The Hang Seng Tech Index has done well this year as demand for Chinese technology companies rose and their innovation accelerated. The index, which tracks the biggest Chinese technology companies, peaked at H$6,195 earlier this month and then pulled back slightly to the current $5,525. This article explores the top Hang Seng Tech index companies driving the gains this year.
Horizon Robotics
Horizon Robotics is a Chinese company that offers smart autonomous vehicle solutions that are used by several Chinese firms. Its top clients are companies like Li Auto, NETA Auto, BYD, Chery Automobile, and SAIC.
The Horizon Robotics stock price has more than doubled this year as investors embrace similar Chinese companies. For example, Pony AI stock has jumped sharply this year.
Horizon’s business is also thriving as it accelerates its commercialization. It delivered 2.9 million products to customers, bringing the cumulative total to 7.7 million. This growth also happened after it secured orders from 100 vehicle brands, bringing the total brands to 310.
XPeng
XPeng stock price has surged by over 75% this year, making it the second-biggest player in the Hang Seng Tech Index. This surge makes it one of the best-performing EV stock in the market.
XPeng has done well because of its strong financial performance and its ongoing innovation as it seeks to dethrone other companies. Its recent results showed that it had about $5.75 billion in cash and equivalents.
Total sales jumped by 59.4% to RMB 16 billion, while the gross margin moved from 8.2% to 14.4%. Vehicle margins increased and the company boosted its forward guidance. It expected to deliver between 91,000 and 93,000 vehicles in the first quarter. Its revenue will be between RMB 15 billion and RMB 15.7 billion.
XPeng is also working on its flying car product, which it hopes to start delivering in 2026.
Alibaba
Alibaba stock has soared by 55% this year, beating most technology companies, including Amazon and the Magnificent 7. The stock has jumped for three main reasons. First, there are signs that the company has repaired its relationship with Beijing. This situation culminated in a recent meeting between Xi Jinping and Jack Ma.
Second, Alibaba has become a top player in the artificial intelligence industry, where it has launched several groundbreaking models.
Finally, it published strong financial results, pushing investors to buy the dip. Besides, BABA was one of the most undervalued companies in the industry.
Xiaomi
Xiaomi stock price has jumped by over 50% this year as it continued to beat Apple. Its smartphone business is thriving, and is narrowing the market share gap with Samsung.
Most importantly, Xiaomi’s electric vehicle business is doing well as the popularity of its new vehicle soars. This growth has pushed it to launch a new manufacturing plant in Beijing as it seeks to sort the demand.
Therefore, Xiaomi aims to become a major player in the automobile sector, and it will likely succeed because of its good brand.
Read more: Xiaomi raises $5.5 billion to fuel electric vehicle expansion
More Hang Seng Tech index stocks
Other large Hang Seng Tech Index companies have done well. Kingdee International Software stock has soared by 56% this year, while Hua Hong Semiconductor, Alibaba Health Information, SMIC, Tencent Music, JD.com, and Tencent Holdings have soared by over 20% this year.
This growth will likely continue because Hong Kong stocks are seen as being undervalued after they underperformed the market for a while. Also, there are signs that the Chinese economy is doing well as Beijing targets another 5% annual growth rate.
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