China and Hong Kong Stocks Rise as AI Sector Booms
China and Hong Kong stocks rise, driven by a surge in the tech sector. Investor enthusiasm for domestic artificial intelligence (AI) firms remained strong, following a major breakthrough by Chinese AI start-up DeepSeek.
AI Stocks Lead Market Gains
At midday, China’s blue-chip CSI300 index climbed 0.69%, while the Shanghai Composite Index rose 0.76% to 3,254.12 points. Hong Kong’s Hang Seng Index also gained 0.29%, reaching 20,655.94 points.
AI-related sectors saw significant growth, with the CSI Semiconductor Industry Index jumping 4.3% to a five-week high. The Hang Seng Tech Index climbed 1%, reaching its highest level since October 2024.
Strong Performance in Semiconductor and AI Stocks
Chipmaker Naura saw its biggest single-day surge in nearly three months, rising 7.7%. Meanwhile, SMIC’s Hong Kong-listed shares hit a record high, rallying 6%.
The rally was fuelled by DeepSeek’s recent advancements, which challenged the perception that China lags behind U.S. AI firms. Analysts at China Securities noted that DeepSeek’s progress has boosted confidence in China’s AI industry, positioning it as a major investment theme.
Regional Market Overview
Across Asia, MSCI’s Asia ex-Japan stock index rose 0.25%, while Japan’s Nikkei Index was up 0.43%. Despite global market volatility, analysts believe China’s AI sector is carving its own path in the industry’s revaluation.
with inputs from Reuters
