Tech Stocks Surge Ahead of Key Policy Meeting in China

China and Hong Kong stock markets reached three-week highs as investors looked to technology stocks amid hopes for new economic stimulus measures. The anticipation for policy support comes ahead of the Central Economic Work Conference, which will outline China's economic targets for 2025.

On Friday, China and Hong Kong stocks surged to three-week highs, fueled by investor optimism about forthcoming stimulus initiatives from an upcoming key policy meeting. This trend predominantly featured technology shares, despite intensified U.S. chip restrictions.

In China, the Shanghai Composite Index saw a 1.2% rise, reaching its highest point since mid-November, with the CSI 300 blue-chip index climbing 1.6%. Hong Kong's Hang Seng Index also performed well, increasing by 1.4% to a three-week apex.

Investor expectations are high for the Central Economic Work Conference, which is anticipated to outline China's 2025 economic agenda and targets. Amid tariff threats from U.S. president-elect Donald Trump, calls for new Chinese economic policies are growing. Meanwhile, tech shares led the market gains, supported by new government incentives favoring China-made technology.

(With inputs from agencies.)