Li Auto, the Chinese electric vehicle maker, saw its shares surge 5.64% on Thursday in a broad rally of Hong Kong-listed technology stocks.
The rally was fueled by optimism surrounding Chinese artificial intelligence (AI) startups like DeepSeek, which has prompted investors to reassess the valuations of Chinese tech companies that have been trading at a steep discount compared to their US counterparts.
The Hang Seng Tech Index, which includes Li Auto, advanced 2.6% on Thursday as investors loaded up on Chinese tech stocks like BYD, Kingsoft Cloud, and Horizon Robotics, following DeepSeek's success in AI development. Money managers believe the valuation gap between Chinese and US tech giants is narrowing, driving the surge in Chinese tech stocks.
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