A blistering rally in Chinese technology shares accelerated on Wednesday, spurred by renewed bets on AI.

The Hang Seng Tech Index, which tracks the largest tech firms listed in Hong Kong, rose as much as 3.9% to hit its highest level in nearly four years. Search engine operator Baidu led gains with a 19% jump but multiple tech giants came along for the ride, including Alibaba, Semiconductor Manufacturing International, and JD.com.

Fueling the excitement? Companies in China’s technology sector have been raising billions in capital to advance their AI capabilities and other digital infrastructure. Alibaba, Tencent and Baidu have led the flurry of bond issuances, procuring more than $5 billion in September alone. We look at why here.

If the tech rebound continues, it could accelerate the return of capital to China’s markets after years of gyrations due to regulatory crackdowns and post-pandemic economic woes. The surprise debut of a DeepSeek AI model at the start of this year has fueled renewed interest in the whole Chinese AI universe, putting the country on the map as a contender for AI leadership. —Stephanie Phang

What You Need to Know Today

More good news from China tech: Alibaba has secured a high-profile customer in China Unicom for its AI chips, suggesting the Chinese tech leader’s nascent semiconductor efforts are gaining traction in its home market. The e-commerce leader has signed a contract with the country’s No. 2 wireless carrier to deploy its Pingtouge or “T-Head” AI accelerators, according to a video posted late Tuesday by state broadcaster CCTV.

Meanwhile, China’s internet regulator has told the nation’s biggest technology companies to stop buying Nvidia’s AI chips and terminate existing orders, the Financial Times reported, citing people familiar with the matter.

Apple’s smartphone sales in China shrank 6% in the weeks leading up to the iPhone 17 launch, a deeper than usual slump before a new flagship product release. The US company wasn’t alone in experiencing a slow summer, as sales at fellow mobile makers Xiaomi, Vivo and Honor Device also declined in the first eight weeks of the year’s third quarter, according to Counterpoint Research. China’s overall market contracted 2% over that period covering July and August, despite generous government subsidies to encourage consumption.

The Apple iPhone 17 Pro and Pro Max. Photographer: David Paul Morris/Bloomberg

Indonesia’s central bank cut interest rates and said it’s seeking space for further reductions, defying recent rupiah weakness to bolster the economy following violent protests over unemployment and low wages. The central bank lowered its benchmark rate to 4.75%, as predicted by just two of 38 economists surveyed by Bloomberg News. Policymakers have now eased in three successive meetings, reducing borrowing costs by a total of 150 basis points in the last 12 months.

UK inflation held at the highest level in more than 1 1/2 years in August, another uncomfortable reading that is likely to keep Bank of England officials wary about cutting interest rates further ahead of their decision on Thursday. Consumer prices rose 3.8% from a year earlier, the same pace as in July, the Office for National Statistics said. It was in line with the forecasts of both the BOE and private-sector economists. 

Hong Kong is lowering its threshold for home purchases by people applying for an investor visa to bolster the city’s property market. Applicants for the New Capital Investment Entrant Scheme can purchase a residential property valued at HK$30 million ($3.9 million) or above, Chief Executive John Lee said in his annual policy address. The previous threshold was HK$50 million. 

John Lee, Hong Kong's chief executive, leaves after delivering his policy address. Photographer: Lam Yik/Bloomberg

A K-pop concert that was set to be China’s largest in nearly a decade has been indefinitely postponed, highlighting the hurdles to reopening the world’s No. 2 consumer market to South Korean entertainment. The Dream Concert was expected to be a watershed moment for the K-pop industry, with multiple groups set to perform at a 40,000-seat stadium in Hainan — an event seen as a possible end to Beijing’s long-standing informal ban on South Korean acts.

President Donald Trump’s state visit to the UK is about to get under way, with the promise of deals and diplomacy jostling with the constant threat of global and domestic tensions intruding on the royal fanfare. Trump and First Lady Melania Trump are due to arrive at Windsor Castle on Wednesday for a pomp-laden visit designed to charm the US president. 

What You’ll Need to Know Tomorrow

For Your Commute

The effects of climate change are intensifying but businesses globally are struggling to make transition plans that they can implement in the real world, according to a report released Wednesday by the London School of Economics and Political Science.

The study of corporate climate performance looks at disclosures from 2,000 publicly traded companies, which together represent three-quarters of publicly listed equities worldwide and $87 trillion of market capitalization. The authors find that only 2% have disclosed plans to shift capital away from high-carbon assets or to align their spending with their long-term decarbonization goals.

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