The largest onshore cross-border ETF, the HKD 65 billion Hong Kong Stock Connect Internet ETF, and the Fidelity and Connect Funds officially announce fee reductions.

On March 26, the China Asset Management Company announced a reduction in management fees and custody fees for its Hong Kong Stock Connect Internet ETF, Fortune (159792), and its feeder funds (Class A 014673/Class C 014674). The management fee will decrease from 0.5% per year to 0.15% per year, and the custody fee will decrease from 0.1% per year to 0.05% per year. The new rates will officially take effect on March 27, 2026.

(Announcement screenshot)

The Hong Kong Stock Connect Internet ETF closely tracks the CSI Hong Kong Stock Connect Internet Index (931637.CSI). As of March 25, the fund size exceeded 65 billion yuan, making it the largest cross-border ETF and single-industry theme ETF in the entire market.

Public information shows that the Hong Kong Stock Connect Internet ETF and its feeder funds focus on the Hong Kong internet sector, covering e-commerce, social media, and healthcare technology sectors. The top ten constituent stocks of the benchmark index include leading internet technology giants such as Alibaba, Xiaomi, Tencent, and Meituan, with the four major players accounting for over 53% of the weight. These companies have substantial technological foundations in emerging fields such as AI, cloud computing, and big data, serving as the “ballast” for core technology assets in Hong Kong stocks.

Industry insiders point out that the product management fee rate is set at the lowest tier among similar ETFs, effectively reducing long-term holding costs for investors and further enhancing the product’s market competitiveness.

The current Hong Kong stock market is showing patterns of index fluctuations and sector differentiation, with capital focusing on performance certainty and valuation recovery as the main line of investment.

The fund manager of the Hong Kong Stock Connect Internet ETF, Tian Ximeng, stated that the current Hong Kong stock market is experiencing multiple positive factors resonating together. Core assets such as the Hong Kong Stock Connect Internet ETF are expected to welcome opportunities for dual recovery in valuation and performance, injecting confidence into the market.

He also pointed out that the current positive signals in the Hong Kong stock market mainly focus on three aspects:

First, industry profit recovery is expected. With regulatory authorities releasing signals against “involution,” the irrational subsidy war in the food delivery industry has been halted, and the termination of subsidies is expected to significantly raise overall industry profit expectations.

Second, the iteration of large model technology is about to drive valuation reshaping. Previously, the market had doubts about the AI model capabilities of leading internet companies, but this expectation is likely to reach a turning point in April, as relevant leading enterprises plan to release significant updates to their large models, continuing to strengthen their core technology layouts in AI, cloud computing, and other areas. Substantial breakthroughs in technical strength are expected to boost market confidence and drive valuation recovery.

Additionally, the global risk appetite recovery provides support for the Hong Kong stock market. Tian Ximeng analyzed that as the most pessimistic scenarios of geopolitical friction gradually fade, external market pressures are expected to ease further, potentially driving a rebound in global risk appetite and bringing incremental capital support to the Hong Kong stock market.

Editor / Xu Nannan

(Fund announcement)