China's tech stocks are on a tear, hitting 4-year highs
Hong Kong's Hang Seng Tech Index just hit its highest point since late 2021, jumping over 3% on September 17.
Big names like Baidu, JD.com, Alibaba, and SMIC led the charge.
The index has now climbed for seven weeks straight—up an impressive 41% so far this year.
AI investments are driving the rally
Investors are excited about how much Chinese tech companies are putting into artificial intelligence right now.
Even though these stocks have grown fast, they're still cheaper than US tech giants (with forward earnings at about 20.5x versus Nasdaq's 27x).
That value gap is pulling people back after years of slow growth.
Chinese firms' growing focus on AI
Chinese tech firms plan to pour $32 billion into AI by 2025.
Moves like Alibaba's recent $3.2 billion bond offering are giving them more cash to spend and making investors even more confident—especially with US-China talks looking positive in the background.