Hong Kong stocks jump on AI theme, hope for US-China tariff reprieve
Market participants ‘are yearning for the opportunity that the US will continue negotiations with China’, an analyst says
Hong Kong stocks advanced on Tuesday, with investors boosting artificial-intelligence (AI) firms amid optimism that negotiations will yet avert a trade war.
The Hang Seng Index rose 2.8 per cent to 20,789.96 for the biggest daily gain since October 18. The blue-chip index pared gains of as much as 3.3 per cent in earlier trading after China announced retaliation against US President Donald Trump’s 10 per cent tariffs on Chinese goods. The Hang Seng Tech Index jumped 5.1 per cent.
Mainland stock exchanges remained shut for the Lunar New Year holiday and will resume trading on Wednesday.
Technology stocks broadly rose, driven by companies involved in AI. Xiaomi climbed 4.2 per cent to HK$39.55, and JD.com gained 6.7 per cent to HK$162.10. E-commerce giant Alibaba Group Holding advanced 3.9 per cent to HK$97.65, and Tencent rose 4.1 per cent to HK$420.80.
Electric car maker Li Auto surged 8.7 per cent to HK$94.20, while Geely Automobile rose 7.9 per cent to HK$15.94. Chipmaker Semiconductor Manufacturing International, known as SMIC, jumped 8.5 per cent to HK$45.45, while apparel maker Shenzhou International Group Holdings gained 8.7 per cent to HK$62.90.
“The market is increasingly looking forward to the development of the mainland’s AI models, high-end chips or breakthrough technologies, pushing up the Hong Kong stock market today,” said Jason Chan, senior investment strategist at Bank of East Asia.
Trimming gains, ENN Energy Holdings dipped 0.9 per cent to HK$52.45 following China’s 15 per cent tariff proposal on imports of US liquefied natural gas, which may lead to higher gas costs.