SHANGHAI: Hong Kong and China stocks rose on Thursday, led by tech and artificial intelligence shares, as analysts said Hong Kong-listed tech firms remain under-represented in global AI investment portfolios.
China’s blue-chip CSI300 Index and the Shanghai Composite Index both ended 0.2% higher. Hong Kong benchmark Hang Seng added 1.1%.
Huatai analysts pegged Hong Kong’s equity market as a strategic asset for global investors seeking to diversify their portfolio and a potential hedge against US dollar volatility.
Technology is a central investment theme, they said, adding Hong Kong remains under-allocated.
“As future gains in global productivity are expected to hinge on advances in artificial intelligence, the companies best positioned to lead this race are largely concentrated in the US and Hong Kong.”
Tech stocks traded in Hong Kong gained 1.9%, tracking the overnight rise in Chinese ADRs listed in New York, while the onshore shares climbed 2.3%.
China’s CSI Internet Finance Index jumped 2.3% as investors shifted focus to fintech opportunities after Hong Kong passed a stablecoin bill last month.
China’s services activity expanded at a slightly faster pace in May, with new orders growing more quickly than in April, though new export orders declined due to uncertainty stemming from US tariffs, a private sector survey showed.
The CSI Rare Earth Index rose 0.8%, after a group representing auto suppliers in the US called for immediate action to address China’s restricted exports of rare earths, minerals and magnets, warning the issue could quickly disrupt auto parts production.
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