Catenaa, Tuesday, February 18, 2025 – Hong Kong’s (HK) Hang Seng TECH Index, which represents the 30 largest listed technology companies, recorded a 3-year high on Tuesday after it gained over 3% fueled by the Al rally and promised relief by Chinese President Xi Jinping.
Hoever, China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moved little on Tuesday.
Hong Kong’s Hang Seng index was a standout performer, surging 3.04% on sustained strength in technology stocks by Tuesday noon.
Chinese tech stocks have been on a tear since late January, as the release of DeepSeek sparked increased confidence in the country’s artificial intelligence capabilities.
Up more than 25% in 2025, the Hang Seng Tech Index is beating gains seen in the broader equity indexes in Hong Kong and China.
Broader Chinese stocks also benefited from exposure to the AI rally, with Goldman Sachs analysts forecasting a faster AI adoption rate in the country, as well as improved economic growth.
President Xi Jinping promised to abolish unreasonable fines against private firms and urged entrepreneurs to maintain their competitive spirit.
The show of support is seen adding fuel to this year’s world-beating stock rally in Chinese stocks, which has largely been driven by optimism over DeepSeek’s artificial intelligence capabilities. Alibaba’s Jack Ma and DeepSeek founder Liang Wenfeng were among the attendees at the meeting.
The Hang Seng China Enterprises Index also rose as much as 2.29%, with technology stocks including Alibaba Group Holding Ltd. and Xiaomi Corp. contributing the most to the advance.
The gauge has now gained more than 23% since a low in January. The CSI 300 Index, an onshore benchmark, also edged higher.
It’s a rare moment in the limelight for the nation’s behemoth tech sector, after being shunned by investors for years amid price wars, sluggish consumer demand, and regulatory uncertainties.
Wall Street strategists including those at Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co. have released bullish calls in recent weeks as they expect AI to support corporate earnings and prompt a re-evaluation of the broader market.
