Investing.com-- Hong Kong-listed Chinese technology stocks extended their rally on Tuesday, buoyed by President Xi Jinping's meeting with private enterprise leaders and growing enthusiasm for artificial intelligence (AI) innovations, particularly surrounding DeepSeek.
In a rare symposium held at Beijing's Great Hall of the People, President Xi addressed prominent tech entrepreneurs, including Alibaba (NYSE:BABA) Group's (HK:9988) Jack Ma, Tencent's (HK:0700) Pony Ma, and Huawei's Ren Zhengfei.
He emphasized the government's commitment to supporting the private sector amid economic challenges and escalating U.S. trade tensions.
This high-profile meeting is perceived as a strategic move to bolster confidence in China's private sector, which has faced regulatory pressures and economic headwinds. The inclusion of Jack Ma, who had been notably absent from the public eye following regulatory scrutiny, signals a potential thaw in relations between the government and tech giants.
Hong Kong-listed Alibaba shares jumped 4.4% on Tuesday, after reaching a three-year high in the previous session.
Xiaomi (OTC:XIACF) Corp (HK:1810) shares climbed nearly 6%, hitting a fresh record high level of HK$48.15.
Hong Kong-listed Baidu (NASDAQ:BIDU) Inc (HK:9888) shares gained 1.1%, while NetEase Inc (HK:9999) jumped 3%.
Tencent Holdings (OTC:TCEHY) stock rose 2.3%, while JD (NASDAQ:JD).com (HK:9618) advanced 1%.
Concurrently, domestic AI optimism has surged, largely driven by DeepSeek's advancements.
The Hang Seng Index rose by 2.1% on Tuesday, and has gained more than 14% this month.
DeepSeek, a Hangzhou-based AI startup, has rapidly gained prominence by developing cost-effective AI models that rival leading U.S. counterparts. Its open-weight models have been adopted across various sectors, including automotive, with manufacturers like BYD Co (HK:1211) and Geely Automobile(HK:0175) integrating DeepSeek's AI into their vehicles.
This widespread adoption underscores China's commitment to advancing AI technology despite facing U.S. trade tariffs and sanctions.