Hong Kong stocks advance as Beijing's support spurs bets on tech rally
The Hang Seng Index climbed 0.7 per cent to 22,774.46 at 10.14am local time on Tuesday, a level not seen since October 7. The Tech Index gained 0.8 per cent. The CSI 300 Index, which tracks the biggest stocks listed in Shanghai and Shenzhen, slipped 0.2 per cent, while the Shanghai Composite Index retreated 0.3 per cent.
Smartphone maker Xiaomi rallied 4.9 per cent to HK$47.25 and carmaker BYD advanced 2.6 per cent to HK$365. E-commerce leader Alibaba Group Holding rose 1.7 per cent to HK$124.40 and WeChat operator Tencent Holdings added 0.9 per cent to HK$498. Top lender HSBC gained 1.5 per cent to HK$86.80 before its earnings report on Wednesday. President Xi Jinping urged tech entrepreneurs to contribute more to innovation amid an intensifying rivalry with the US, according to a readout released by state-run Xinhua News Agency. He also promised more protection for entrepreneurial interests and wider market access for them, in the first public meeting between the top leader and the private sector since 2018.
'It is a clear signal that the government would like to encourage the private sector to play a more important role in tech innovation,' said Zhang Zhiwei, chief economist at Pinpoint Asset Management in Hong Kong. The top-level meeting, if conducted regularly, would facilitate mutual understanding and boost confidence in the economy, he added.
Global investment banks have turned bullish on Chinese stocks since the success of DeepSeek's cost-effective AI model earlier this year, prompting a re-rating of Chinese tech companies. Goldman Sachs on Monday raised its 12-month targets for Chinese stocks, saying faster AI adoption would fuel corporate earnings and fund inflows.
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