Hong Kong-listed technology stocks are showing fresh signs of acceleration, supported by market heavyweights’ upbeat earnings and sustained capital inflows from the Chinese mainland and the Middle East, analysts said.
Tencent Holdings on Wednesday reported full-year revenue for 2025 at 751.8 billion yuan ($109.34 billion), up 14 percent from a year earlier, while gross profit rose 21 percent to 422.6 billion yuan.
“We sustained healthy growth rates in 2025, as AI capabilities improved our ad targeting and supported more engagement with our games, and as our cloud business delivered improving revenue growth and profit at scale,” the internet giant said.
A day earlier, cloud software provider Kingdee said its revenue in 2025 rose 12 percent to 7.01 billion yuan. The company swung to a net profit of 92.9 million yuan, after reporting a loss in 2024.
Chinese e-commerce and tech bellwether Alibaba, which is set to release its annual results on Thursday, continues to draw investor attention amid optimism over its expanding AI capabilities and cloud momentum.
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Buoyed by this outlook, southbound investors — mainland buyers using the Stock Connect program — recorded net inflows exceeding HK$1.5 billion ($191.37 million) into Alibaba on Wednesday, driving the stock up 2.3 percent in Hong Kong trading.
On Wednesday, the Hang Seng Tech Index, which tracks the 30 largest technology companies listed in Hong Kong, edged up by 0.01 percent, while the benchmark Hang Seng Index rose 0.61 percent to close at 26,025.42.
Kingdee surged 5.7 percent, followed by Hua Hong Semiconductor, which gained more than 3.8 percent. Tencent added 0.09 percent.
In addition, investors have shown a strong appetite for Hong Kong equities this year. According to data from financial services provider Wind, southbound investors have poured more than HK$190 billion into Hong Kong stocks so far this year. Net inflows were recorded in 37 of the past 46 trading days.
Foreign investors are returning as well. Brokerage firm GF Securities said actively managed global funds have posted seven consecutive weeks of net inflows into the Chinese mainland and Hong Kong markets, the longest streak since February 2023.
The asset manager said compared with sharp declines in other major Asian benchmarks, the Hang Seng Tech Index showed resilience during global market volatility triggered by Middle East tensions this month, as it dipped briefly before a quick rebound.
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Citi said in a research report that instability in the Middle East could prompt investors to reassess asset allocation, potentially driving capital flows toward “neutral” financial hubs such as Hong Kong and Singapore. The bank expects Hong Kong to be particularly well-positioned to attract inflows, thanks to its low-tax regime.
According to China Galaxy Securities, average daily turnover on the Hong Kong exchange rose to HK$341.6 billion in the week following the beginning of the Middle East conflict, an increase of HK$99.7 billion from the previous week and the highest weekly level in more than six months.
Contact the writer at irisli@chinadailyhk.com
