After a period of adjustment, the Hong Kong stock market has recently regained its momentum. The Hang Seng Index is once again approaching the 25,000-point threshold, with the Hang Seng Tech Index significantly outperforming traditional sectors. Leading companies in AI, semiconductors, new energy, and the internet are taking turns in the spotlight. For global investors, Hong Kong stocks are gradually shifting from being seen as an "undervalued market" to a market that offers both growth and value opportunities.
At the same time, as more digital asset users turn their attention to traditional financial markets, the connection between Hong Kong stocks and crypto assets is becoming increasingly close. Recently, Gate officially launched Hong Kong stock trading services, allowing users to invest directly in the Hong Kong capital market through a unified account. This provides a new channel for participating in the current Hong Kong stock rally.
Why Hong Kong Stocks Are Back in the Spotlight
Over the past year, Hong Kong stocks experienced a prolonged period of valuation compression. Whether it was internet platforms, financial stocks, or leading consumer companies, most high-quality firms traded at historically low valuation ranges.
However, starting in the second quarter of this year, market sentiment began to shift.
- Expectations for future Federal Reserve rate cuts have continued to strengthen. Global capital is once again seeking equities with growth potential, and Hong Kong stocks—being among the most undervalued major global markets—have naturally returned to the radar of institutional investors.
- Chinese tech companies are showing sustained improvements in profitability. Core internet giants like Tencent, Meituan, and Xiaomi have all demonstrated strong cash flow and earnings, providing solid fundamental support for the market.
More importantly, the Hong Kong market has become home to a large number of China’s new economy companies. From AI and large language models to new energy vehicles and the advanced manufacturing and semiconductor supply chain, an increasing number of emerging industry leaders are now key components of Hong Kong’s stock market.
As a result, this rally is not just a technical rebound—it also reflects a fundamental revaluation of future industry prospects.
AI and Tech Stocks Lead the Current Rally
If you’re looking for the strongest theme in Hong Kong stocks right now, AI is the clear answer. The global AI industry continues to grow rapidly. Whether it’s demand for computing power, large model training, or AI agent applications, all are driving sustained capital market interest in related companies.
Within the Hong Kong market, AI themes are mainly concentrated in several areas:
- AI infrastructure and computing power
- Semiconductors and advanced manufacturing
- Cloud services and internet platforms
- Smart devices and robotics supply chain
Recently, chipmakers like SMIC and Hua Hong Semiconductor have continued to attract capital inflows. At the same time, tech manufacturers such as XPeng, BYD, and Xiaomi are benefiting from expectations around AI adoption. Tencent and Alibaba represent another major theme. As platform companies with massive data and application scenarios, they are seen as key beneficiaries of future AI commercialization. The market is reassessing the growth potential of these internet giants in the AI era.
From a capital flows perspective, the tech sector has become a major driver behind the rise of the Hang Seng Tech Index.
What Sustained Southbound Capital Inflows Mean
One of the most important indicators in the Hong Kong market is southbound capital. In recent years, mainland Chinese funds have become one of the primary sources of incremental capital for Hong Kong stocks. Compared to international capital, southbound funds often have a deeper understanding of Chinese companies’ business models and industry trends, so their movements are widely regarded as a market barometer. Recent data shows that southbound capital continues to flow into Hong Kong stocks, with tech, financial, and high-dividend assets being the most popular.
This trend signals two important points:
- Valuation remains attractive: Even after the rebound, most core Hong Kong stocks still trade at lower valuations than their global peers.
- Long-term allocation demand is increasing: As global market volatility rises, more capital is flowing into Hong Kong stocks as a way to gain exposure to China’s core assets.
Historically, sustained southbound inflows have provided strong support for the market.
How Long Can the Hong Kong Stock Valuation Recovery Last?
This is a key question for many investors. From a valuation perspective, Hong Kong stocks as a whole have not yet returned to historically high levels. Most internet platform companies still trade below their historical average price-to-earnings ratios, and some leading financial and consumer firms remain at relatively low valuations. From an earnings perspective, most large companies are already in a phase of improving performance. Upgrades driven by AI, the development of the new energy supply chain, and a gradual consumption recovery could all be major drivers over the next few quarters.
