Hong Kong stocks rose, tracking a rally on Wall Street that sent a benchmark index to a record high, and the prospect of warmer US-China relations following US President Donald Trump’s speech to the World Economic Forum (WEF) further aided sentiment.

The Hang Seng Index rose 2.2 per cent to 20,123.47 as of 13.49am local time, putting the benchmark on course for a second week of gains after rising 1.5 per cent so far this week. The Hang Seng Tech Index added 3.4 per cent. On the mainland, the CSI 300 Index was up 0.7 per cent, while the Shanghai Composite Index increased 0.6 per cent.

Chipmaker SMIC led the pacers, rising 3.7 per cent. Travel platform Trip.com advanced 5.4 per cent to HK$541.5 and smartphone maker Xiaomi added 7.3 per cent to HK$37, hitting a record new high.

Trump voiced optimism about relations with China, describing it as “very good”, while warning of tariffs on companies that do not manufacture in the US. He also called for lower interest rates and cheaper oil prices. The comments sent the S&P 500 Index 0.5 per cent higher to an all-time high, with the gauge crossing the 6,100 level.

Carmakers were in the limelight after three leading assemblers took legal action against the European Commission over anti-subsidy duties imposed on Chinese-made electric vehicles last year. BYD added 1.9 per cent to HK$276, Geely Auto rose 2.4 per cent to HK$14.5, while Li Auto advanced 3.7 per cent to HK$90.5.

Nongfu Spring jumped 3.2 per cent to HK$35.15. The bottled-water maker’s billionaire founder Zhong Shanshan on Thursday vowed to steer clear of price wars, after a year of aggressive price cuts and online personal attacks cost his company billions in market value.