The Chinese stock market saw a surge in tech stocks after the holidays, with the STAR 50 Index (China SSE Science and Technology Innovation Board 50 Index) jumping 3.5%! But does this mean a full-fledged tech bull market is on the horizon? Let’s break it down.

1. Hong Kong’s Tech Stocks Lead the Rally (Up 5.06% in a Day!)

The Hong Kong stock market kicked off the post-holiday trading session with a bang, outperforming global markets. By the close, the Hang Seng Index rose 2.83%, and the Hang Seng China Enterprises Index gained 3.51%. But the real star? The Hang Seng Tech Index, which soared 5.06% in just one day!

2. A Tech-Driven Bull Market?

The rally was led by semiconductor giants Hua Hong Semiconductor (+12.66%) and SMIC (+8.47%). What’s fueling this surge?

• Breakthrough in China’s 5nm chip technology
• China’s tech sector playing catch-up after missing previous global tech rallies

With the global tech race heating up, Chinese tech stocks are finally seeing their long-overdue gains.

3. U.S. Market Impact – Chinese Stocks Shine as the Dollar Weakens

Last night, the U.S. dollar index fell 0.41%, stabilizing U.S. markets after recent losses. But an interesting shift is happening:

• China’s AI giant Deep Seek is making waves with its cost-effective and high-performance AI models, shaking investor confidence in U.S. tech stocks.
• The “Magnificent Seven” U.S. tech stocks struggled, while Chinese stocks surged 3.33%, outpacing the broader U.S. market.

4. Mixed Performance in the A-Share Market

While global tech stocks soared, China’s A-share market showed mixed trends:

• The A50 futures index fell sharply after the opening, dropping 2% intraday due to ongoing trade tensions.
• However, tech stocks remained strong, triggering a wave of limit-up gains.
• By midday, the Shanghai Composite Index slipped 0.36%, while the Shenzhen Component Index and ChiNext Index edged up 0.44% and 0.50%.
• The STAR 50 Index surged 3.50%, driven by tech stocks.

5. Market Sees Heavy Trading Volume

Despite mixed index movements, investor enthusiasm for tech stocks was undeniable.

• Trading volume surged to RMB 131.1 billion within just two hours, far exceeding pre-holiday levels.
• Total turnover for the two markets reached RMB 865.1 billion.
• While a broad market rally seems unlikely, tech stocks are proving to be the main driver of gains in 2025.