Hong Kong's AI-Driven Stock Surge: Alibaba Leads the Charge

Hong Kong shares climbed on Wednesday, with Alibaba leading the surge due to AI-related revaluation prospects. Apple is collaborating with Alibaba to introduce AI features in iPhones, boosting Alibaba's shares by 6.7%. Other tech stocks also saw gains, while Baidu shares declined by 3.5%.

Hong Kong shares experienced a notable increase on Wednesday, largely driven by a rally in Alibaba shares. This surge comes as markets explore AI-driven revaluation opportunities. However, Chinese stocks remained relatively stable, with the blue-chip CSI300 Index dipping slightly by 0.1% during the morning session and the Shanghai Composite Index holding steady.

Alibaba's Hong Kong shares jumped 6.7%, reaching a four-month high after reports of a partnership with Apple to integrate artificial intelligence features into iPhones for the Chinese market. In contrast, Baidu's shares declined by 3.5%, as its progress on AI models for Apple did not meet expectations from the previous partnership.

Overall, tech stocks in Hong Kong appreciated by 1.2%, with significant contributors like Lenovo Group and BYD Electronic rising by 4.6% and 6.2%, respectively. Strategists, like UBS's James Wang, attribute the rallies to technology-driven optimism, highlighting potential re-rating opportunities and emerging valuation advantages in AI-related sectors.

(With inputs from agencies.)