Hong Kong stocks surged to a four-month high on Wednesday as more Wall Street strategists turned bullish on China's AI-fueled tech rally.
The Hang Seng Index surged 2.64%, or 563.06 points, to end at 21,857.92, the best finish since Oct. 7, 2024. The Hang Seng China Enterprises Index added 2.75%, or 215.36 points, to 8,058.08.
Strategists from Morgan Stanley, JPMorgan Chase, and UBS Group said the success of Deepseek on the global front is expected to prolong stock gains, as investors show renewed interest in the world's second-largest economy over its tech advancement, Bloomberg reported.
Alibaba Group (HKG:9988) also soared over 8% on Wednesday following news of the tech giant pairing up with Apple to bring AI features to Chinese iPhone users, according to a Tuesday report by Reuters, citing the Information and one source familiar with the decision.
Continued AI enthusiasm ignited a frenzy in Chinese tech stocks, with SMIC (HKG:0981, SHA:688981) surging 6% and Tencent (HKG:0700) and Xiaomi (HKG:1810) rising nearly 4% each.
In corporate news, Chinese bubble tea company Guming Holdings (HKG:1364) made a weak trading debut in Hong Kong, closing at HK$9.30, down over 6% from its IPO price of HK$9.94.
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