Hong Kong stocks advanced on Friday, with technology shares leading gains as the Hang Seng Index approached a four-month high. Despite some investors adjusting their positions ahead of a key US jobs report, the market remained on track for its best weekly performance since early October. By 2:30 PM local time, the Hang Seng Index had risen 0.5% to 20,999.11, while the Tech Index climbed 0.9%. Mainland markets also saw gains, with the CSI 300 Index up 0.6% and the Shanghai Composite Index rising 0.5%.
Lenovo Group was among the biggest winners, surging 7% to HK$12.30, while Xiaomi gained 3.3% to HK$41.90 following the announcement of a new electric vehicle (EV) and smartphone lineup. HSBC raised its price target for Xiaomi from HK$37.90 to HK$49.90, citing the company as a major beneficiary of China’s nationwide subsidy program. Similarly, Huatai Securities increased Lenovo’s target price to HK$13.85, highlighting growing demand for PC power driven by artificial intelligence (AI) advancements from DeepSeek.
The broader tech sector continued its strong momentum, benefiting from investor enthusiasm around AI and innovation. Analysts noted that the inflow of funds into technology stocks has been driving their upward trajectory, though gains have yet to be fully supported by long-term fundamentals.
The EV sector also performed well, with Geely Automobile rising 6.7% to HK$17.50, Li Auto up 6.3% to HK$101.90, and BYD gaining 2.6% to HK$334. Solar company Xinyi Solar added 6.6% to reach HK$3.55.
However, some stocks trimmed overall market gains. State-owned energy giant CNOOC declined 1.3% to HK$18.56, while Sinopharm Group fell by the same margin. Semiconductor Manufacturing International saw a sharp drop of 5.1% to HK$45.45, reflecting volatility in the chip sector.
Chinese tech stocks have benefited from recent AI-related developments, helping narrow the valuation gap with their US counterparts. Analysts believe that as China’s innovation capabilities gain recognition, foreign investment inflows will increase.
Investors are now watching the US jobs report for signals on the Federal Reserve’s interest rate policy. With the Fed keeping rates unchanged last month, expectations for rate cuts have been tempered.
Meanwhile, ongoing US-China trade tensions add another layer of complexity. Investors are closely monitoring potential policy responses from Beijing, especially regarding property market support and consumer demand measures ahead of key political meetings in March.
In other Asian markets, Japan’s Nikkei 225 dropped 0.6%, South Korea’s Kospi slipped 0.6%, and Australia’s S&P/ASX 200 edged down 0.1%.
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