AsianFin -- Chinese technology stocks listed in Hong Kong are on the verge of entering a technical bull market, driven by growing enthusiasm for DeepSeek’s artificial intelligence model, which has reignited investor interest in China’s internet firms.

The Hang Seng Tech Index climbed as much as 2.5% on Friday, pushing its gains from a January low past the 20% threshold that typically defines a bull market. Leading the surge were Xiaomi Corp., Lenovo Group Ltd., and Li Auto Inc., which contributed significantly to the index’s advance. However, the gauge remains volatile, having slipped into bear market territory just last month.

Investor excitement over DeepSeek’s AI breakthrough has helped ease broader concerns about U.S.-China trade tensions, following Washington’s recent 10% tariff on Chinese imports. Market analysts noted that tech stocks remained resilient, as traders took comfort in the fact that the tariff increase was lower than anticipated and that Beijing’s countermeasures have been measured and strategic.