Hong Kong And China Concept Stocks Open Strong: Focus On Technology Tracks And Valuation Depressions, Brokerages Bullish On 2026 Outlook

On January 2, the first trading day of 2026, global markets opened with a pronounced leadership from Chinese assets. The Nasdaq Golden Dragon Index rallied 4.38% while the Hang Seng Tech Index climbed about 4% in a single session. By contrast, the Nasdaq Composite edged lower as major U.S. technology leaders underperformed.

The robust performance of Hong Kong equities over the holiday period has bolstered confidence for the post‑holiday A‑share market. Brokerages note a historically meaningful relationship between Hong Kong’s New Year holiday returns and subsequent A‑share performance; since 2010, the Hang Seng’s holiday moves have shown a notable correlation with Shanghai’s returns over the first ten trading days after the break. Given the strength seen on January 2, market participants expect A‑shares to exhibit relative resilience in the near term.

Across the brokerage community there is broad optimism for 2026, with technology narratives dominating investment theses. AI applications and semiconductor‑related sectors are receiving particular attention, while areas that have lagged in the recent rally—such as consumer and healthcare—are being highlighted as valuation opportunities.

On the opening trading day, a number of high‑profile Chinese concept and Hong Kong‑listed names recorded strong gains. Baidu, Bilibili, NetEase, Alibaba, Trip.com  Group, Semiconductor Manufacturing International Corporation, and Hua Hong Semiconductor each rose by more than 5% on January 2. Although the Nasdaq Composite did not advance, the U.S. market displayed internal dispersion: leaders in semiconductor equipment and memory posted solid gains, and several commercial space stocks also performed well.

Market strategists point to specific catalysts behind the renewed risk appetite in Hong Kong, including the listing of domestic GPU players and corporate restructuring moves in chip units, which have helped to re‑energize investor interest in technology themes. At the same time, research from several brokerages emphasizes that the current bull market still contains pockets of under‑appreciated sectors. Data compiled by Founder Securities show that since the 2024 market upswing, technology and advanced manufacturing have appreciated by 53.7% and 42.3% respectively, whereas healthcare and consumer sectors have risen by only 18.4% and 10.3%. This divergence underpins calls to rotate into mid‑cap blue chips and select cyclical, consumption and biopharma names that may benefit from both policy support and earnings recovery.

Analysts also expect the technology rally to evolve in 2026 from infrastructure‑led gains toward broader application adoption, with AI‑driven services and platform monetization becoming more prominent. In parallel, a gradual increase in household capital entering the market is viewed as a potential catalyst for the next phase of the bull market, which could broaden participation and support revaluation of previously lagging assets such as premium consumer brands and certain real‑asset sectors.

The recent appreciation of the renminbi has added another dimension to positioning. Research from Guosheng Securities outlines two investment pathways under RMB strength: one that prioritizes sectors with domestic demand and external cost exposure—such as steel, petrochemicals, aviation, industrial metals, paper and gas—and another that emphasizes valuation re‑rating driven by capital inflows, which could favor power equipment, autos, non‑ferrous metals, electronics, communications, home appliances and food and beverage companies. Historical patterns suggest that a sustained RMB uptrend tends to accelerate foreign capital allocation to China, amplifying the potential for sectoral re‑rating.

Overall, the consensus among brokerages is constructive for 2026, with technology remaining the primary thematic driver while valuation‑oriented opportunities in consumption and healthcare attract increasing attention as potential sources of incremental return.