SHANGHAI: China and Hong Kong shares closed higher on Wednesday, led by tech and property shares, as the market was fuelled by AI-driven revaluation opportunities and optimism that authorities may help indebted property developers.
China’s blue-chip CSI300 Index ended 1% higher, while the Shanghai Composite Index was up 0.9%. Hong Kong benchmark Hang Seng was up 2.6%.
Alibaba’s Hong Kong shares surged over 8%, hitting a four-month peak after the Information reported Apple is partnering with the Chinese tech giant to roll out artificial intelligence features for iPhone users in China.
The tech major’s shares traded in Hong Kong rose 2.6%.
“Technology fuelled rallies typically saw share prices rise ahead of earnings and this year, with ample liquidity and lower interest rates, we see valuation re-rating opportunities ahead for AI-related names,” said UBS strategist James Wang.
“The internet companies are likely to be longer-term beneficiaries of cheaper AI models and remain attractive given the cheap valuation and capital return initiatives on offer,” Wang said. China’s AI stocks rose 2% on Wednesday and have risen 13% this month.
Meanwhile, onshore real estate shares jumped nearly 5%, with Vanke up 10%, after media reported that Chinese authorities are exploring a plan to help the property giant plug a funding gap of about 50 billion yuan ($6.84 billion) this year. Mainland developers traded in Hong Kong also surged nearly 6%.
Global investors are starting to reassess China’s investability within the tech and AI space, as US-China competition has expanded from trade or tariffs to high-end manufacturing and AI, said equity strategists at Morgan Stanley.