Hong Kong Embraces Tech Growth with AI Investment Plans

Hong Kong is pivoting towards a technology-driven economy, with the government allocating HK$1 billion to establish an AI Research and Development Institute, as announced by Financial Secretary Paul Chan. This initiative aligns with China’s strategic goals amidst ongoing Sino-US tensions, aiming to transform the city into a hub for AI innovation. Meanwhile, Hong Kong's stock market saw a significant boost, with the Hang Seng Index rising over 3% due to renewed investor optimism in tech stocks, particularly following Alibaba's announcement of a public AI model. The surge also followed the unveiling of new AI technologies by startups like DeepSeek, signaling a resurgence in the sector. Financial analysts noted that reduced credit risks in the banking sector contributed to market confidence, with Morgan Stanley raising price targets for key banks. The overall sentiment indicates a shift in investment strategies, highlighting the growing importance of AI developments in the region.