the US Federal Reserve also provides further downward space for the US dollar index, leading to continued liquidity easing.
Domestically, there are positive changes in domestic policies, including the implementation of "anti-inflation" measures, reduced pressure on internet e-commerce, and changes in housing market policies.
It's worth noting that the Hong Kong technology sector has seen continuous inflows over the past 10 trading days, with a total net inflow of HK$818 million.
According to publicly available data, the Hong Kong internet ETF (513770) and its associated funds (A class 017125, C class 017126) are heavily weighted towards the "ATM" giants, with a combined weight of 61.06% in the top three holdings, making it an attractive investment tool for AI investing.
As of June 30, 2025, the Hong Kong internet ETF (513770) has a daily average trading volume of HK$5.94 billion, with support for T+0 transactions and no restrictions on QDII quota.
Reminder: Market fluctuations may be larger in recent times, and short-term gains or losses do not reflect future performance. Investors should exercise prudence and carefully consider their own financial situation and risk tolerance before making investment decisions, paying close attention to position management and risk control.
Data source: Shanghai Stock Exchange, etc. Note: The composition of the constituent stocks of the CSI Hong Kong Internet Index has been adjusted according to the index's compilation rules from time to time. The historical performance of the index does not predict its future performance.
Risk warning: This ETF passively tracks the CSI Hong Kong Internet Index, which has a base date of December 30, 2016 and was released on January 11, 2021. The composition of the constituent stocks is adjusted according to the index's compilation rules from time to time.
Please note that any information (including but not limited to individual stocks, comments, predictions, tables, indicators, theories, and any other forms of expression) presented in this article is for reference only. Investors are solely responsible for any self-directed investment decisions made based on the contents of this article.