Hong Kong Stocks Surge Amid AI and EV Boom Despite Sino-U.S. Trade Tensions

Chinese stocks in Hong Kong rose as investors invested in AI and EV shares, ignoring new Sino-U.S. tariffs. China announced countermeasures after the U.S. imposed tariffs on imports. Investors hope tensions will ease with future trade talks. Market focus remains on China's response and economic resilience.

Hong Kong's stock exchange witnessed a remarkable surge on Tuesday as investors doubled down on artificial intelligence (AI) and electric vehicle (EV) shares. This positive shift came despite escalating trade tensions between the United States and China, as both nations announced fresh tariffs on each other's goods.

In a swift reaction to the U.S. implementing a 10% tariff on Chinese imports, China's finance ministry unveiled its own set of tariffs. These include levies of 15% on U.S. coal and liquefied natural gas, as well as 10% tariffs on crude oil, farm equipment, and some automobiles, set to begin on February 10.

Despite the recent trade developments, investors anticipate potential negotiations, with trade talks between U.S. President Donald Trump and Chinese President Xi Jinping likely to commence soon. The Hang Seng China Enterprises Index rose by 2.2%, with technology and EV stocks leading the gains.

(With inputs from agencies.)