HK tech stocks provide a glimpse into mainland’s technological progress
Illustration: Tang Tengfei/GT
The Hong Kong stock market advanced on Tuesday, with the benchmark Hang Seng Index rising 2.83 percent to close at 20,789.96 points. Overall, technology stocks have done well. The Hang Seng TECH Index jumped 5.06 percent.
The Hang Seng TECH Index represents the 30 largest technology companies listed in Hong Kong that have high business exposure to technology themes. On the second trading day for the Hong Kong stock exchange in the Year of the Snake, artificial intelligence-related stocks and semiconductor shares continued to exhibit strong momentum, financial news portal stcn.com reported.
Some brokerages have released research reports offering in-depth analysis of the Hong Kong stock market’s performance following the Chinese New Year holiday. While uncertainties persist, the general tone of these reports is cautiously optimistic, with a continued positive outlook on the prospects of technology stocks listed in Hong Kong, according to stcn.com.
In recent years, China has made remarkable strides in technological innovation. Emerging technologies such as supercomputing, artificial intelligence (AI) and big data have seen accelerated adoption, driving the rapid expansion of new industries and business models. DeepSeek, a Chinese AI start-up, recently captured global media attention. Through self-reliant innovation, the company has launched high-performance, low-cost AI products, shaking up the tech industry.
According to the Xinhua News Agency, the DeepSeek model is poised to ignite a wave of innovation and propel further advancements in global AI development.
Huatai Securities believes that DeepSeek, with its cost-effectiveness and high performance, has triggered market fluctuations, which may prompt investors to reassess the technological potential of Chinese tech companies in the AI sector and lead to a revaluation of both Chinese and US tech stocks, according to the China Securities Journal.
Kong Rong, an analyst at Tianfeng Securities, noted that the technological capabilities and overall development of China’s AI industry appear to be accelerating, and its valuations are relatively underestimated, according to a report by Sina Finance.
Some of the Chinese mainland’s leading tech companies are listed on the Hong Kong stock exchange. In the Year of the Dragon, the Hong Kong stock market saw impressive gains. The Hang Seng Index rose by 28.44 percent, while the Hang Seng TECH Index surged by 51 percent, according to chinanews.com, reflecting strong investor confidence in the growth and prospects of tech companies listed in Hong Kong.
The rise of technology stocks listed in Hong Kong provides a glimpse into the Chinese mainland’s technological progress, indirectly reflecting the advancements the country has made in the tech sector. Despite increasing efforts by the US and some Western countries to suppress and contain China’s technological development, China’s progress in this area has not slowed down.
According to the “Global Innovation Index 2024” released by the World Intellectual Property Organization, China moved up one spot to 11th place in the ranking of the world’s most innovative economies, making it one of the fastest risers over the past decade.
Furthermore, the “WIPO Patent Landscape Report on Generative AI,” published in July 2024, reveals that from 2014 to 2023, inventors based in China were responsible for over 38,000 patent applications related to generative AI, accounting for almost 70 percent of all such patents, ranking first in the world.
In response to the US AI export controls, Chinese Foreign Ministry spokesperson Guo Jiakun said in January that the US roadblock strategy of attempting to maintain its AI supremacy and to deprive developing countries, including China, of the right to make their own progress in science and development hurts the global common interest of promoting AI for good, and has triggered concerns from various quarters about a new tech Cold War by the US.
It seems that the US’ arbitrary strategies have not deterred global investors. Technological containment cannot impede China’s progress in science and technology. Innovation in technology is becoming an increasingly important driver of China’s economic growth.
The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn