Hong Kong stocks set for strongest week in over a year on China internet gains
The Hang Seng Index has advanced nearly 5 per cent this week
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[SHANGHAI] Hong Kong stocks rose on Friday, headed for their best weekly performance in over a year, as sentiment toward Chinese internet companies brightened, while mainland Chinese shares also headed for weekly gains fuelled by a rally in chip stocks.
China’s blue-chip CSI300 Index rose 0.5 per cent by the lunch break, while the Shanghai Composite Index gained 0.8 per cent. Hong Kong benchmark Hang Seng was up 1.9 per cent.
The Hang Seng Index has advanced nearly 5 per cent so far this week, set to log its biggest weekly gain since March 2025. The CSI300 was on track to end the week 1.2 per cent higher.
The Hang Seng Tech Index has climbed 14 per cent from a 1-1/2-year low hit in June, as investors rotate out of hardware stocks and into lower-valuation names.
The index has risen 8 per cent this week, with tech majors listed in Hong Kong climbing 2.5 per cent on Friday. Alibaba shares added nearly 4 per cent, while Tencent edged down 0.5 per cent.
The upside thesis for China’s internet sector remains far from certain, UBS analysts said in a note, adding that while positives from expectations laid out in Alibaba’s June quarter preview have helped pull the sector back from extreme pessimism, further gains likely require additional confirmation.
Opportunity cost could re-emerge as a limiting factor if the AI hardware theme regains momentum, the analysts said.
Onshore, the tech-focused STAR50 Index edged down 0.4 per cent, though it was still up 10 per cent this week, outperforming South Korea’s Kospi, which fell 5.6 per cent over the same period.
Upbeat sentiment in Chinese chips and AI supply chain stocks this week was fueled by anticipation building around major memory chip maker Changxin Memory Technologies’(CXMT) listing.
Consumer staples and healthcare shares led gains onshore, up 2.4 per cent and 3.1 per cent, respectively. Semiconductor shares edged down 0.7 per cent. REUTERS
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