Of course, the market still faces uncertainties. Changes in global interest rates, international capital flows, and the macroeconomic environment will all influence Hong Kong stock performance. Therefore, the market is more likely to see structural opportunities rather than a broad-based rally across all sectors.
From Tencent to CATL: Key Hong Kong Stock Themes to Watch
At present, there are three main themes worth focusing on:
The first is AI and tech growth: Companies like Tencent, Xiaomi, and SMIC remain in the spotlight.
The second is new energy and advanced manufacturing: Firms such as CATL and BYD are benefiting from the global energy transition.
The third is high-dividend assets: Companies like China Mobile, HSBC Holdings, and AIA continue to attract long-term capital with their stable cash flows.
From an asset allocation perspective, these three themes represent growth, manufacturing upgrades, and defensive characteristics, covering diverse investment needs across different market environments.
Gate Launches Hong Kong Stock Trading, Ushering in a New Era of Global Investment
Image source: Gate Market Page
As Hong Kong stocks regain market attention, the convenience of investment channels has become a key concern for users. On June 11, Gate officially launched Hong Kong stock trading services, further expanding its global equities offering.
After upgrading the Gate App to v8.23.5 or above, users can access Hong Kong stock trading directly through the Gate Stocks portal. There’s no need to open a separate traditional Hong Kong brokerage account or convert currency—users can invest in the Hong Kong market using USDT. The initial launch includes over 1,000 Hong Kong-listed stocks, covering core assets such as Tencent Holdings, HSBC Holdings, CATL, China Mobile, Xiaomi, Meituan, BYD, Ping An Insurance, AIA, and the Hong Kong Exchanges and Clearing.
More importantly, Hong Kong stock trading shares the same unified account system as existing US stock products. Users can manage both Hong Kong and US stock positions within a single account, enabling cross-market capital allocation and asset management. Currently, Gate Stocks supports trading for over 10,000 US stocks and ETFs, with fractional share investments as low as 0.01 shares. With the integration of Hong Kong stocks, users can now easily build a global investment portfolio spanning both the US and Hong Kong capital markets.
From a product ecosystem perspective, Gate has gradually built a complete investment chain, including Pre-IPO, direct IPO access, and stock trading, offering users multi-layered investment opportunities from pre-listing to post-listing stages.
Outlook for Hong Kong Stocks: What’s Driving the Market Now?
The Hong Kong market is currently trading on three core themes:
- Valuation recovery driven by improved global liquidity
- The AI revolution prompting a revaluation of tech companies
- Capital returning to China’s core assets due to their long-term competitiveness
For investors, while market volatility may persist, Hong Kong stocks are regaining global capital attention from both an industry trend and asset allocation perspective. As platforms like Gate continue to expand their traditional financial asset offerings, the barriers to participating in the Hong Kong market are falling. Whether you’re interested in riding the AI wave, investing in tech growth stocks, or seeking high-dividend assets, Hong Kong stocks are becoming an essential part of global asset allocation.
FAQs
What are the main drivers behind the current rise in Hong Kong stocks?
The main factors include the rising heat of the AI industry, tech stock valuation recovery, sustained southbound capital inflows, and growing expectations for global interest rate cuts.
Which sectors in the Hong Kong market are currently attracting the most attention?
AI, semiconductors, internet platforms, new energy vehicles, and high-dividend financial sectors are the top areas of focus right now.
Which stocks are supported by Gate’s Hong Kong stock trading service?
The initial launch covers over 1,000 Hong Kong stocks, including major listed companies such as Tencent Holdings, HSBC Holdings, CATL, Xiaomi, Meituan, and China Mobile.
How does Gate’s Hong Kong stock trading differ from traditional Hong Kong brokers?
Users do not need to open a separate Hong Kong brokerage account or convert to Hong Kong dollars. You can invest in Hong Kong stocks directly using USDT, and manage both Hong Kong and US stocks within a unified account system.
Are there still investment opportunities in Hong Kong stocks going forward?
Based on current valuations, industry upgrades, and capital flows, Hong Kong stocks still offer long-term allocation value. However, investors should pay attention to sector trends and market volatility, and allocate assets prudently.
