HK:3115.HK:Hang Seng Tech Index

The Hang Seng Tech Index, which tracks 30 of Hong Kong’s largest technology-focused companies, broke out above the 5,500 level in late July, snapping a period of underperformance against the broader Hang Seng Index.

The rally comes as Beijing pledged to rein in price wars and address overcapacity across sectors including solar, electric vehicles, and online food delivery. Regulators called on HK:9988.HK:Alibaba, HK:3690.HK:Meituan, and HK:9618.HK:JD.com to maintain rational competition as aggressive discounting hit profitability.

Optimism also surged after US:NVDA:Nvidia announced plans to resume supplying its H20 AI chips to China. The move is expected to ease a key bottleneck for local AI players, benefiting major buyers such as HK:9988.HK:Alibaba and HK:0700.HK:Tencent, who rely on the chips to power large-scale AI models more affordably than U.S. peers.

Southbound capital inflows added further momentum, with mainland investors channeling HK$2.7 billion into Hong Kong-listed tech stocks on July 22, pushing 2025’s total inflows to HK$800 billion, nearing 2024’s record of HK$808 billion.

Technically, the index’s breakout from a 5,000–5,500 wedge pattern, coupled with expanding Bollinger Bands and strengthening MACD momentum, signals continued upside. Analysts are eyeing 6,000 as the next key target — a retest of this year’s highs.

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