TENCENT, KUAISHOU-W, MEITUAN-W! Why did the top stream fund buy Hong Kong Internet stocks in the first quarter?
Yinhua Fund's Li Xiaoxing exclaimed, "Internet platforms are the most promising direction for us in Hong Kong's technology sector!" In terms of valuation, the stock prices of Hong Kong's internet companies have experienced a two-year decline and are currently at historically low levels. With the acceleration of performance and the emergence of new technologies such as AI, there is hope for an upward trend in valuation.
Top fund manager Li Xiaoxing, who manages a fund with assets over 50 billion yuan, recently revealed his latest holdings and declared that "the internet is the direction we are most optimistic about in Hong Kong's technology sector!"
According to the first quarter report of the Yin Hua Xin Yi Flexible Allocation Mixed Fund, which is mainly focused on technology holdings under Li Xiaoxing's management, the fund added new positions in KUAISHOU-W, MEITUAN-W, and TENCENT in the first quarter, and bought these three stocks in one fell swoop, making them the second to fourth largest heavy-weighted stocks. BYD has been the number one heavy-weighted stock in the fund for two consecutive quarters.
Why is he buying Hong Kong internet stocks?
Li Xiaoxing explained in his investment philosophy "short essay":
"Internet platforms are the direction we are most optimistic about in Hong Kong's technology sector. In terms of performance, internet companies have continued to exceed expectations since the second quarter of 2022. Under the background of the end of the user dividend and the superimposed anti-monopoly policy, reducing costs and increasing efficiency will be the main theme driving performance growth in the future.
In terms of valuation, after two years of decline, the valuation of Hong Kong's internet stocks is at a historical low. With the acceleration of performance and the emergence of new technologies such as AI, there is hope for an upward valuation trend."
In addition, regarding the hot AI market, Li Xiaoxing believes that ChatGPT is another revolutionary technology after PCs and the internet. After the launch of this phenomenon-level application, various domestic and foreign giants are accelerating their entry into the market.
However, it should be noted that the development of the AI industry will not happen overnight, and there will inevitably be twists and turns, including potential risks such as data privacy and ethics, which may cause fluctuations in the sector in the future. In terms of investment opportunities, the "water sellers" hardware-first computing power industry chain, as well as vertical application scenarios empowered by AI for users, are worth paying attention to.