Hong Kong Stocks Surge over 3% Amid Tariff Relief and China’s Strong Support for Tech Giants
Hong Kong’s stock market experienced a remarkable surge on Friday, with the Hang Seng Index jumping by 3.69%, or 805.96 points, closing at 22,620.33.
This rally, which outpaced global markets, was driven by a combination of relief over US President Donald Trump’s latest tariff timeline and renewed optimism surrounding China’s potential backing of its private sector, particularly in tech.
The market’s positive momentum was further fueled by a report from Bloomberg revealing that China had invited high-profile entrepreneurs, including Alibaba co-founder Jack Ma, to meet with top government officials.
This move sparked hopes of greater support for the country’s private sector and bolstered investor confidence.
Trump’s announcement earlier this week that he planned to impose fresh tariffs on key trading partners initially rattled markets. In an interview, he lamented that US allies, including the European Union, were even more “brutal” in their trade dealings than adversaries, suggesting a fierce stance on international commerce.
However, the mood lightened significantly when US Commerce Secretary nominee Howard Lutnick indicated that a detailed review of which goods would be targeted would be completed by April 1, with the new tariffs potentially starting soon after. This timeline offered a measure of clarity and reassured investors, providing a welcome break from ongoing trade tensions.
Tech stocks led the charge in Hong Kong, propelled by the country’s growing artificial intelligence (AI) ambitions.
The announcement of DeepSeek, a Chinese startup, which unveiled a new chatbot rivaling those of US tech giants at a fraction of the cost, has ignited a fierce competition in the AI sector, giving a fresh boost to Chinese tech firms.
Alibaba, which has already gained over 40% in 2025, saw an additional 6.3% rise, fueled further by news that the company’s AI technology would be integrated into Apple’s iPhones in China.
This collaboration signals Alibaba’s growing influence in both domestic and global tech ecosystems.
Market heavyweights JD.com and Tencent also experienced impressive gains, rising more than 7% each.
The surge reflects the market’s confidence in China’s tech giants, which are increasingly seen as pivotal players in the global race for AI dominance.
The combination of easing tariff concerns and the positive momentum in China’s tech sector has transformed investor sentiment, creating a perfect storm of optimism for Hong Kong stocks. As the market continues to react to these developments, all eyes will remain on China’s next moves and how they could further reshape the global economic landscape.
