On February 21, Hong Kong stocks experienced a significant surge with the Hang Seng Index (HSI) rising by 3.99%, and the Hang Seng Tech Index (HSTECH) soaring by 6.53%.

In the technology sector, Alibaba's stock price jumped by 14.56% following the release of its third-quarter earnings report for fiscal year 2025, which showed an 8% increase in revenue, a 333% rise in net profit, and an 83% growth in operating profit. The company also announced plans to invest more in cloud and AI infrastructure over the next three years than it has in the past decade. This positive outlook has led multiple financial institutions, including Citi, JPMorgan, and HSBC, to raise their target prices for Alibaba.

China Unicom saw a remarkable increase of 15.72%, driven by strong performance in the telecommunications sector. China Telecom also rose by 12.75%, and China Mobile gained over 4%. The surge in telecom stocks was supported by the integration of AI capabilities from startup DeepSeek, which is expected to accelerate the commercialization of AI in the telecom industry.

Other notable gainers included Lenovo Group, which rose by 15.45% as the company continues to expand its AI PC market, and Bilibili, which increased by 16.47% after achieving quarterly profitability. Semiconductor stocks also performed well, with Hua Hong Semiconductor up by 9.21% and SMIC rising by 7.86%.

In the electric vehicle sector, Li Auto's stock price increased by 7.36%, while Xiaomi and BYD saw gains of 5.19% and 4.64%, respectively. The positive sentiment in the EV market was bolstered by strong growth projections and increased investments in AI and cloud infrastructure.

Overall, the Hong Kong stock market experienced a broad-based rally, with significant gains across various sectors, driven by positive earnings reports and optimistic market sentiment.