Hong Kong Stock Surge: Tech and AI Lead the Way

Hong Kong and China stocks saw an upward trend led by technology and AI shares, with analysts identifying Hong Kong-listed tech firms as under-represented in global AI portfolios. Hong Kong's market is strategically important for diversifying away from the U.S. dollar, while China's services activity showed growth despite export challenges.

On Thursday, stocks in Hong Kong and China experienced an upswing, driven primarily by technology and artificial intelligence shares. Analysts have pointed out that tech companies listed in Hong Kong are currently under-represented in global AI investment portfolios, suggesting potential room for growth.

The blue-chip CSI300 Index and Shanghai Composite Index both rose by 0.1% during the morning session, while Hong Kong's Hang Seng Index increased by 0.4%. According to Huatai analysts, Hong Kong's equity market holds strategic value for global investors, who are looking to diversify their portfolios amid a move away from the U.S. dollar.

The analysts emphasized technology as a central investment theme, noting that future global productivity gains are expected to rely on AI advancements. Hong Kong remains under-allocated in AI investments despite being well-positioned for growth. Meanwhile, the CSI Rare Earth Index gained amid concerns over restricted Chinese exports affecting U.S. auto parts production.

(With inputs from agencies.)