Hong Kong stocks rise on Cathie Wood buy-in amid typhoon trading

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Hong Kong stocks rose on Wednesday, ending a two-day decline, after Chinese tech giant Alibaba announced plans to scale up investment in artificial intelligence infrastructure and got a vote of confidence from a prominent US investor, sparking a rally in the wider Chinese tech sector.

The Hang Seng Index rose 1.4 per cent to close at 26,518.65. The Hang Seng Tech Index rose 2.5 per cent. On the mainland, the CSI 300 Index rose 1 per cent and the Shanghai Composite Index added 0.8 per cent.

Alibaba rose 9.2 per cent to HK$174 on news of Cathie Wood’s investment after a four-year absence and CEO Eddie Wu Yongming’s announcement that the company would increase spending on artificial intelligence infrastructure. Semiconductor Manufacturing International, mainland China’s largest chip foundry, gained 5.7 per cent to HK$76.75. Short video platform Kuaishou added 3.8 per cent to HK$76.85.

Shares of JD.com and Meituan also rallied 3.7 per cent to HK$133 and 1.1 per cent to HK$102.10, respectively, following the Chinese market regulator issuing rules to tamp down on runaway competition in the meal-delivery arena.

Limiting gains, New Oriental Education & Technology, an online education firm, fell 1.7 per cent to HK$39.94, and toymaker Pop Mart slipped 2 per cent to HK$258.80.