DeepSeek, Goldman Sachs, and the Resurgence of Hong Kong's Stock Market

DeepSeek and Hong Kong's Stock Resurgence

Hong Kong stocks rose on Friday, halting a five-day slump, as investors resumed buying tech companies on optimism advances in artificial intelligence (AI) will sustain a bull run this year. Port operator CK Hutchison plunged on concerns about its politically-charged asset sale.

Catalysts for Recovery

The Hang Seng Index increased 0.9 per cent to 23,677.68 as of 10am local time, following a 3.7 per cent loss over the preceding five trading days stoked by worries about trade wars. The Hang Seng Tech Index climbed 0.8 per cent while the Shanghai Composite Index gained 0.8 per cent.

• Alibaba Group Holding rose 2.9 per cent to HK$135.30
• Wuxi Biologics surged 10 per cent to HK$25.80
• Baidu rallied 3.8 per cent to HK$92.85
• Mengniu Dairy jumped 4.7 per cent to HK$19.02
• Zijin Mining Group surged 4 per cent to HK$16.94
• BYD strengthened 1.7 per cent to HK$367

Elsewhere, CK Hutchison sank 5.9 per cent to HK$46.50 after a state-backed newspaper posted an article rebuking its sale of port assets to leading US-based investors.

A Broader Context

Hong Kong’s stock market has risen 17 per cent this year, while the tech barometer rallied 28 per cent fuelled by Chinese start-up DeepSeek's AI breakthroughs. Global banks, including Citigroup and Goldman Sachs, became more bullish on Chinese stocks on valuation appeal as US equities hit correction mode.

Stocks in the US fell overnight after President Donald Trump announced plans to impose fresh tariffs on wine, champagne and other alcoholic beverages from Europe. The S&P 500 Index fell to a six-month low, bringing the losses to more than 10 per cent from its February peak. The Nasdaq Composite Index fell 2 per cent.

Major Asia-Pacific markets were mixed. Japan’s Nikkei 225 advanced 0.2 per cent and Australia’s S&P/ASX 200 added 0.4 per cent, while South Korea’s Kospi retreated 0.2 per cent.