Published: 10:01, October 2, 2025 | Updated: 20:40, October 2, 2025
Hong Kong’s stock market roars as HSI exceeds 27,000
By Gaby Lin in Hong Kong
An electronic stock board showing Hong Kong's stock indices is seen at the Exchange Square, which houses the Hong Kong Stock Exchange, in Central, Hong Kong, Aug 20, 2025. (EDMOND TANG / CHINA DAILY)

Stock trading in Hong Kong resumed on a bullish note and reached a four-year record high on Thursday, as the equity market’s benchmark Hang Seng Index (HSI) surged by over 431 points following the Oct 1 National Day break, led by strong gains in the semiconductor sector.

The HSI jumped 1.61 percent to close at 27,287 on the first trading day of October, after having reached an afternoon peak of 27,381.84, the highest level in four years. Full-day turnover exceeded HK$222.4 billion ($28.6 billion) despite the absence of southbound capital flows from the Chinese mainland.

The rally was driven by robust performance in semiconductor stocks, with investors optimistic about the sector’s prospects following reports that Chinese technology giant Huawei is ramping up production of its flagship 910C Ascend chip, an artificial intelligence (AI) chip considered to be a significant challenger to Nvidia.

READ MORE: Hong Kong equity market revives on policy, improved outlook

Semiconductor Manufacturing International Corp stood out as the day’s best-performing constituent, surging 12.69 percent to a record high. Hua Hong Semiconductor Ltd also posted strong gains, jumping more than 7.1 percent to HK$85.7 per share. Other shining sectors included solar, gold, autos, and pharmaceuticals.

Speaking at the Milken Institute Asia Summit 2025 in Singapore on Wednesday, Kevin Sneader, Goldman Sachs' president for Asia-Pacific ex-Japan, noted that Asia has emerged as a hotspot for capital inflows over the past nine months, as global investors diversify beyond the United States.

China’s equity rally since last year has been primarily buoyed by domestic investors and interest in the technology sector, with international funds now starting to take another look at the country, he added.

Several leading technology stocks listed in the special administrative region’s market rallied, with prices of Tencent, Kuaishou and Alibaba Group all standing high.

Earlier, JPMorgan Chase raised its price target for Alibaba’s Hong Kong-listed shares by nearly 45 percent, projecting HK$240 per share by the end of 2026. JP Morgan analysts led by Alex Yao cited improved prospects for the group’s cloud business and greater synergy between its AI and e-commerce operations as key drivers for the upgrade. Alibaba’s shares soared to a three-year high, closing Thursday at HK$183.1 per share.

READ MORE: Hong Kong stocks market capitalization surges 33% in H1

The Hang Seng China Enterprises Index, the barometer of mainland-based company performances, on Thursday edged up more than 169 points at 9,724, while the Hang Seng Tech Index, the city’s technology stock gauge, increased 3.36 percent to end at 6,682 points.

 

Contact the writer at gabylin@chinadailyhk.com