HSI surges 2.4% to 24,057 as Alibaba, Tencent lead tech rally

Hong Kong's Hang Seng Index surged 2.4% to 24,057 at midday, its biggest single-session gain in months, as technology heavyweights Alibaba and Tencent led a broad rally.

"The breadth of today's move suggests genuine buying interest rather than short-covering, with the tech index outperforming the broader market by nearly 200 basis points," said Hao Hong, chief strategist at Bocom International.

The Hang Seng Tech Index jumped 4.3% to 4,702, while the Hang Seng China Enterprises Index added 3.1% to 8,009. Alibaba Group (9988.HK) climbed 8.1% to HK$103.6, Xiaomi Corp (1810.HK) rose 5.6% to HK$24.4, and Tencent Holdings (0700.HK) gained 3.1% to HK$475.4. Semiconductor Manufacturing International Corp (0981.HK) advanced 7.6% to HK$79, while Kuaishou Technology (1024.HK) added 6.8% to HK$43.22.

The rally marks a sharp reversal for the HSI, which had fallen more than 10% this year after a death-cross pattern and persistent selling in Chinese tech names. The move brings the index back toward the 24,000 level, a key psychological threshold that, if held, could signal a broader recovery in Hong Kong equities.

The gains were broad-based, with only one HSI constituent — WH Group (0288.HK) — trading lower, falling 6.4% to HK$7.76. Ping An Insurance (2318.HK) added 3% to HK$53.85, while Meituan (3690.HK) rose 1.7% to HK$79.7. Among financials, Bank of China (3988.HK) gained 3.5% to HK$4.99, China Construction Bank (0939.HK) rose 4% to HK$8.14, and ICBC (1398.HK) added 3.7% to HK$6.73.

Lenovo Group (0992.HK) was the standout performer among HSI constituents, surging 9.5% to HK$22.86, extending its year-to-date gain to 127%. The stock has been driven by surging demand for AI servers, mirroring gains at global peers Dell and HP.

The rally tracked a positive session on Wall Street, where the Dow Jones Industrial Average closed at a record high of 52,900 on Friday after softer-than-expected June jobs data fueled expectations of Federal Reserve rate cuts. The S&P 500 edged up less than one point to 7,483, while the Nasdaq Composite fell 0.8% as semiconductor stocks retreated.

In regional markets, Japan's Nikkei 225 rose 1.5% and South Korea's Kospi surged 5.8% on Friday, supported by strength in memory-chip stocks. The CSI 300 on mainland China added 1.2%.

This article is for informational purposes only and does not constitute investment advice.