The Hang Seng Index increased by 0.18% to 22,661.9 at the lunch break. In early trading, it broke beyond the 23,000 mark to record a new high for the year and got closer to the top set in October 2024.
Some investors who purchased at the peak in October 2024 may win if the index gets closer to its high from the previous year, according to Richard Tang, a China strategist at Julius Baer.
According to the official news agency Xinhua, Xi Jinping met with CEOs of private companies in Beijing on the same day.
Top Chinese internet entrepreneurs, such as Tencent CEO Pony Ma and Alibaba co-founder Jack Ma, will attend the conference aimed at improving the mood toward the private sector, according to a Reuters story last week.
Growing disparity was observed in tech equities, which recorded their strongest winning run in more than two years.
The broader Hang Seng Tech Index fell 0.1% by lunchtime, despite Tencent’s 4% increase following the internet behemoth’s announcement that it will be testing DeepSeek’s AI model in its messaging app.
Baidu lost 6.8% while Alibaba declined 0.08%.
China’s blue-chip CSI300 index increased 0.07% to 3941.76 points, while the Shanghai Composite index gained 0.06% to 3,348.85 points.
BofA Securities was among the banks that issued a warning against short-term overshoot exuberance.
** BofA analysts stated
“We caution that China market may still face short-term negative catalysts from policy disappointment, geopolitical tensions and weak macro data/earnings,”.
According to CICC analysts, foreign long-term investors stayed out of the market, while speculative trading and passive funds propelled the increase in tech firms listed in Hong Kong.
Japan’s Nikkei index rose 0.15%, while MSCI’s Asia ex-Japan market index firmed 0.35%.
