Hang Seng Tech Index Breaks Through 6,600 Points to Hit New Phase High – What’s Driving the Surge in Hong Kong Tech Stocks?

The Hang Seng Tech Index surged intraday to 6,618.84 points today, reaching its highest level since November 2021. As of writing, the index was up 2.62% at 6,635.30 points.

Kuaishou-W (01024.HK) stood out with notable performance, rising 7.39% to HK$90.85 at the time of writing, after hitting an intraday high of HK$91.40. The stock has shown sustained strength recently, with a 5-day gain of over 20% and a year-to-date increase of as much as 120%.

Guosen Securities analysis pointed out that the valuation of Hong Kong-listed internet giants is rapidly converging with their overseas peers. The valuation levels of Tencent and Meta, as well as Alibaba and Google, have returned to similar ranges.

The institution believes that domestic giants have formally entered a phase of increasing AI investments, similar to the massive capital expenditures led by Microsoft and Meta in mid-2023 to deploy AI. A typical characteristic of this phase is that short-term profits may be affected by AI investments, but stock prices are mainly driven by the scale of AI investments and marginal progress in models, technology, and applications.

J.P. Morgan significantly raised its target price for Alibaba’s Hong Kong shares to HK$240. Analysts including Alex Yao noted that Alibaba Cloud’s revenue growth has accelerated for eight consecutive quarters, with a 26% year-on-year increase in Q2 2025, mainly driven by generative AI demand in areas such as the internet, autonomous driving, and embodied intelligence.

They expect that the adoption rate of generative AI in China may exceed that of the previous software-as-a-service (SaaS) wave.

Guotai Haitong maintained its "Overweight" rating on Baidu Group and raised its target price to HK$176. The report highlighted that Baidu, leveraging its self-developed AI models, has strengthened its empowerment of multiple business lines. The Deep-Thinking model Wenxin X1.1 showed significant improvements across multiple metrics, with overall benchmark test results now on par with GPT-5 and Gemini 2.5 Pro.