Southbound net inflow exceeds 13 billion! Huaxia Fund: Hong Kong internet stocks are already trading below intrinsic value

NightAirdropper · 2026-03-24T03:34:45+00:00

On March 23, Hong Kong stocks experienced panic due to external shocks, with tech stocks falling sharply. Southbound funds recorded net inflows exceeding HK$13 billion. Huaxia Fund stated that although stock prices are below intrinsic value, this represents a good long-term positioning opportunity and recommended paying attention to Hong Kong Stock Connect internet and technology ETFs. These ETFs focus on highly liquid internet enterprises, which helps capture market opportunities.

NightAirdropper

2026-03-24 03:34:45

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On March 23 (Monday), external shocks triggered panic in the equity markets, causing tech giants in Hong Kong stocks to decline again. The Huaxia Half-Day Hong Kong Stock Connect Technology ETF fell by 2.62%. As of 11:30, southbound funds had a net inflow of over HKD 13 billion into the Hong Kong stock market within two hours.

Wang Bo from the Huaxia Fund Investor Return Research Center stated: “The recent rapid decline of Hong Kong internet companies is mainly due to panic sentiment and liquidity shocks. However, current stock prices are already below intrinsic value, making it a good long-term investment opportunity. Focus on the Huaxia Hong Kong Stock Connect Internet ETF (520910.SH) and the Huaxia Hong Kong Stock Connect Technology ETF (159101.SZ).”

Both track the CSI Hong Kong Stock Connect Internet Index and the CSI Hong Kong Stock Connect Technology Index, respectively, indirectly holding a basket of Hong Kong internet companies. The difference is that the Huaxia Hong Kong Stock Connect Technology ETF (159101.SZ) also includes leading sectors such as semiconductors, new energy vehicles, and innovative medicines.

Compared to Hang Seng-related cross-border ETFs, these Hong Kong Stock Connect ETFs focus on “entry” targets like Alibaba, Tencent Holdings, Xiaomi Group, etc. Therefore, their liquidity is not limited by QD foreign exchange quotas. Against the backdrop of increased pricing power of southbound funds, they offer higher sensitivity.

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