Tencent Holdings' Q2 report released yesterday showed revenue of RMB 184.5 billion, up 15% YoY, and operating profit of RMB 69.25 billion, up 18% YoY. Notably, AI drove significant growth in Tencent's core businesses: gaming revenue grew 22% YoY, while marketing services maintained rapid growth boosted by large model technology upgrades, with revenue up 20% YoY to RMB 35.76 billion. Fintech and business services revenue increased 10% YoY to RMB 55.54 billion.

As the earnings season for Hong Kong-listed tech giants begins with Tencent's better-than-expected results, related investment products may attract attention. The Hang Seng Tech Index comprises 30 largest-cap stocks highly related to tech themes in the Hong Kong market, covering major firms like Tencent, Xiaomi, Meituan, and Alibaba. The index's current rolling P/E ratio is below the 25th percentile since its 2020 launch.

Caitong Securities notes that over the past two years, the Hang Seng Tech Index has delivered significant alpha both in China and globally. While market expectations for core internet stocks' earnings are now relatively full, the focus during earnings season will shift to next fiscal year's guidance. The index still has high probability of continued alpha in the coming year.

Wind data shows that as of yesterday, E Fund Hang Seng Tech ETF (513010), which tracks the index, saw net inflows exceeding RMB 1.5 billion in the past month, with total AUM surpassing RMB 14 billion - helping investors conveniently access Hong Kong's leading tech stocks.