The Hang Seng China Enterprises Index jumped 4.1 percent on Friday, topping an October peak, to hit the highest since February 2022.

The Hang Seng China Enterprises Index has gained 14 percent so far in 2025, making it among the best performers in Asia.

Chinese mainland stocks in the Hong Kong Special Administrative Region extended a recent rally as the nation’s growing capabilities in artificial intelligence boosted optimism over the market’s outlook.

READ MORE: Hong Kong stocks erase early rally to end lower as tech, property shares drop

Alibaba Group Holding Limited, Xiaomi Corporation and Tencent Holdings Limited contributed the most to the advance. The CSI 300 Index, an onshore benchmark, climbed 0.9 percent.

The DeepSeek revelation “is a reflection that China is making progress on its new productive forces and self-sufficiency goals,” said Marvin Chen, a Bloomberg Intelligence strategist. “The tech momentum may carry the market into March,” when attention turns to the Two Sessions meeting and corporate earnings as the next driver, he added.

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Deutsche Bank called the ongoing tech progress a “Sputnik moment” for the country, while a trader note by Goldman Sachs Group Inc said hedge funds are purchasing mainland shares in large chunks, driven almost entirely by long buys.