Hang Seng surges on China stimulus hopes; Alibaba jumps

The Hang Seng Index rose more than 2% to 25,103 on Monday, making it the best-performing major benchmark in Asia. Hong Kong stocks outperformed while South Korea’s Kospi and Japan’s Nikkei 225 declined.

Traders pointed to rising expectations that Beijing will increase stimulus after a string of weak economic readings. Officials are preparing to accelerate bond issuance at the next Politburo meeting to support growth.

China’s economy expanded 4.3% in the second quarter, below the government’s annual target range of 4.5%–5%. A Goldman Sachs analyst wrote in a note that policymakers face the risk of missing the full-year target if the slowdown continues.

Recent data show weak domestic demand, with subdued retail sales and modest house-price gains, while exports have remained strong.

Policy support being discussed includes fiscal measures and faster issuance of local government or policy bonds to finance infrastructure and other projects. Market participants said the upcoming Politburo meeting could produce more concrete steps.

State support for artificial intelligence also bolstered sentiment. President Xi pledged continued investment in the sector and launched an AI Alliance of 29 countries. Chinese developers have reported rapid progress: Moonshot’s Kimi K3 model has outperformed some US rivals and the company is preparing an initial public offering in Hong Kong. Smaller firms such as MiniMax and DeepSeek have reported recent momentum.

Technology shares led gains on the Hang Seng. Alibaba was the largest mover after launching Qwen 3.8 Max and agreeing to add the model to Apple phones. Other top gainers included CNOOC, Semiconductor Manufacturing International, Aluminum Corporation and Laopu Gold.

The index has recovered from a June low of 22,504 and cleared resistance at 24,185 and the 25,000 level. Some analysts expect the Hang Seng could extend gains toward 26,000 if buying continues and policy signals become clearer.