Hong Kong-listed Chinese tech stocks rallied Tuesday after President Xi Jinping met with private sector leaders, including Alibaba’s Jack Ma, Tencent’s Pony Ma, and Huawei’s Ren Zhengfei, at Beijing's Great Hall of the People. Xi reaffirmed government support for private enterprises amid economic challenges and U.S. trade tensions, boosting investor confidence.
Jack Ma’s presence, following a prolonged absence due to regulatory scrutiny, signaled a potential easing of government pressure on tech giants. Alibaba shares surged 4.4% after hitting a three-year high, while Xiaomi climbed nearly 6% to a record HK$48.15. Baidu gained 1.1%, NetEase rose 3%, Tencent advanced 2.3%, and JD.com added 1%.
AI innovation, particularly from DeepSeek, further fueled the market's momentum. DeepSeek, a Hangzhou-based AI startup, has gained recognition for cost-effective AI models that rival top U.S. firms. Its open-weight models are widely adopted across industries, including automotive, with BYD and Geely integrating DeepSeek's AI into vehicles.
The Hang Seng Index rose 2.1% Tuesday, marking a 14% gain this month. DeepSeek's rapid growth highlights China’s commitment to AI advancements despite U.S. trade sanctions, driving optimism in the sector.