Hong Kong stocks and Chinese tech giants are soaring as China’s AI advancements and a renewed embrace of tech leaders spark investor enthusiasm. The Hang Seng Index has surged 13% this year, competing with Germany’s DAX as the world’s top-performing market, while Hong Kong tech stocks have jumped 31% since mid-January.
The rally intensified after President Xi Jinping’s meeting with top tech executives in Beijing, fueling speculation over policy shifts. Investors closely analyzed footage from the meeting, searching for signs of government support. Shares in Alibaba (9988.HK) surged nearly 50% this year following reports of an AI collaboration with Apple, alongside the reappearance of Jack Ma, a key figure in China’s tech crackdown.
However, hot money and retail-driven speculation are largely behind the market’s swings, with hedge funds wary of long-term commitments. Mainland investors have poured HK$26.6 billion ($3.4 billion) into Hong Kong markets since Lunar New Year, echoing past frenzies.
Despite optimism, past disappointments—such as false starts after China’s post-COVID reopening and stimulus pledges—make many investors cautious. As Maybank’s Wong Kok Hoong put it: “The early believers eat the chicken, the late ones are left with empty plates.”
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