Global investors begin rotating into China’s tech stocks as valuations diverge

Fidelity China Special Situations

Chinese equities have started 2026 on firmer ground, with investor attention turning sharply back toward technology names in both Hong Kong and the mainland. The Hang Seng Index has climbed to its highest level in seven weeks, while the Shanghai Composite has pushed to a decade high.

Tencent, Baidu and NetEase all posted solid gains as capital rotated back into names trading well below their historical valuations. The Hang Seng Tech Index has followed this trend, benefiting from renewed global interest in Chinese digital platforms. As valuations in the US appear increasingly stretched, investors are reassessing risk-reward dynamics in Asia.

The Shanghai Composite has risen by more than 1.5%, reaching its highest point in over ten years, while the Shenzhen Component and ChiNext boards also saw strong gains. Trading volume increased, and advances extended across financials, innovation-linked sectors and specialist tech themes such as brain-computer interface stocks.

Fidelity China Special Situations PLC (LON:FCSS), the UK’s largest China Investment Trust, capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.

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