Hong Kong Tech Stocks Rally on China AI Optimism
Hong Kong-listed technology and artificial intelligence shares rose sharply on Monday as investors focused on China’s growing presence in generative AI.
Sentiment improved after Moonshot AI launched its latest large language model. Reports of potential public listings from Moonshot AI and DeepSeek also supported the sector.
The Hang Seng TECH Index gained around 3%, while the broader Hang Seng Index advanced approximately 2%.
Moonshot AI Launches Kimi K3 Model
Beijing-based Moonshot AI unveiled its Kimi K3 large language model on Friday.
The company said the open-weight model can compete with leading global artificial intelligence systems. The announcement renewed investor enthusiasm for China’s domestic AI industry.
The launch came despite a sharp decline in U.S. semiconductor and AI stocks during the previous week.
Moonshot AI IPO Reports Boost Sentiment
Investors also reacted to reports that Moonshot AI may be preparing for an initial public offering in Hong Kong.
The potential Moonshot AI IPO could reportedly take place within six months. Interest in the listing increased after the positive reception for the Kimi K3 model.
The reports added to expectations that more Chinese AI companies could enter public markets.
Semiconductor Shares Lead the Gains
Chinese semiconductor stocks were among the strongest performers during Monday’s session.
Shares of Semiconductor Manufacturing International Corporation rose approximately 4.5%, while Hua Hong Semiconductor gained more than 6%.
The advances reflected expectations that stronger domestic AI development could increase demand for locally produced chips and computing infrastructure.
Alibaba, Meituan and JD.com Rise
Major Chinese internet stocks also moved higher.
Meituan shares gained around 4%, while JD.com advanced approximately 3%.
Alibaba shares jumped more than 5% after the company released a preview of its latest flagship AI model, Qwen Max 3.8.
The launch highlighted the intensifying competition among Chinese technology companies in the rapidly developing artificial intelligence market.
DeepSeek IPO Plans Attract Investor Attention
Investor confidence also received support from reports that DeepSeek is preparing for a mainland China IPO.
The Hangzhou-based AI startup reportedly completed a new fundraising round and is seeking additional capital before a planned listing.
Reuters previously reported that DeepSeek was targeting a valuation of approximately 500 billion yuan, equivalent to about $74 billion.
A successful DeepSeek IPO could become one of the most closely watched technology listings in China.
Rival Chinese AI Stocks Come Under Pressure
Not all Chinese AI companies benefited from the positive market sentiment.
Shares of rival startups Zhipu AI and MiniMax each fell more than 10%.
Both companies had already suffered sharp declines following the
