NEW YORK, January 2, 2026, 05:03 ET — Premarket
- Tencent shares closed up 4.0% in Hong Kong as tech stocks rallied on fresh China AI optimism.
- A Hong Kong exchange filing showed Tencent bought back 1.1 million shares on Dec. 31 for HK$635.5 million.
- Traders are watching mainland China’s market reopening on Jan. 5 and whether U.S.-traded ADRs follow the Hong Kong move.
Tencent Holdings Ltd (0700.HK) shares rose 4.0% in Hong Kong on Friday, riding a technology-led rally that kicked off 2026 on a strong note.
The move matters because Tencent is one of the sector’s main bellwethers, and investors have started the year leaning back into China’s artificial intelligence (AI) trade after a late-2025 rebound in Hong Kong tech shares.
Tencent closed at HK$623.00, up HK$24.00 on the day, after trading between HK$600.50 and HK$624.50, according to FT data. The stock is about 9% below its 52-week high of HK$683, set in October.
The rally came as Hong Kong stocks climbed to a one-month high on renewed optimism toward China’s domestic AI sector, Reuters reported. By the midday break, the Hang Seng Index was up 2.2%, while the tech sector index rose 3.4% and an AI index gained 3.2% after DeepSeek published a paper this week outlining a cheaper approach to developing AI; shares of AI chip designer Shanghai Biren Technology more than doubled in their Hong Kong debut, and Baidu jumped 7.5%. “Tech optimism continues,” said Wee Khoon Chong, APAC macro strategist at BNY, in comments carried by Reuters. mint
Tencent also remained in focus after a Hong Kong exchange filing showed it bought back 1.1 million shares on Dec. 31 for HK$635.5 million. A buyback is when a company repurchases its own stock, which can support earnings per share by shrinking the share count.
The broader China-tech mood has also been supported by a busy IPO pipeline tied to chips and AI. Baidu’s AI chip subsidiary Kunlunxin has confidentially filed for a Hong Kong listing, Reuters reported, as Beijing pushes domestic semiconductor capacity amid tighter U.S. export controls.
In the United States, Tencent’s OTC-traded ADRs (TCEHY) last closed at $76.55 on Dec. 31, down 0.65%, ahead of Friday’s U.S. session after the New Year’s Day holiday.
With New York trading about four and a half hours away, investors will be watching whether the Hong Kong gains translate into U.S. price action, or fade as liquidity returns after the holiday break.
Mainland China’s stock markets were closed on Jan. 1–2 for the New Year holiday and will resume trade on Monday, Jan. 5, according to the Reuters report. That reopening can matter for Hong Kong tech because mainland investors often participate through cross-border trading links that can swing sentiment day to day.
For Tencent specifically, traders will look for any follow-on disclosures around share repurchases and for signs that the AI-driven re-rating is lifting the largest internet platforms rather than a narrow set of chip and hardware names.
The stock’s sharp Friday gain also leaves it near the top of its day range, with HK$624.50 marking the session high and HK$600.50 the low. A clean break above the October peak around HK$683 would put the stock back at fresh 52-week highs, while a pullback toward the prior close around HK$599 would test whether the new-year bid has staying power.
