Hong Kong stock market rebounded on Tuesday, reversing an initial loss. The Hang Seng Index (HSI) decreased by 0.38%, the Hang Seng China Enterprises Index (HSCEI) fell by 0.43%, the Hang Seng Tech Index (HSTECH) turned positive.

Governor Pan Gongsheng of the People’s Bank of China noted that the Chinese economy hit the 5-percent growth target in 2024. The policy package announced in late September last year has been particularly instrumental in boosting social confidence and economic recovery.

Looking ahead, China will adopt a more proactive fiscal policy and an accommodative monetary policy, and will strengthen counter-cyclical adjustments. China will continue with the transformation of economic growth model, and strengthen the momentum of economic recovery.

Semiconductor sector bucks the trend to rise, Hua Hong Semi surges over 15%, Solomon Systech all rise over 10%, Shanghai Fudan up 8.7%, SMIC up 6%, Innoscience up 4%.

XPeng up 3.7%; Li Auto up 2.6%; Xiaomi up 1.55% to record high.

Tencent saw a decrease of 0.80%. Despite the decline, there were no specific news events directly affecting its stock price.

Alibaba-W fell by 1%. The stock was heavily bought by northbound and southbound funds, with net purchases of HKD 33.91 billion and HKD 34 billion, respectively. This indicates strong investor interest despite the overall market downturn.

JD-SW experienced a 2% drop. The company recently launched a domestic ride-hailing service on its app, covering over 400 cities in China. This new service could potentially expand JD's market reach and diversify its service offerings.

Baidu-SW declined by 2.3%. Baidu plans to accelerate the market coverage and operational efficiency of its autonomous driving service, "Apollo Go," in 2025. The company aims to enhance its AI capabilities and expand its partnerships to boost growth.

Kuaishou-W decreased by 0.94%. UBS's latest research report highlights the undervaluation of AI applications in China's online entertainment and education sectors, suggesting potential investment opportunities in Kuaishou due to its leadership in video generation AI models.