HONG KONG: Hong Kong stocks kicked off 2026 on a strong note to climb to a one-month high, as renewed optimism towards China’s domestic artificial intelligence sector continued to buoy the market.
- By the midday break on Friday, the benchmark Hang Seng Index had added 2.2% to 26,189.79, its highest level since December 2.
- That extended the rally from 2025, which was the index’s best annual gain since 2017.
- Leading the gains on Friday, the tech sector index leapt 3.4% to the highest level since November 18, and the artificial intelligence (AI) index added 3.2%.
- That came after DeepSeek published a paper this week showcasing a cheaper way to develop AI, reigniting optimism towards Chinese tech capabilities.
- “AI technology narratives will still be the main theme running throughout the year” with DeepSeek continuing to catalyse a revaluation of Chinese assets, analysts at Guolian Minsheng Securities said in a note.
- Shares of Chinese AI chip designer Shanghai Biren Technology more than doubled in their Hong Kong debut, kicking off the financial hub’s first listing of 2026 with a bang.
- “Tech optimism continues” and the strong initial public offer performance on Friday gave an additional boost to sentiment, said Wee Khoon Chong, APAC Macro Strategist at BNY.
- Among other major winners on Friday, chipmaker Hua Hong Semiconductor jumped nearly 10% to hit its highest since November 20, extending recent gains after the company announced a deal that would further enhance its 12-inch wafer foundry capacity.
- Search engine operator Baidu rallied 7.5% to the highest level since September 2023.
- Mainland China’s stock markets were closed on January 1-2 for the New Year holiday, and will resume trade on Monday, January 5.‑Reuters
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