Hong Kong stocks closed up for the first time in four days on Thursday, after Nvidia’s better-than-expected earnings briefly dispelled Wall Street’s concerns about a potential artificial intelligence bubble.

The Hang Seng Index rose 0.02%, while the Hang Seng Tech Index dropped 0.6%.

In terms of star stocks, Baidu, Kuaishou rose 2%; Tencent fell 0.2%; Alibaba fell 1%; Xiaomi fell 3%; XPeng fell 4%; CATL fell 6%.

HSBC strategists said in a report on Thursday that although the valuations of Chinese technology stocks had risen a lot this year, they were still far from “bubble” territory and within the range of recent years.

“Our tech analysts remain bullish on AI but we stress that we have seen these cycles before,” said Herald van der Linde, head of equity strategy for Asia-Pacific at HSBC. He also stressed that Asian equities in 2026 would be led by “a pivot away from crowded AI trades” to refocus on other sectors.

Separately, both A and H shares of China International Capital Corporation, the nation’s top investment bank, were halted from trading after it proposed a merger with brokerage firms Cinda Securities and Dongxing Securities to support China’s financial market reform. The trading suspension could last up to 25 days.