Hang Seng Tech approaches "the longest winning streak in history"
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Chinese technology stocks continue their strong rally, with the Hang Seng Tech Index set to achieve its longest winning streak since its inception. Investors’ sustained enthusiasm for AI is driving tech stocks higher on Thursday, with the index poised for an eighth straight week of gains.
On Thursday, the Hang Seng Tech Index rose as much as 2%, led by companies such as Hua Hong Semiconductor and JD.com.
The government announced increased support for the technology sector, injecting new momentum into the market. Alibaba announced increased AI investment and a new partnership with NVIDIA, further boosting investor confidence. Benefiting from these positive factors, the Hang Seng Tech Index has gained about 44% so far this year, demonstrating a strong rebound in Chinese tech stocks.
AI Boom Drives Tech Stock Rebound
Chinese tech companies have recently performed strongly, mainly benefiting from breakthrough advances in artificial intelligence. The stunning technological breakthrough by startup DeepSeek drew global attention, fueling investor enthusiasm for Chinese AI developers.
Hua Hong Semiconductor and JD.com were the top gainers on Thursday. As an e-commerce giant, JD.com's AI development plans have attracted broad market attention. Chipmaker Hua Hong Semiconductor has benefited from the overall positive trend in the AI industry chain.
Vey-Sern Ling, Managing Director at Union Bancaire Privee, said:
AI optimism is undoubtedly one of the driving factors, and Alibaba’s announcement yesterday of increased capital expenditure has inspired positive sentiment across the entire tech sector.
Dual Boost from Policy and Corporate Initiatives
Greater government support for the tech sector has provided important momentum to the market, with authorities announcing increased assistance for the industry.
Alibaba’s latest move has become a market focus, with the company planning a significant increase in AI investment and establishing a new partnership with NVIDIA. These moves showcase the firm confidence of Chinese tech giants in the prospects of AI.
Ling also noted that, due to enhanced government regulation, concerns over vicious competition in food delivery and instant commerce sectors seem to be easing, creating a more favorable investment environment for tech stocks.
Record Rally Reshapes Market Dynamics
The Hang Seng Tech Index is poised for an eighth consecutive week of gains, which would set a record for the longest rally since the index was launched. The 44% cumulative gain so far this year demonstrates the strong rebound momentum of Chinese tech stocks.
The significant improvement in investor sentiment suggests that the market has regained confidence in the competitiveness of Chinese tech companies in the AI era.
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