Tech shares drive Hong Kong and China stocks higher

Hong Kong and China Gas

05/06/2025 05:18

SHANGHAI, June 5 (Reuters) - Hong Kong and China stocks rose on Thursday, led by tech and artificial intelligence shares, as analysts said Hong Kong-listed tech firms remain under-represented in global AI investment portfolios.

** China's blue-chip CSI300 Index .CSI300 and the Shanghai Composite Index .SSEC both edged up 0.1% by the lunch break. Hong Kong benchmark Hang Seng .HSI was up 0.4%.

** Hong Kong's equity market offers strategic value for global investors, serving as a key option for diversifying portfolios and navigating the ongoing shift away from the U.S. dollar, Huatai analysts said in a note.

** The analysts said technology remains a central investment theme. "As future gains in global productivity are expected to hinge on advances in artificial intelligence, the companies best positioned to lead this race are largely concentrated in the U.S. and Hong Kong," they said, adding that Hong Kong remains under-allocated.

** Tech shares .HSTECH traded in Hong Kong were up 0.9%, tracking gains in Chinese ADRs listed in New York overnight, while onshore tech shares .CSIASITI climbed 1.0%.

** China's services activity expanded at a slightly faster pace in May, with new orders growing more quickly than in April, though new export orders declined due to uncertainty stemming from U.S. tariffs, a private sector survey showed on Thursday.

** The CSI Rare Earth Index .CSI930598 rose 0.7%, after a group representing auto suppliers in the United States called for immediate action to address China's restricted exports of rare earths, minerals and magnets, warning the issue could quickly disrupt auto parts production.

 (Reporting by Shanghai Newsroom; Editing by Janane Venkatraman)

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