The Hang Seng soared 388 points or 1.8% to end at 21,522 on Monday, rising for the third session and notching its highest level since early October amid widespread sector gains. Investor sentiment improved as concerns about China's deflation notably eased after Sunday's data showed consumer inflation hit a five-month high due to solid holiday spending. The upbeat data signaled resilience in domestic demand, helping to support market optimism.
Hang Seng climbs by 1.8% at close
In addition, worries about the ongoing trade row between China and the US waned, with many traders viewing Washington’s latest tariff threats as negotiation tactics rather than immediate policy changes. Hopes for improved US-China trade relations lifted the outlook for major exporters and technology firms, further boosting risk appetite.
Tech sector leads the gains
The tech index climbed over 2.5% on continued optimism around China's AI and semiconductor industries. Meanwhile, China’s three largest telecom operators—China Mobile, China Unicom, and China Telecom—announced collaborations with DeepSeek, a rising AI firm, reinforcing expectations for stronger innovation and investment in the sector. Investors also welcomed the Hong Kong Monetary Authority’s (HKMA) plan to auction CNY 1.5 billion in two-year government bonds starting February 13, offering an interest rate of 2.04% per year, which could attract capital inflows into the region.
Meitu among best performers
Among individual stocks, Meitu, an online advertising company, jumped 3.9% on a robust earnings outlook, while Meituan surged 5.4% amid improving consumer sentiment. Xiaomi Corp. climbed 3.1%, benefiting from strong smartphone demand, and Semiconductor Manufacturing International Corporation (SMIC) advanced 2.5% as investors bet on increased domestic chip production. Financials and property developers also saw gains, reflecting improved confidence in China’s economic trajectory.
