China’s Tech Index Surges to 4-Year High on AI Optimism

The Hang Seng Tech Index jumped 4.2% to its highest close since November 2021, fueled by Baidu's 16% rally and broad gains in Alibaba, SMIC, and JD.com. The benchmark has now notched seven consecutive weeks of advances, buoyed by easing Sino-U.S. tensions and growing conviction that China's aggressive AI investments are bearing fruit. Year-to-date, the index has soared 42%.

"Chinese tech giants are accelerating AI deployments across models, autonomous vehicles, and custom chips while demonstrating surprising monetization speed," noted Saxo Markets' Charu Chanana. With valuations still trailing U.S. peers—trading at 21x forward earnings versus Nasdaq 100's 27x—the sector is attracting renewed capital inflows after years of regulatory turbulence.

The momentum reflects China's determined push into artificial intelligence, highlighted by DeepSeek AI's surprise model launch earlier this year. Brokerage upgrades, including Goldman Sachs' bullish Alibaba call, have further ignited interest in what some see as an undervalued tech revival.