Hong Kong Stocks Surge: Tencent, Alibaba Rise, Gold Stocks Explode, AI Stock Plummets

Hong Kong’s stock market experienced a broad rally on Monday, February 23, 2026, driven by gains in technology and gold stocks. The Hang Seng Index rose 2.53%, while the Hang Seng Tech Index surged 3.34% by the close of trading.

The advance was widespread, with 1,192 individual stocks on the Hong Kong main board posting gains, compared to 537 declines. The positive momentum reflects a continuing, albeit uneven, recovery in investor sentiment towards Chinese technology companies.

Leading the charge were major tech players. Tencent Holdings rose 3.07%, while Alibaba Group Holding gained 3.47%. Meituan jumped 5.26%, JD.com Group increased 3.56%, and Baidu climbed 3.26%. Xiaomi Group also saw significant gains, rising 3.39%, and NetEase increased by 1.73%. The gains follow reports of Alibaba planning to revamp its main app with new artificial intelligence features, potentially challenging ChatGPT, according to reports.

The rally extended beyond the tech sector, with gold stocks also performing strongly. Tongguan Gold rose 12.58%, Chifeng Gold jumped 7.96%, Zhaojin Gold International increased 6.82%, Lingbao Gold rose 6.23%, China Gold International gained 6.14%, Zhao Jin Mining increased 5.83%, Zijin Mining rose 5.35%, and Shandong Gold increased 4.60%. This surge in gold stock prices reflects broader market trends and investor interest in safe-haven assets.

The communication equipment sector also contributed to the day’s gains, with Putian Communication Group soaring by over 30%. Changfei Optical Fibre Cable Co. Ltd. Closed up over 14%, benefiting from demand for optical fiber.

However, not all segments of the market participated in the rally. AI application concept stocks experienced a pullback, with Zhupu (DeepSeek) falling nearly 23%, wiping out 736 billion Hong Kong dollars in market capitalization. Haichit Technology Group also declined sharply, dropping over 21%, while MINIMAX-WP fell over 13%. This suggests a degree of profit-taking and reassessment within the rapidly evolving AI sector.

The positive performance in Hong Kong comes as mainland Chinese markets prepare to reopen. The FTSE China A50 futures index rose 1.2% during the day, signaling potential gains when A-shares resume trading on Tuesday, February 24, 2026.

The recent gains in Hong Kong tech stocks build on a trend that began in 2025, fueled by the integration of AI technologies. The adoption of DeepSeek’s cost-effective AI solutions by companies like Tencent, Alibaba, and Baidu has been a key driver, shifting the narrative surrounding the Chinese tech industry and boosting valuations. Analysts at Goldman Sachs have suggested that these breakthroughs could increase the fair value of Chinese shares by 15% to 20%, potentially attracting up to $200 billion in net buying.

This rally marks a reversal of fortune for Chinese tech firms, which had faced significant headwinds due to regulatory scrutiny from Beijing in recent years. The integration of AI is opening new avenues for growth and innovation, potentially boosting earnings through increased productivity, cost savings, and new revenue streams.

Recent developments also show a shift in the regional tech landscape. According to a report from Bloomberg on February 3, 2026, South Korean companies Samsung Electronics and SK Hynix surpassed Alibaba and Tencent in combined market capitalization for the first time. This shift is attributed to the growing importance of high-bandwidth memory chips, essential for AI development, and the strong demand from hyperscalers. Samsung Electronics shares have rallied 34% this year, while SK Hynix has surged about 37%, significantly outpacing the gains of Alibaba (roughly 14%) and Tencent (flat for the year).

While the AI-driven rally has been significant, its sustainability remains a key question. Broader economic challenges in China continue to pose a risk, and the volatility of the AI sector, as evidenced by the sharp decline of Zhupu, highlights the potential for corrections. However, the current momentum suggests that Chinese tech companies are adapting to the changing landscape and finding new opportunities for growth.