Understanding the Market | Sci-Tech Stocks Open Low and Continue to Rise, Driving the Hang Seng TECH Index Up Over 4% Again "China Dragon" ETF Debuts on US Stock Market on Thursday
Tech stocks opened lower this morning but continued to rise, with the Hang Seng TECH Index up over 4%. Tech stocks such as Meituan, Alibaba, Tencent, and Baidu all saw significant gains. At the same time, the new ETF DRAG "China Dragon" debuted on the US stock market, with components including Tencent, Pinduoduo, and nine other large tech companies, showcasing competitive advantages. Huatai Securities pointed out that the internet sector's performance continues to demonstrate resilience, stable policies will help companies improve operational efficiency, share buybacks and dividends will increase shareholder returns, and there is active deployment in the generative AI field
According to the Wisdom Finance app, Ke.com's stock opened lower in the morning and continued to rise, driving the Hang Seng TECH Index up by over 4%. As of the time of writing, Meituan-W (03690) rose by 3.8% to HKD 212.8, Alibaba-W (09988) rose by 3.45% to HKD 113.8, Tencent (00700) rose by 2.53% to HKD 478, and Baidu Group-SW (09888) rose by 1.01% to HKD 109.9.
On the news front, on Thursday, a new ETF DRAG "China Dragon" tracking the performance of large Chinese companies landed on the US stock market. Its current components include Tencent, Pinduoduo, Alibaba, Meituan, BYD, Xiaomi, JD.com, Baidu, and NetEase. Roundhill Investment Company stated that at the time of launch, these nine super large tech companies have shown competitive advantages in economies of scale, robust fundamentals, and significantly stronger growth than their peers. This ETF will be rebalanced quarterly.
Huatai Securities pointed out that the internet sector's performance in the second quarter continues to validate its operational resilience, benefiting from macroeconomic expectations recovery; stable policy expectations, continuous interconnection, and intercommunication are expected to help internet companies make up for shortcomings, further improve operational efficiency; internet companies continue to increase shareholder returns through buybacks and dividends; in the field of generative AI, active layout, fully leveraging technological advantages, expected to benefit from the big model opportunity, and kick off a new product cycle