Hong Kong’s DeepSeek-fuelled tech stocks back in bull market, ignoring interest rate fears

Hong Kong stocks rose on Thursday to refresh a four-month high, as a key gauge of Chinese technology stocks entered the bull market territory, offsetting waning bets on interest-rate cuts by the Federal Reserve after a hot inflation reading.

The Hang Seng Index advanced 1.5 per cent to 22,191.01 at the noon break, heading for the highest close since October 7. The Hang Seng Tech Index, which is at the centre of the run-up driven by the DeepSeek mania, also gained 1.5 per cent. It rose by as much as 2.3 per cent, briefly surpassing a September high after China announced a broad rescue package to prop up the stock and property markets.

On the mainland, the CSI 300 Index and the Shanghai Composite Index both slipped 0.1 per cent.

Alibaba Group Holding advanced more than 3 per cent to extend its biggest gain in more than two years. Sunny Optical Technology Group rallied after net income more than doubled in 2024. Chipmaker Semiconductor Manufacturing International Corp (SMIC) rose after Goldman Sachs upgraded its rating to buy.

US money manager Invesco joined the chorus on the DeepSeek trade, saying that the success of the Chinese start-up’s AI model would bolster the appeal of the nation’s tech stocks that traded at depressed valuations relative to their global peers.