Hong Kong Tech Index Surges 4% Amid Market Rally

Hong Kong's Hang Seng Tech Index rose over 4% in the afternoon session, with the Hang Seng Index and Hang Seng China Enterprises Index also increasing by nearly 2% and over 2% respectively.

The Hang Seng Tech Index, which tracks Hong Kong’s 30 largest listed technology companies, rose over 4% in the afternoon session on September 12, 2025. The Hang Seng Index and Hang Seng China Enterprises Index also increased by nearly 2% and over 2% respectively. This significant rally can be attributed to several factors, including renewed investor optimism over artificial intelligence (AI) and expectations of interest-rate cuts in China and the United States.

The Hang Seng Tech Index has been on a bullish streak since breaking above the 5,500 level in mid-July. This breakout was driven by advancements from technology heavyweights Alibaba and Baidu. Baidu released an upgraded version of its AI reasoning model X1.1, claiming significant enhancements that surpass those of DeepSeek-R1, OpenAI’s GPT-5, and Google’s Gemini 2.5 Pro. Meanwhile, Alibaba introduced its Qwen3-Max-Preview model, featuring over one trillion parameters, which outperforms its previous flagship model, Qwen3-235B. Additionally, Alibaba is reportedly developing an in-house AI processor to reduce its reliance on US-made chips from Nvidia Further upside expected for Hang Seng Tech Index^[1].

In addition to these technological advancements, the rally in Hong Kong equities was bolstered by hopes that China will cut interest rates after consumer prices fell further. According to the National Bureau of Statistics, consumer prices in China dropped 0.4% year-on-year in August, registering the first decline in three months. This weak inflation data underscores sluggish domestic demand, suggesting that the People’s Bank of China may lower borrowing costs Hong Kong Stocks Close (09.15) | Hang Seng Index Up 0.22%; Lithium Battery and Auto Supply Chain Outperform; CATL (03750) Surges Over 7% to New High^[2].

From a technical perspective, the Hang Seng Tech Index appears poised for further gains. Since June, the index has been trading in an uptrend channel, with pullbacks finding support at the 50-day simple moving average, indicating a medium-term uptrend. The price has held the previous horizontal resistance at the 5,500 level as support since the breakout in mid-July. With a breakout above the 5,800 resistance level, which has held since the end of July, the index is on track to retest the 6,195 level formed at the beginning of March this year. The Moving Average Convergence Divergence (MACD) technical indicator has consistently held above the zero line since June, suggesting upward momentum for the tech index Further upside expected for Hang Seng Tech Index^[1].

The Hang Seng Tech Index's performance was also influenced by the broader market sentiment. Lithium battery stocks, such as CATL, Ganfeng Lithium, and CALB, surged, driven by the National Development and Reform Commission and the National Energy Administration's 'Special Action Plan for Large-Scale Construction of New Energy Storage (2025-2027).' This plan proposes that by 2027, the installed capacity of new energy storage nationwide will reach over 180 million kilowatts, driving direct investment in projects of approximately RMB 250 billion. Lithium-ion battery storage will remain the dominant technology route for new energy storage Hong Kong Stocks Close (09.15) | Hang Seng Index Up 0.22%; Lithium Battery and Auto Supply Chain Outperform; CATL (03750) Surges Over 7% to New High^[2].

In conclusion, renewed investor optimism over AI, driven by new developments from tech heavyweights, and expectations of interest-rate cuts amid sluggish consumer prices, have contributed to the Hang Seng tech index’s rally. Bullish technical signals currently present for the index are likely to drive further upside, with the next target level at 6,195 points to retest the year-to-date highs.