On September 19, the Hang Seng Index opened 0.14% higher, while the Hang Seng Tech Index opened 0.44% higher. The largest A-share ETF tracking the Hang Seng Tech Index (513180) followed the index upward, with top gainers in its holdings including SMIC, Hua Hong Semiconductor, NIO, Lenovo Group, and JD Group.

The Hong Kong stock market overall adjusted yesterday, with the three major indices rising initially before falling. Huaxi Securities stated that expectations of a Fed rate cut had been a key support for the strength of Hong Kong tech stocks. However, as the recently announced rate cut magnitude and the pace of cuts within the year did not significantly exceed expectations, some funds chose to cash in profits, putting pressure on the Hang Seng Tech Index after a brief rise. On the capital flow front, on September 18, southbound funds continued their net buying trend, with a full-day net purchase of HKD 6.288 billion. Meituan and Alibaba received net purchases of HKD 1.412 billion and HKD 1.21 billion, respectively, possibly reflecting continued investor favor for Hong Kong internet stocks.

Zheshang Securities noted that AI applications are leading the way in Hong Kong's internet sector. Recently, Kuaishou's Kling AI launched a new digital human feature, allowing users to generate a 1080p/48FPS digital human video of up to one minute using just a character image and text or audio. Additionally, on September 18, S&P Global announced a strategic partnership with Alibaba Cloud, a technology company under Alibaba Group, to introduce S&P Global Commodities' AI-ready data to China for the first time. This data can seamlessly integrate with Alibaba Cloud's analytics services and AI engine, including the Tongyi Qianwen large language model. Continued progress by major internet companies in related fields is expected to further strengthen the AI narrative of the Hang Seng Tech Index.

Alibaba and Baidu are racing to develop their own chips, with AI igniting a bullish frenzy. The Hang Seng Tech Index is expected to break upward again. Looking ahead, with the Fed restarting rate cuts and southbound funds likely to continue flowing in, the valuation restructuring of the Hang Seng Tech Index is anticipated under the combined catalysis of domestic and foreign capital resonance and the return of the AI narrative. Investors without a Hong Kong Stock Connect account can gain exposure to China's core AI assets through the Hang Seng Tech Index ETF (513180) with a single click.