By the summer of Zhen and Jiaxing Li
Hong Kong (Reuters) -The apparent breakthrough of China in AI and rapprochement with tech giants has sent Hong Kong -shares and internet giants, but the buyers behind it are volatile and brokers say that global investors are on their care for large bets while the markets swing wildly.
Hang Seng van Hong Kong (^HSI) is curled back of a series of lean years to fight with the German Dax as the best -performing market in the world for the year so far, with a profit of 13% and 13.1% respectively, respectively, respectively, for an increase of 4% for the S&P 500 (^GSPC).
Hong Kong Tech shares have risen 31% since mid-January to be high on Monday for three years, while President Xi Jinping sat down with top technical leaders in Beijing.
Prices turn around while investors searched photos and images of the meeting for the faces of top bosses neatly underline the feverish speculation and the degree of hope behind the rally.
Trading also illustrated what an adage has become to invest in China in recent years, that the biggest price goes to the earliest movers, especially if they can come out as soon as the euphoria starts to fade.
“Just like with movements in the past two years in HK/China, it is very driven (and volatile) – a trade market,” said Wong Kok Hoonong, head of the sale of shares at Maybank.
“Hedge funds or the more centric funds of Hong Kong-China are well aware of the dangers of not coming in from the beginning.”
Data from brokers seem to show that this is exactly who buys.
CICC estimates that cumulative flows in the south – that is, have reached by investors on the mainland – HK $ 26.6 billion ($ 3.4 billion) since the Moon -New Year’s holiday at the beginning of February, on the same footing hurry In September.
A comment about Morgan Stanley about the positioning of the Hedgefonds showed net exposures in the vicinity of their highest in a year, with buyers usually in Asia and long positions instead of covering short bets.
“Hot money has been running the market in the last two weeks,” said Steven Leung, who treats institutional customers at Brokerage Uob Kayhian in Hong Kong, referring to funds that are checked by investors looking for short -term returns.
The triggers of the rally include the sudden popularity of the Chinese AI startup Deepseek, which has developed an AI model that is much cheaper than American rivals, relief that China is not affected with large American sanctions and the sight of XI meeting with Technical leaders.
Shares in Alibaba (Baba, 9988.hk) have linked the rally to the news of an AI partnership with Apple (AAPL), together with the appearance of founder Jack Ma, who has held a low profile over the course of years of hard -handed Performance about the Tech Giants of China, this week’s symposium with Xi Jinping.