The Hang Seng Tech Index’s surge to a 4-year high reflects revived optimism in Chinese technology leaders like Alibaba, Tencent, and NetEase. Valuations remain comparatively low, trading near the 24th percentile of the past five years, suggesting upside potential if earnings momentum sustains. However, geopolitical tensions, regulatory uncertainty, and global macro risks warrant caution. Investors should view the rally as an opportunity for selective exposure rather than broad chasing. Strong balance sheets and innovation pipelines will distinguish long-term winners.
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