Hong Kong’s market kicked off the new year strong, with the Hang Seng Index climbing over 2% as excitement around Chinese artificial‑intelligence firms lifted tech shares.
Market Overview
By midday Friday, the Hang Seng reached 26,189.79 – its highest level since December 2. The gain continues a rally that began in 2025, marking the index’s best annual performance since 2017.
AI‑Driven Gains
The tech‑sector index jumped 3.4% to a peak not seen since mid‑November, while the dedicated AI index rose 3.2%.
Analysts say AI will remain the main market theme for the rest of the year, especially after DeepSeek released a paper showing a cheaper way to build AI models, reigniting confidence in Chinese tech capabilities.
Key Performers
- Shanghai Biren Technology – The AI‑chip designer more than doubled its price on the first day of trading, marking the first big Hong Kong IPO of 2026.
- Hua Hong Semiconductor – Shares surged nearly 10% after the company announced a deal to expand its 12‑inch wafer‑fab capacity.
- Baidu – The search‑engine giant rose 7.5%, reaching its highest level since September 2023.
What This Means for Investors
The rally shows that investors are betting on a revival of Chinese technology, especially AI. Companies tied to chip production and AI software are leading the charge, so keeping an eye on earnings reports and policy updates could be worthwhile.
Upcoming Market Schedule
China’s mainland stock exchanges were closed on Jan 1‑2 for the New Year holiday and will reopen on Monday, Jan 5.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.