The Hong Kong Stock Exchange experienced a notable surge propelled by China’s backing for growth, particularly in the technology sector. This surge marked the strongest weekly performance in nearly two months, reflecting a positive market sentiment driven by China’s commitment to bolstering economic expansion and fostering tech innovation.

During the week, the Hang Seng Index saw a 0.6% increase, reaching 24,504.80 at midday, resulting in a substantial 6.8% gain for the week. The Hang Seng Tech Index also made significant progress, rising by 1.3%. Conversely, mainland indices like the CSI 300 and the Shanghai Composite experienced marginal fluctuations, with the former dipping by 0.1% and the latter remaining relatively stable.

Several key players in the market demonstrated noteworthy performance. Kuaishou Technology, for instance, soared to a one-year peak, surging by 5% to HK$63.86. Similarly, Alibaba Group Holding recorded a 1.6% increase, reaching HK$143, while Meituan advanced by 3.4% to HK$186.50. Noteworthy gains were also observed in Chinese sportswear companies, with Li Ning escalating by 7.9% to HK$19.04 and Anta Sports Products climbing by 6% to HK$100.80.

Investor optimism was underpinned by China’s projection of a 5% growth target for the year, coupled with its explicit commitment to fostering technology innovation, particularly through the deployment of advanced language models. This vision was articulated in the government report presented at the annual legislative National People’s Congress. Additionally, a correction in US stock markets further fueled the trend of investing in Chinese tech stocks, which are perceived as undervalued compared to their US counterparts, often referred to as the “Magnificent Seven” stocks.

While acknowledging that the most rapid gains might have already materialized, Zhang Jun, the head of research at China Asset Management (Hong Kong), emphasized the emergence of new stock selection opportunities as China’s economy gains traction. This evolving landscape indicates a promising outlook for investors seeking exposure to the dynamic and rapidly expanding Chinese market.

In conclusion, the recent upsurge in the Hong Kong Stock Exchange underscores the pivotal role of China’s growth support and technological aspirations in propelling market confidence and driving investment activities. This momentum not only reflects the resilience of the market but also signifies the evolving landscape of global finance, where strategic partnerships and technological advancements play a defining role in shaping investment trends and market dynamics.