Chinese tech index hits 4 year high with AI driven rally
The post Chinese tech index hits 4 year high with AI driven rally appeared on BitcoinEthereumNews.com. Chinese technology shares rallied on Wednesday as renewed AI bets lifted a major Hong Kong index to a near four-year high. The Hang Seng Tech Index rose 4.2% to its strongest close since November 2021. Baidu Inc. led the advance with a 16% gain, while Alibaba Group Holding Ltd., Semiconductor Manufacturing International Corp., and JD.com Inc. also climbed sharply. The index has marked the 7th straight week in gains due to easing tensions between China and the United States along with rising confidence that large AI investments will begin to pay off. So far this year, the gauge has risen 42% according to Bloomberg. “China tech leaders are visibly re-accelerating AI spend and product rollouts, models, robotaxis, in-house chips, while also proving they can monetize AI faster than many expected,” said Charu Chanana, chief investment strategist at Saxo Markets. “With valuations lagging the U.S., investors are starting to pay attention again.” Valuations still below U.S. counterparts On valuation, the Hang Seng Tech Index trades at about 21 times projected earnings, below its five-year average of 23.3 times and under the Nasdaq 100’s multiple of 27 times, Bloomberg data show. If gains persist, capital could flow back to China after years of volatility from regulation and a weak post-pandemic economy. Interest in the sector has also been lifted by the surprise rollout of a DeepSeek AI model early this year, which spotlighted China’s push to compete in the global AI race. Brokerage calls added fuel. Goldman Sachs increased its Alibaba price target, citing an improved outlook for the company’s cloud business. Arete Research moved Baidu’s ADRs to buy from sell, highlighting the promise of its internal chip program. Contemporary Amperex Technology Co. advanced this week after JPMorgan raised its rating on the stock. Wednesday’s jump left the Hang Seng Tech Index…
The post Chinese tech index hits 4 year high with AI driven rally appeared on BitcoinEthereumNews.com.
Chinese technology shares rallied on Wednesday as renewed AI bets lifted a major Hong Kong index to a near four-year high. The Hang Seng Tech Index rose 4.2% to its strongest close since November 2021. Baidu Inc. led the advance with a 16% gain, while Alibaba Group Holding Ltd., Semiconductor Manufacturing International Corp., and JD.com Inc. also climbed sharply. The index has marked the 7th straight week in gains due to easing tensions between China and the United States along with rising confidence that large AI investments will begin to pay off. So far this year, the gauge has risen 42% according to Bloomberg. “China tech leaders are visibly re-accelerating AI spend and product rollouts, models, robotaxis, in-house chips, while also proving they can monetize AI faster than many expected,” said Charu Chanana, chief investment strategist at Saxo Markets. “With valuations lagging the U.S., investors are starting to pay attention again.” Valuations still below U.S. counterparts On valuation, the Hang Seng Tech Index trades at about 21 times projected earnings, below its five-year average of 23.3 times and under the Nasdaq 100’s multiple of 27 times, Bloomberg data show. If gains persist, capital could flow back to China after years of volatility from regulation and a weak post-pandemic economy. Interest in the sector has also been lifted by the surprise rollout of a DeepSeek AI model early this year, which spotlighted China’s push to compete in the global AI race. Brokerage calls added fuel. Goldman Sachs increased its Alibaba price target, citing an improved outlook for the company’s cloud business. Arete Research moved Baidu’s ADRs to buy from sell, highlighting the promise of its internal chip program. Contemporary Amperex Technology Co. advanced this week after JPMorgan raised its rating on the stock. Wednesday’s jump left the Hang Seng Tech Index…
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