HSBC predicts significant growth for Hong Kong's stock market

Hong Kong's stock market has significant potential for growth, according to David Liao, co-CEO of HSBC Asia and the Middle East. Many companies are planning to launch initial public offerings (IPOs), which could attract more investors. A recent breakthrough in artificial intelligence technology called "DeepSeek" has drawn large investments to Hong Kong. Both international and Chinese investors are becoming interested in China's tech sector. Liao noted that the DeepSeek development has made global investors more aware of the opportunities in Chinese companies through Hong Kong's markets. The stock rally began after DeepSeek, a startup based in Hangzhou, introduced two advanced large language models in January. Since then, the Hang Seng Index has increased by over 20% this year, building on an 18% rise in 2024. The Hang Seng Tech Index has also jumped nearly 26% in 2025. In March, Hong Kong's daily stock market turnover has averaged around HK$300 billion (about US$38.6 billion), more than double from a year earlier. This surge indicates a growing interest in investing in the region.