2025 February, 14, 03:17:53 AM

Hong Kong Stocks Surge on Tech, AI Optimism

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Chinese Stocks in Hong Kong Near October High on Tech Boost

Bloomberg News - Fri, February 14, 2025, 8:23 AM GMT+6 - 2 min read

Chinese stocks in Hong Kong are experiencing a surge, driven by growing capabilities in artificial intelligence. The Hang Seng China Enterprises Index jumped significantly, approaching its October peak, fueled by key players like Xiaomi, Tencent, and Meituan. Onshore, the CSI 300 Index also saw gains.

Key Factors Driving the Market

  • AI Enthusiasm: DeepSeek, a Chinese AI startup, has sparked renewed investor confidence.
  • Re-evaluation of Growth Potential: Investors are recognizing China’s growth potential in the tech sector, leading to a re-evaluation of previously undervalued equities.
  • Hedge Fund Activity: Goldman Sachs reports that hedge funds are increasingly buying Chinese shares, primarily through long positions.

Analyst Perspectives

Deutsche Bank has described the ongoing tech advancements as a “Sputnik moment” for China. Several analysts believe that Beijing's potential stimulus measures at the upcoming Two Sessions in March could further bolster market momentum.

Challenges and Opportunities

Despite positive trends, challenges remain, including trade tensions with the U.S. and a slow economic recovery. The property sector's struggles necessitate additional policy support to sustain market growth.

Market Performance

The Hang Seng gauge has risen over 11% in 2025, making it one of Asia's top performers. It is nearing its October peak and is poised to reach its highest level since February 2022.

In Conclusion

Despite the ongoing economic uncertainties, China's AI sector provides hope for a durable market recovery. Investors are keenly watching for further policy initiatives that could sustain the current upward trend.

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