Chinese technology stocks continue their robust rally, with the Hang Seng Tech Index poised to set its longest consecutive gains record since inception. Sustained investor enthusiasm for the AI sector propelled tech stocks higher on Thursday, as the index approaches its eighth consecutive week of gains.
The Hang Seng Tech Index surged nearly 2% during Thursday trading, with Hua Hong Semiconductor and JD.com leading the advance.
Government announcements of increased support for the technology sector have injected fresh momentum into the market. Alibaba's announcement of expanded AI investments and new partnership agreements with NVIDIA has further bolster investor confidence. Benefiting from these positive catalysts, the Hang Seng Tech Index has accumulated gains of approximately 44% year-to-date, demonstrating the strong recovery momentum of Chinese technology stocks.
AI Boom Fuels Tech Stock Rebound
Chinese technology companies have delivered strong recent performance, primarily benefiting from breakthrough developments in artificial intelligence. Startup DeepSeek's remarkable technological breakthroughs have captured global attention, driving investment enthusiasm for Chinese AI developers.
Hua Hong Semiconductor and JD.com emerged as Thursday's top performers. JD.com, as an e-commerce giant, has seen its AI development plans garner widespread market attention. Chip manufacturer Hua Hong Semiconductor has benefited from overall positive sentiment across the AI industry chain.
Vey-Sern Ling, Managing Director at Union Bancaire Privee, stated:
"AI optimism is certainly one of the driving factors, and Alibaba's confidence expressed yesterday in raising capital expenditure has brought positive sentiment across the entire technology sector."
Dual Benefits from Policy and Corporate Initiatives
Increased government support for the technology sector has provided crucial market momentum, with officials announcing enhanced industry backing.
Alibaba's latest initiatives have become a market focal point, with the company planning significant increases in AI sector investments and establishing new partnerships with NVIDIA. These moves demonstrate Chinese tech giants' firm confidence in AI prospects.
Ling also noted that concerns about destructive competition in food delivery and instant commerce sectors appear to be easing due to strengthened government regulation, creating a more favorable investment environment for tech stocks.
Record Rally Reshapes Market Landscape
The Hang Seng Tech Index is approaching its eighth consecutive week of gains, which would establish the longest consecutive gains record since the index's inception. The 44% cumulative gain year-to-date demonstrates the strong recovery momentum of Chinese technology stocks.
The significant improvement in investor sentiment indicates that the market has regained confidence in Chinese technology companies' competitiveness in the AI era.