Chinese Stocks Surge as Government Targets 5% Growth and Expands AI Investment

Hong Kong and mainland markets rally on optimism from China's economic stimulus plans and advancements in artificial intelligence technology.

The Hang Seng Index closed up 3.3%, reaching its highest level since February 2022, while the Hang Seng Tech Index surged 5.4%.
Mainland indices also saw gains, with the CSI 300 Index rising 1.4% and the Shanghai Composite Index climbing 1.2%.
China's government reaffirmed its 5% economic growth target for 2025, emphasizing fiscal stimulus and looser monetary policies to counter economic challenges.
Tech giants like Alibaba and Tencent led the stock rally, with Alibaba jumping 7% following the announcement of its new AI reasoning model, QwQ-32B.
Beijing plans to issue 1.3 trillion yuan in special treasury bonds and expand local government debt issuance to support economic recovery and AI innovation.