1. U.S. Stocks Mixed, Chinese Stocks in the U.S. Declined
Last night, major U.S. stock indices saw modest gains of 0.71%, 0.19%, and 0.39%. However, tech stocks showed a mixed performance. Google shares dropped sharply due to higher-than-expected AI investments—Google A fell by 7.29% and Google C by 6.94%. AMD (Advanced Micro Devices) lost 6.27%, while Tesla declined by 3.58%. Meanwhile, U.S.-listed Chinese stocks struggled, falling by 1.97%.
2. Hong Kong Tech Stocks Show Strength
Despite the drop in U.S.-listed Chinese stocks, Hong Kong’s stock market remained resilient. Normally, Hong Kong stocks closely follow the performance of Chinese stocks in the U.S., but today, they moved in the opposite direction. The Hang Seng Index and the Hang Seng China Enterprises Index climbed by over 0.5% by midday, while the Hang Seng Tech Index surged over 1.5%.
3. China’s Stock Market Sees Broad Gains
While China’s stock indices fell yesterday, tech stocks actually performed well. Today, the market fully rebounded, driven by strong tech sector gains. By midday, the Shanghai Composite Index rose 0.76%, the Shenzhen Component Index gained 1.43%, while the ChiNext Index and the STAR Market Composite Index jumped 2.09% and 2.59%, respectively.
4. Market Sentiment is Picking Up
Trading volume continues to surge. Yesterday, the market saw a sharp increase in trading activity, with an additional ¥171.7 billion ($24 billion) in volume. Today, morning trading alone added another ¥79.3 billion ($11 billion), bringing total morning turnover to ¥944.4 billion ($130 billion). This massive increase in liquidity suggests that investors are actively buying the dip, signaling renewed confidence. It also aligns with recent regulatory promises to attract long-term capital into the market before the Lunar New Year.
5. Tech Stocks Lead the Rally
Out of over 5,000 stocks traded, 4,070 saw gains, while only 1,095 declined. Only 55 stocks fell more than 3%, whereas 879 stocks gained over 3%. Tech stocks dominated the top-performing sectors—11 out of 56 industry groups were led by tech, each rising more than 2%. The electrical equipment sector led the way with a 4.56% gain, followed by semiconductors at 3.52%.
With strong capital inflows and government support, the market is preparing for a spring rally. The upcoming 2025 policies are expected to be even more favorable than in 2024. As these policies take effect, investors can look forward to a more optimistic market in the months ahead.