Here’s why the top Hang Seng Tech index stocks are surging

February 21, 2025 02:14 AM PST | By Invezz

Top Hang Seng Tech Index stocks are surging

PDD Holdings stock price has staged a strong comeback, and is about to form a golden cross as investors flocked back to Chinese technology companies. It soared to a high of $130 on Friday, the highest point since October last year.

PDD Holdings stock price surge has mirrored that of other Chinese technology companies. Alibaba stock price soared by over 14% in Hong Kong and reached its highest level since 2021. BABA has surged by 120% from its lowest level in 2024.

Xiaomi, on the other hand, has soared in the last eight straight months and moved to a record high. Tencent Holdings stock price soared to H$520, a record high.

The other notable companies in the index are Meituan, JD, Baidu, NetEase, and Lenovo have all done well this year.

Why Hong Kong tech stocks have jumped

There are a few reasons why Hong Kong’s technology stocks have surged this year. First, there are signs that Beijing has ended its war against giant tech companies. Just this week, President Xi Jinping met with executives from the biggest tech companies in the country as a way of patching relations.

Beijing hopes that Chinese technology companies will continue growing and offer counterbalance to America’s technology juggernauts like Amazon, Meta Platforms, and Microsoft. It also hopes that the firms will continue employing more Chinese at a time when youth unemployment rate has risen.

The Hang Seng Tech index has also jumped because of the recent breakthrough made by DeepSeek. DeepSeek claims to have used normal technology like semiconductors, disrupting the existing status quo where firms like OpenAI are spending billions of dollars on AI infrastructure.

Many Chinese firms are also investing in AI. Alibaba stock price surged on Friday after the company pledged to invest aggressively in AI in the next three years. The company also announced that it will be Apple’s AI partner in China.

Further, the biggest Hang Seng Tech index constituent companies have announced strong financial results.

For example, the most recent results showed that PDD Holdings revenues jumped by 44% to $14.3 billion in the third quarter. Its operating profit soared by 46%, while net profit soared to $3.55 billion.

Xiami, China’s equivalent to Apple, also had strong results as its third quarter revenue rose by 30% to RMB 92.5 billion. This explains why the stock has jumped as the firm incorporated artificial intelligence in its operations.

Hang Seng Tech Index analysis

Hang Seng Tech Index chart by TradingView

The weekly chart shows that the Hang Seng Tech index has done well in the past few weeks. This rebound happened after the index formed a symmetrical triangle between 2023 and late 2024. The stock’s rebound happened after the two lines neared the confluence level.

The Hang Seng Tech Index has now soared above the key resistance level at H$5,437, its highest swing in October last year. It has also jumped above the 38.2% Fibonacci Retracement level. Therefore, the stock will likely keep rising as bulls target the 50% retracement point at H$6,837, the 50% retracement point.

The post Here’s why the top Hang Seng Tech index stocks are surging appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content) is a service of Kalkine Media LLC., having Delaware File No. 4697309 (“Kalkine Media, we or us”) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.