Hong Kong Stocks Surge 1.4% Amid Optimism for Tech Sector

Hong Kong's stock market has shown a significant upward trend, with the Hang Seng Index reaching its highest level in over four months due to strong support from Beijing for the private sector and excitement surrounding Chinese tech firms, particularly after the success of AI start-up DeepSeek. President Xi Jinping's recent meeting with tech entrepreneurs emphasized the government's desire to enhance innovation and provide better market access, contributing to a bullish sentiment among investors. While Goldman Sachs upgraded its targets for Chinese equities, analysts caution that the market may be overbought and vulnerable to pullbacks, as seen in recent fluctuations of tech stocks like Tencent and Baidu. Despite the optimism, concerns about policy uncertainties and geopolitical tensions persist, leading some investors to take profits. Overall, while there are signs of a robust recovery, market analysts advise vigilance due to potential short-term negative catalysts. The tech sector continues to play a pivotal role in driving market performance amid these mixed signals.