Published on 07/08/2026 at 05:07 am EDT
(Reuters) - Hong Kong stocks posted their best gain in three months on Wednesday as beaten-down tech shares drew dip-buyers back from global peers, while mainland shares dipped to a one-month low.
* Hong Kong's benchmark Hang Seng Index rallied 3% to a three-week high of 24,199.46, in its best single-day gain since April 8. The Hang Seng Tech Index rallied 5%.
* Market heavyweight Alibaba surged 12.2%, its best gain since September 2025. Knowledge Atlas Technology rallied more than 13% despite the lock-up expiry.
* Onshore markets gave up earlier gains despite the tech boost as most other sectors dragged. The blue-chip CSI300 index was down 0.8% and the Shanghai Composite index dropped 0.5%, both at one-month low.
* The CSI Semiconductor Index added 2% and the CSI AI Index jumped 1.4%. However new energy vehicle, rare earth and defense sectors were down 2.8% to 5.3%, dragging broader markets lower.
* The Chinese tech rally defied a chip share sell-off in other regional markets and overnight in the U.S. as investors rotated into cheaper companies and upped the ante on China's tech progress.
* Chinese authorities have held meetings with top tech firms over the past month about potentially restricting overseas access to the country's most advanced AI models. Meanwhile, DeepSeek is developing its own AI chip that could reduce its reliance on Nvidia and Huawei.
* "It's a technical rebound. The chip rally in other markets is starting to lose steam and investors who have been cutting China and Hong Kong exposures to fund those trades are now taking profits and rotating back to cheaper companies," said Jason Chan, strategist at Bank of East Asia.
* Optimism about China's AI progress and domestic substitution for chips is also helping sentiment, he said. "I think this rebound has more legs to run this quarter."
(Reporting by Jiaxing Li in Hong Kong; Editing by Sonia Cheema)

Sumber : Reuters