Markets in China and Hong Kong recorded strong gains this Wednesday (26), driven by a new advance in the technology sector and the merger of two major brokers in the country. The resumption of appreciation in companies linked to artificial intelligence, combined with optimism in the financial segment, sustained the upward movement, interrupting the recent losses in the Asian market.
At the close, the Shanghai index advanced 1.02%, reaching levels close to the maximum since December 2024. The CSI300, which brings together the largest companies listed in Shanghai and Shenzhen, rose 0.87%. In Hong Kong, the Hang Seng rose 3.27%, reversing two consecutive days of declines.
The movement reflects the strengthening of prospects for the technology sector in China, driven by strategic announcements from companies in the segment, in addition to the positive impact of restructuring in the financial sector.
Artificial Intelligence Drives Chinese Technology
The rise in technology stocks was led by Alibaba, which rose 4.8%, after announcing plans to make its artificial intelligence model for generating videos and images publicly available. The move generated excitement in the market, indicating that the company can strengthen its position in the race for AI leadership in China.
Other giants in the sector also presented impressive performances. Meituan rose 9.8%, while JD.com rose 8.5%. Optimism was reinforced by the announcement of startup DeepSeek, which plans to accelerate the launch of its next-generation R2 model, increasing competition in the AI segment.
According to analysts, the market still sees room for reevaluation of Chinese technology companies, as new initiatives related to artificial intelligence continue to be implemented.
Merger of Brokers Boosts Financial Sector
In addition to the technology sector, the financial segment also had a day of significant gains, following the news of the merger between China International Capital Corp (CICC) and China Galaxy Securities. The agreement will create China’s third largest brokerage and strengthens the country’s financial sector at a time of strategic adjustments to consolidate its competitiveness.
The merger had an immediate impact on the markets. Shares of the two brokerages jumped almost 20% in Hong Kong, while shares listed in Shanghai reached the daily limit of 10% increase.
Additionally, the financial sector received another boost from Morgan Stanley’s positive review of major Chinese banks, which helped the financial sub-index register a 1.3% rise and lead gains in the Chinese market.
Impact on Asian Markets
China’s positive performance had repercussions on other Asian markets. South Korea’s Kospi index rose 0.41%, while Taiwan’s Taiex rose 0.50%.
However, not all markets followed the rise. Japan’s Nikkei index fell 0.25%, influenced by profit-taking after recent significant gains. Australia’s S&P/ASX 200 also fell 0.14%, reflecting slight pressure in the mining and energy sector.
In Singapore, the Straits Times had a slight devaluation of 0.20%, in an adjustment movement after recent gains.
Perspectives for the Next Days
The strong appreciation of technology stocks and the financial sector in China could have a broader impact on global markets. The accelerated growth of artificial intelligence in the country and restructuring efforts in the financial sector suggest a more competitive environment for local companies.
Furthermore, the merger between Chinese brokers could attract more capital to the Asian market, increasing liquidity and strengthening confidence in the recovery of the Chinese economy.
Operators will be attentive to the next developments in AI initiatives in China, as well as the possible reaction of Western markets to the appreciation of Chinese giants in the sector. The performance of the Hang Seng and the CSI300 in the coming days may indicate whether the upward movement will consolidate or whether there will be corrections in the short term.
