The Hang Seng Index, a key indicator of the Hong Kong stock market, surged to a three-year high on Friday, closing 3.99% higher at 23,477.92. This marked its biggest one-day gain since early October. The index has risen 17% since the start of the year, underscoring the robust performance of Hong Kong shares driven by optimism in the technology sector and promising developments in artificial intelligence.
The rally in the Hang Seng Index was significantly influenced by the performance of heavyweight Chinese tech stocks. Recent weeks have seen these stocks rally, spurred by the release of new models by AI startup DeepSeek last month. These advancements prompted a reassessment of China's capabilities within the artificial intelligence sector, fueling investor confidence and hope for an AI boom originating from within China.
Adding further momentum to the rally, better-than-expected earnings results from Alibaba Group Holding were a key factor. As a major constituent of the Hang Seng Index, Alibaba's strong performance contributed significantly to the index's rise. This e-commerce conglomerate's positive earnings report reassured investors and analysts alike, providing a boost to market sentiment.
The Hang Seng Index is calculated and maintained by Hang Seng Indexes Company Limited. It is composed of the 50 largest and most liquid stocks on the Hong Kong Stock Exchange and is widely followed by investors and analysts globally. Serving as a benchmark for investment funds and other financial instruments, the index's performance is pivotal in assessing market trends.
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