The logic of valuation recovery continues, with attention on the internet sector rebounding — Samsung's CSI China Dragon Internet ETF (2812 HK) offers one-click access to leading Chinese internet companies amid a broad-based recovery.

Recently, China's internet industry has welcomed a long-awaited 'positive resonance.' From $TENCENT (00700.HK)$ 、 $BABA-W (09988.HK)$ 's increased focus on AI strategy, to $XIAOMI-W (01810.HK)$ 、 $JD-SW (09618.HK)$ 's business breakthroughs, and then to $NTES-S (09999.HK)$ 、 $BIDU-SW (09888.HK)$ 's technological layout, $Samsung CSI China Dragon Internet ETF (02812.HK)$ the core component stocks in the portfolio have successively released positive signals.

This sudden collective surge is no coincidence; behind it lies a triple positive driver: the shift in policy expectations, corporate strategic upgrades, and improved macro liquidity. For investors holding leading Chinese internet stocks, this could be a signal worth noting.

Meituan Soars 14%: Policy Shift Ends 'Cash-Burning War'

$MEITUAN-W (03690.HK)$ Meituan’s recent rise has been sharp, surging over 15% intraday on March 25. The direct catalyst came from a significant signal: the State Administration for Market Regulation reposted an article from the Economic Daily titled 'The Takeout Wars Should End.' The article pointed out that price wars in food delivery not only affect the restaurant industry but also impact people's livelihoods. The market widely interpreted this as a clear sign that vicious platform competition is coming to an end. For Meituan, this means profit margins previously eroded by price wars may recover, returning the industry to healthy development.[1]

AI Agent Era: A Qualitative Change from Cash Burn to Monetization

Over the past month, major domestic tech companies have fundamentally shifted their AI strategies. $TENCENT (00700.HK)$ Breaking away from the previously conservative investment logic, it is clear that by 2026, investments in AI new products will at least double. By 2025, this investment has already reached 18 billion yuan. $BABA-W (09988.HK)$ Establishing the TokenHub business group led personally by CEO Wu Yongming, with the goal of achieving an annual revenue breakthrough in cloud and AI commercialization within the next five years.$100 billion., equivalent to a sevenfold increase. [2]

More crucially, AI is transitioning from a cost center to a revenue engine. With the explosion of Agent applications, Tokens have become the core productive asset and value measurement standard of the AI era. Recent increases in AI computing power products by Tencent Cloud and Alibaba Cloud generally exceed400%。 $KUAISHOU-W (01024.HK)$ KeLing AI achieved340 million yuanin revenue by Q4 2025, with advertising consumption driven by AIGC (Artificial Intelligence Generated Content) materials reaching 4 billion yuan. [2]

PDD Holdings' 100-billion-yuan 'New PinMu' plan shakes the market

$PDD Holdings (PDD.US)$ Recently showing strong performance as well, with gains once exceeding 7%. This e-commerce giant simultaneously released its earnings report and unveiled a significant strategy: officially forming 'New PinMu', launching a self-operated brand model, continuing to heavily invest in China's supply chain. Specific measures include: establishing a special company in Shanghai with an initial cash injection of 15 billion yuan; planning a total investment of100 billion yuan over the next three years., integrating the supply chain resources of PDD Holdings and Temu; focusing on the global market, systematically operating self-run businesses and incubating brands across different categories. This strategic layout signifies that $PDD Holdings (PDD.US)$ is upgrading from a platform model to a dual-driven model of 'platform + self-operation.' [3]

Multiple component stocks have released positive news

In addition to the aforementioned companies, $Samsung CSI China Dragon Internet ETF (02812.HK)$ other component stocks in the portfolio have also successively released positive signals:

$NTES-S (09999.HK)$: 55% of shares moved to Hong Kong will be considered dual primary listing, which will help include the stock in Stock Connect

$BIDU-SW (09888.HK)$: The cost of embodied intelligence will drop significantly; robots may be charged per token in the future

$XIAOMI-W (01810.HK)$: Revenue for 2025 at 457.3 billion yuan, with auto business turning its first year of profit at 900 million yuan

$East Money Information (300059.SZ)$: Announced a dividend plan for the next three years, with annual cash dividends no less than 10%

$JD-SW (09618.HK)$: First appearance at the fashion week, established a quality alliance to strengthen quality control capabilities

$KINGSOFT (03888.HK)$：The demand for AI computing power continues to grow [4]

Macroeconomic context: Foreign capital returns to Chinese assets, valuation recovery logic continues

As corporate fundamentals improve, the valuation recovery logic is extending, with significant renewed attention on the internet sector.

