Hong Kong Shares Rise as Alibaba Leads AI-Driven Rally
Hong Kong shares rise, driven by a strong rally in Alibaba shares. The market gained momentum as investors focused on revaluation opportunities linked to artificial intelligence (AI). Meanwhile, mainland China stocks remained mostly flat.
Hong Kong Market Boosted by Alibaba Gains
The Hang Seng Index (.HSI) rose 1.4%, with tech stocks leading the rally. Alibaba’s Hong Kong-listed shares (9988.HK) soared 6.7%, reaching a four-month high. The rise came after The Information reported that Apple (AAPL.O) is collaborating with Alibaba to introduce AI features for iPhone users in China.
On the other hand, Baidu’s shares (9888.HK) dropped 3.5%. The report noted that Baidu, Apple’s main partner last year, failed to meet Apple’s standards in developing AI models, resulting in a shift to Alibaba.
Broader Tech Sector Gains
The Hong Kong tech index (.HSTECH) gained 1.2%, with major players like Lenovo Group (0992.HK) and BYD Electronic (0285.HK) rising 4.6% and 6.2%, respectively.
UBS strategist James Wang pointed out that AI-related stocks are benefiting from ample liquidity and lower interest rates, creating opportunities for valuation upgrades. “Technology-driven rallies often see share prices rise ahead of earnings,” he said. “Internet companies, in particular, stand to gain from cheaper AI models and remain attractive due to low valuations and capital return initiatives.”
AI-Related Stocks Outperform
Onshore AI-related stocks (.CSI930713) rose 0.9%, outperforming other sectors. Equity strategists at Morgan Stanley highlighted that global investors are increasingly reassessing China’s potential in the tech and AI sectors. The growing competition between the US and China in areas like high-end manufacturing and AI is attracting renewed interest in Chinese tech stocks.
Bubble Tea Maker Guming Debuts on the Stock Exchange
Chinese bubble tea company Guming (1364.HK) had a flat debut on the Hong Kong Stock Exchange. The company raised $232 million through its initial public offering (IPO), but its shares remained relatively unchanged during the first day of trading.
with inputs from Reuters