Hong Kong stocks surrendered gains after approaching a five-month high as technical indicators showed the market was overstretched, despite Goldman Sachs’s move to upgrade its targets for Chinese equities and corporate earnings and fund inflows.
The Hang Seng Index was little changed at 22,616.23 on Monday, after rising as much as 1.6 per cent. The Tech Index lost 0.5 per cent, reversing a 2.4 per cent advance. The CSI 300 Index, which tracks the biggest stocks listed in Shanghai and Shenzhen, strengthened 0.2 per cent.
Technical readings on both indices signalled the market was overbought and the rally this year, powered by the breakthrough at Chinese artificial intelligence (AI) start-up DeepSeek, was excessive and due for a pullback.
Tencent Holdings surged 4 per cent to HK$493.60, as it introduced DeepSeek’s R1 model on its WeChat platform. China Unicom advanced 7.7 per cent to HK$8.87, while smartphone and car maker Xiaomi…