Goldman Sachs’ chief China equity strategist, Kinger Lau, recently stated that international investors' interest in Chinese stocks may have risen to a multi-year high. Only about 10% of surveyed clients consider the Chinese stock market 'uninvestable,' a marked improvement from around 40% two years ago.

Amidst the current geopolitical tensions in the Middle East and soaring energy prices, Goldman Sachs maintains its overweight recommendation on Chinese equities (A-shares and Hong Kong shares), believing that Chinese assets offer a higher Sharpe ratio amid global volatility. [1]

$Samsung CSI China Dragon Internet ETF (02812.HK)$: One-click investment in leading Chinese internet companies

Meituan, PDD Holdings, Kingsoft Cloud, Alibaba, Tencent... these leading stocks are exactly $Samsung CSI China Dragon Internet ETF (02812.HK)$ the core holdings of this ETF. This ETF tracks the 'CSI Global China Internet Index,' selecting top Chinese internet companies listed globally. This means buying one lot of $Samsung CSI China Dragon Internet ETF (02812.HK)$ is equivalent to holding a basket of the largest platform companies in China's internet sector, directly benefiting from policy shifts, strategic upgrades, and the triple dividends of AI commercialization.

When policy shifts bring an end to internal competition, when giants invest heavily in the future, and when foreign capital inflows and improved liquidity create resonance — the leading Chinese internet companies are standing at a new starting point.

Source:

[1] Sohu (25/3/2026)

[2] Xinhua Finance (21/3/2026)

[3] NetEase (25/3/2026)

[4] Bloomberg, data as of March 26, 2026

Important Information

• The Samsung CSI China Dragon Internet ETF (the "Sub-fund") is a sub-fund of Samsung ETF Trust II. The investment objective of the Sub-fund is to provide investment performance that closely tracks the CSI Global China Internet Index before fees and expenses.

• Investment involves risks. Past performance is not indicative of future results. The price of funds can go up as well as down, and investors may suffer significant or total investment losses. Investors should not make any investment decisions based solely on this material.

• The main risk factors that the Sub-fund may face include general investment risks, currency risks, stock market risks, concentration risks in the internet and technology sectors, China market risks, multi-counter risks, risks of distributions from capital or effectively from capital, risks associated with the Stock Connect mechanism, Renminbi currency and exchange risks, securities lending transaction risks, passive investment risks, tracking error risks, trading risks, risks of trading discrepancies, termination risks, reliance on market makers, and liquidity risks. Please note that the above list of investment risks is not exhaustive. Investors should carefully read the product prospectus, product key facts statement, and related sales documents before making any investment decision to understand details including product features, risk factors, and distribution policies.

• The Manager may, at its discretion, pay distributions out of the Sub-fund's capital or effectively out of the Sub-fund's capital, which amounts to returning or withdrawing part of an investor’s original investment or any capital gains attributable to that original investment, resulting in an immediate reduction in the net asset value per unit of the fund.

• The Sub-fund has been authorized by the Hong Kong Securities and Futures Commission ("SFC"). Authorization does not imply official endorsement of the product. This material is for reference only and does not constitute an offer or solicitation to anyone to purchase, sell, or adopt any investment strategy.

This document is prepared by Samsung Asset Management (Hong Kong) Limited (SAMHK) and has not been reviewed by the Securities and Futures Commission or any other regulatory authority. Investors should determine whether any investment product or strategy is suitable for you based on your personal financial situation, investment experience, and goals. If you have any questions regarding the relevant information, you should seek professional advice as needed.

• Certain information contained in this content is compiled from third-party sources. SAMHK has made efforts to ensure that such information is accurate, complete, and up-to-date, and appropriate measures have been taken to verify the accuracy of the reproduced data. However, no responsibility or liability is assumed for the accuracy, use, or reliance on such information. This content may contain forward-looking statements based on SAMHK’s opinions, expectations, and projections. SAMHK has no obligation to update or revise any forward-looking statements, and actual results may differ materially from those anticipated in the forward-looking statements. All copyrights of the content herein (including all data, images, computer codes, text, logos, and designs) are owned by SAMHK. No reproduction or redistribution of the information provided in this content is allowed without SAMHK’s consent.

290K Views