In Friday's pre-market session, shares of XPeng Motors (XPENG-W) surged 5.14%, mirroring the strong performance of Hong Kong-listed electric vehicle (EV) stocks amid optimism surrounding the sector's growth potential and the rise of artificial intelligence (AI) technology.
The rally was fueled by JPMorgan's bullish outlook on industry leader BYD Company, as the investment bank raised its price target for the automaker by over 60%, citing expectations of robust global expansion and the rollout of its self-driving system. BYD's stock climbed 5% in Hong Kong trading.
Additionally, the broader Hong Kong technology sector continued to soar, with the Hang Seng Tech Index rallying 5% to a three-year high, propelled by earnings surprises and renewed investor interest in Chinese tech giants like Alibaba and Tencent. The AI-driven frenzy and Beijing's perceived conciliatory stance towards the tech industry have reignited global investors' confidence in Chinese equities.
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