This photo taken on February 21, 2025 shows an aerial view of the Kai Tak Sports Parks in Hong Kong. Hong Kong is facing its toughest fiscal test in three decades following a three-year run of mammoth deficits, with experts urging the government to make careful cuts as the economy wobbles. (Photo by Peter PARKS / AFP)
Hong Kong, China — Hong Kong stocks jumped more than three percent Wednesday afternoon as Chinese tech firms resumed a blistering rally on optimism about the outlook for the sector.
The Hang Seng Index climbed 3.16 percent, or 728.09 points, to 23,762.11.
The index has enjoyed a blockbuster start to the year, rocketing by almost a fifth to hit its highest level since March 2022, as investors snap up long-neglected tech names after Chinese startup DeepSeek unveiled a chatbot last month that upended the AI scramble.
Confidence in the sector has also been helped by Beijing’s moves to bring the firms in from the cold after years of government crackdowns on the industry.
E-commerce heavyweight Alibaba was again at the forefront of the advances, rallying more than five percent, with JD.com and Meituan each up more than eight percent. Tencent was more than four percent higher.
Investors are rushing to get back into the stocks, having offloaded them this week in response to news that US President Donald Trump had signed a memo over the weekend calling for curbs on Chinese investments in industries including technology, critical infrastructure, healthcare and energy.