Chinese Stocks Surge on AI Optimism Amid Economic Challenges
Hong Kong-listed Chinese stocks continued their upward trajectory Friday, spurred by investor confidence in the nation's growing artificial intelligence capabilities.
* The Hang Seng China Enterprises Index (HSCEI) climbed as high as 2.2%, near its October peak after government stimulus measures.
* Tech giants Xiaomi, Tencent, and Meituan led the rally, with the CSI 300 Index (000300) gaining 0.2%.
* The rise in AI stocks has overshadowed concerns about trade tensions with the US and a sluggish economic recovery.
* Deutsche Bank has dubbed China's tech advancements a "Sputnik moment," while Goldman Sachs reports hedge funds are actively purchasing Chinese shares.
* Bulls anticipate further stimulus from the upcoming Two Sessions in March, sustaining market momentum.
* The HSCEI has risen over 11% year-to-date, among Asia's top performers, closing in on its February 2022 high.