Hong Kong Stocks Surge on AI Optimism

Hong Kong stocks started 2026 on a high note, achieving a 1.5-month peak due to renewed optimism in China's artificial intelligence sector. The Hang Seng Index rose 2.8%, driven by substantial gains in tech and AI stocks, bolstered by new developments in Chinese AI capabilities.

Hong Kong's stock market began the year 2026 with positivity, spurred by optimism in the domestic artificial intelligence sector, reaching a 1.5-month peak.

The Hang Seng Index saw a significant jump of 2.8% on Friday, closing at 26,338.47, the highest since mid-November. The tech sector, leading the surge, experienced a 4% rise, while the AI index climbed by 3.7% following new developments in AI technology.

Notably, Shanghai Biren Technology's shares soared 76% in its Hong Kong debut, demonstrating strong investor confidence. Analysts predict a favorable first half for Hong Kong stocks, despite ongoing domestic economic challenges and Fed policies, supported by burgeoning sector catalysts.

(With inputs from agencies.)