Why is the Hang Seng Tech Index in the doldrums while AI shares are soaring?

South China Morning Post · Feb 23, 2026 · Collected from RSS

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Hong Kong’s tech equity benchmark is struggling to balance the artificial intelligence frenzy and picking the right industry leaders, leading to its underperformance this year, according to analysts.The Hang Seng Tech Index, which comprises 30 technology-related companies including Tencent Holdings, Alibaba Group Holding and Meituan, has fallen 5.5 per cent this year up to Friday, giving up some of last year’s 23.5 per cent gains.In contrast, the broad-based Hang Seng Index has risen 0.3 per cent year to date. The city’s tech gauge has also been outpaced by the US’ tech-heavy Nasdaq 100 Index, which has fallen 0.8 per cent in the same period.Meanwhile, mainland Chinese AI-related companies have benefited from the ongoing investment frenzy. Knowledge Atlas Technology, better known as Zhipu AI, has soared 523 per cent from its offer price to HK$725 on Friday, followed by MiniMax’s 488 per cent gain to HK$970 and Beijing Haizhi Technology Group’s 469 per cent increase to HK$154.10. The three firms have been trading in Hong Kong for no longer than six weeks.Alibaba is a key component of the Hang Seng Tech Index. Photo: ReutersRobot makers like Shenzhen Dobot rose after humanoid robots stole the show in state broadcaster CCTV’s Spring Festival Gala, the most-watched TV programme on the mainland.