Exclusive | Hong Kong must capitalise on DeepSeek to lure global and Chinese funds, HSBC says

The market rally driven by the DeepSeek breakthrough has attracted massive capital inflows to Hong Kong, as both international and mainland investors bet on China’s tech sector, according to a top HSBC executive.

“The recent ‘DeepSeek moment’ in artificial intelligence (AI) technology has become a turning point for global investors to recognise the value of Chinese companies through Hong Kong’s capital markets,” David Liao Yi-chien, Asia and Middle East co-CEO, said in an exclusive interview with the Post ahead of the HSBC Global Investment Summit on Tuesday.

“We are seeing international money coming into the Hong Kong stock market and into China stock markets. Mainland investors are also investing in Hong Kong via the southbound Stock Connect scheme.”

The rally in Hong Kong was triggered by Hangzhou-based start-up DeepSeek’s release of two powerful but cost-effective large language models in January. The Hang Seng Index has risen more than 20 per cent so far this year, after advancing 18 per cent in 2024. The Hang Seng Tech Index has surged nearly 26 per cent so far in 2025.

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David Liao, HSBC Asia head, highlights Hong Kong’s role in global investment opportunities

David Liao, HSBC Asia head, highlights Hong Kong’s role in global investment opportunities

For most of March, the daily stock market turnover in Hong Kong has averaged nearly HK$300 billion (US$38.6 billion), more than double from a year earlier.