Quick Read
- The Hang Seng Index rose 0.61% to reclaim the 26,000-point level following an afternoon rally.
- Alibaba shares climbed over 4% after the company announced AI-related product price hikes of up to 34%.
- Semiconductor stocks surged despite warnings of long-term global chip shortages and production bottlenecks.
HONG KONG (Azat TV) – The Hang Seng Index (HSI) successfully reclaimed the 26,000-point threshold on March 18, 2026, closing the trading session with a 0.61% gain. The index, which faced an initial morning dip, staged a decisive recovery in the afternoon, fueled by a surge in heavyweight technology stocks and heightened investor interest in the semiconductor sector.
AI-Driven Price Hikes and Tech Sector Gains
The market rally was largely catalyzed by Alibaba, which saw its share price surge over 4% during the session. This momentum followed an announcement from Alibaba Cloud regarding price increases of up to 34% for its AI computing power and storage products. The company cited the global spike in AI demand and rising supply chain costs as the primary drivers for these adjustments. The trend extended across the broader tech landscape, with Baidu, JD.com, Meituan, and Tencent also recording gains, signaling a rotation of capital back into growth-oriented technology assets.
Semiconductor Supply Chain Pressures
Semiconductor stocks emerged as a major focal point for investors as global supply chain concerns intensified. Reports of potential production stoppages at Samsung Electronics, coupled with warnings from SK Group chairman Choi Tae-won regarding a projected memory chip shortage lasting until 2030, have created a high-stakes environment for chip manufacturers. Despite these macro-level concerns, Hong Kong-listed semiconductor firms, including Zhaoyi Innovation and Shanghai Fudan, posted double-digit gains, reflecting a market that is increasingly prioritizing supply-critical tech components.
Market Volatility and Institutional Caution
While the recovery to 26,000 points indicates a resilient market sentiment, institutional analysts maintain a cautious outlook. The index is currently navigating a complex landscape defined by the ongoing earnings season, shifting expectations for Federal Reserve interest rate policy, and the potential impact of geopolitical tensions in the Middle East. According to analysts at Dongwu Securities, investors are advised to maintain strict position control, noting that the uncertainty surrounding global interest rate paths and regional conflicts may continue to trigger volatility in the coming weeks.
The market’s ability to pivot from a morning slump to a positive close highlights a structural shift where AI-related infrastructure and energy-computing synergy are becoming the primary drivers of valuation, overshadowing the persistent headwinds from traditional sectors like real estate and automotive.