In the sprawling landscape of global capital markets, the A-shares and H-shares markets stand out as two shining jewels, drawing fervent attention from investors with every fluctuation in their trading patternsOn February 21, 2025, these two markets joined forces to stage an electrifying festivity, achieving a staggering total transaction volume of 22.3 trillion yuanThis impressive performance perfectly illustrated what it means to experience a "market highlight moment."

Shifting our focus to the Hong Kong stock market, the surge observed could only be described as "wild." The Hang Seng Index began its trading session with a bang, leaping significantly higher right at the opening, with gains reaching as much as 3%. It peaked during the day at 23,225.81 points, marking a new high not seen for nearly three yearsBy the end of the trading day, the index had notable gains of 2.47%, closing at 23,129.93 pointsSuch a rally has undoubtedly quickened the pulse of many investorsThe Hang Seng Tech Index led the charge with an impressive leap of 3.98%, closing at 5,499.87 points, another new high since August 2022. The Hong Kong Enterprise Index also showed commendable strength, with an increase of 2.76%, closing at 8,036.21 points.

The main driving force behind this robust performance in the Hong Kong market can be attributed to the explosive rise of technology stocksSectors representing AI, cloud computing, and digital solutions were akin to a herd of wild horses galloping freely across the capital marketLeading the charge was Tuya Smart, which saw its stock rise by as much as 32.65% during the dayOther notable performers included AsiaInfo with a gain of 28%, New H3C Group at 23%, Huidao Network by 21%, and Wisesoft with a 17.5% increaseMajor players like Alibaba and Hua Hong Semiconductor also enjoyed substantial gains of 11% and 12.3%, respectivelyThis significant rally in tech stocks wasn't a mere coincidence; it was fueled by groundbreaking advancements in AI technology, especially those incited by DeepSeek, which reshaped global capital perception regarding the value of Chinese tech assets, showcasing the transformational possibilities that technology holds for the future

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Meanwhile, prior undervaluation of Hong Kong's tech stocks suggested ample room for valuation recoveryThis convergence of technical prowess and capital influx culminated in a radiant moment of value restoration.

Turning our attention to the A-share market, a similarly fervent atmosphere unfoldedDespite a slightly cooler start, where the A50 futures index briefly dipped following an initial rise of 0.85%, the escalating momentum in the Hong Kong market soon pulled the A50 back into the green with a rise of 1.30%. The three major indices in the A-share market turned around effectively from a dipBy market close, the Shanghai Composite Index noted a gain of 0.62%, ending at 3,358.43 points; the Shenzhen Component increased by 0.85%, closing at 10,838.17 points; while the ChiNext index rose by 1.37%, concluding at 2,243.06 points.

A close examination of the leading sectors within the A-share market reveals robust performances closely tied to technology and the digital economyEmerging fields such as liquid-cooled servers, power supply equipment, communication services, data centers, computing power leasing, state-owned cloud enterprises, Alibaba concepts, semiconductors, and supercapacitors led the wayParticularly, buoyed by Alibaba's earnings surpassing expectations, stocks related to Alibaba surged, with companies like Zhongheng Electric, Zhejiang University Network New Technology, Data Ports, and Runjian Shares hitting daily limits, while Aofei Data rose over 10%, benefiting from the broader rally alongside names like Yimikang, Ruijie Networks, and Yakang Shares.

The synchronous exuberance seen in both the A-shares and H-shares can be traced back to numerous underlying factorsFrom the macroeconomic perspective, expectations for China's economy are shifting positivelyFinance Minister Lan Fa'an has indicated a move towards more proactive fiscal policies aimed at promoting sustained economic growthFurthermore, hints from the U.SPresident about the strong possibility of a new trade agreement with China have eased some market concerns and strengthened investor confidence

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