FX.co ★ Broad Sector Gains Lift Hang Seng to 6-Week High as 2026 Opens

The Hang Seng Index advanced by 708 points, or 2.8%, closing at a six-week high of 26,384 on Friday, marking the first trading session of the year. This rebound from prior downturns was attributed to widespread gains across various sectors. Hong Kong's technology index rose by 3.6% following DeepSeek's publication of a report on more cost-effective AI development, which revitalized optimism surrounding the Chinese tech sector. Additionally, consumer, technology, and property stocks experienced a substantial rise after President Xi Jinping committed to implementing more proactive macroeconomic policies in 2026, aiming to sustain momentum following approximately 5% growth in the previous year. Baidu's shares climbed 8.8% amid announcements from its subsidiary, Kunlunxin, regarding plans for a Hong Kong listing. Concurrently, Hua Hong Semiconductor saw a 12.8% surge, although it later tapered off after announcing a CNY 7.6 billion private placement intended to finance new projects and settle debts. Meanwhile, Shanghai Biren Technology more than doubled its value upon its Hong Kong debut, becoming the financial hub's first listing of 2026 with a notably strong opening. Over the week, the Hong Kong markets rose by 2.0%, concluding 2025 with their best annual performance since 2017.