Hong Kong stocks climb to four-year high on AI optimism, TikTok deal progress

Sep 17, 2025, 11:25 GMT+7
(Reuters) - Hong Kong shares rallied to their highest level in four years on Tuesday, buoyed by technology stocks, as confidence in China's artificial intelligence capabilities and signs of progress in a potential deal involving TikTok lifted appetite for risk assets.
** Mainland Chinese stocks hovered near a 3-1/2-year peak.
** China's blue-chip CSI300 Indexwas up 0.6% by the lunch break, while the Shanghai Composite Indexgained 0.4%. Hong Kong's benchmark Hang Seng Indexwas up 1.4%.
** Tech majors, which traded in Hong Kong,jumped 3.5% following an overnight rally of their counterparts in New York.
** Baidusurged nearly 16% to its highest level since October 2023. Shares of Alibabawere up 5% at their strongest point since November 2022.
** A number of key developments across AI infrastructure layers in China have been noteworthy, including renewed narratives around the AI infrastructure layer and new Chinese AI model launches, Goldman Sachs' analysts said in a note.
** The investment bank lifted Alibaba's 12-month target price to HK$174, assuming higher cloud growth based on its latest AI full-suite offerings and resilient computing demand.
** Media reported last week that Alibaba and Baidu had started using internally designed chips to train their AI models, partly replacing those made by Nvidia.
** Sentiment was further lifted as U.S. President Donald Trump announced on Tuesday an agreement between Washington and Beijing to keep TikTok operating in the United States.
** The CSI Semiconductor Material & Equipment Thematic Index rose 2.6%, with chip giant SMIC shares listed onshore up 6.6%.
** Consumer-related shares showed a muted response after China on Tuesday unveiled measures to boost services consumption, pledging to further open sectors such as internet and culture and to encourage the hosting of international sports events

Sumber : Reuters