Hong Kong
stocks surged, pushing the benchmark to a three-year high and erasing all the losses spurred by US President Donald Trump’s new tariffs, as expectations rose that China will introduce more stimulus polices to achieve its newly set annual growth target.
The Hang Seng Index rose 3.3 per cent to 24,369.71 at the close, finishing at the highest level since February 17, 2022. The Hang Seng Tech Index surged 5.4 per cent, closing at a level not seen since December 2021.
On the mainland, the CSI 300 Index climbed 1.4 per cent and the Shanghai Composite Index added 1.2 per cent. The tech-heavy Star Market 50 index advanced 3.5 per cent.
Alibaba Group Holding surged 8.4 per cent to HK$140.80 after releasing a
reasoning artificial intelligence (AI) model that it claims can trounce that of DeepSeek. Tencent Holdings jumped 7.6 per cent to HK$544, and Kuaishou Technology soared 16 per cent to HK$60.80. CK Hutchison Holdings extended a record rally sparked by the sale of port assets, climbing 9.5 per cent to HK$51.55.
China’s growth target of around 5 per cent for the year has raised optimism that more forceful stimulus measures will be necessary given multiple headwinds including deflation, the property market’s woes and frayed ties with the US. The government work report unveiled during the ongoing
National People’s Congress (NPC) also highlighted looser monetary policies, indicating that cuts in borrowing costs and banks’ reserve requirement ratio are on the way. It also pledged to widely apply AI large-language models and vigorously develop smart equipment and terminals including robotics and electrical vehicles.
“The pro-growth business tone of the government work report would provide fundamental support to investor sentiment after a strong market rally,” said Patrick Pan, a strategist at Daiwa Securities Group. He cautioned that there would be technical resistance after the Hang Seng Index topped the 24,000-point mark, based on demanding valuations and trade-war risk.
