Alibaba, Tencent and other Chinese technology stocks surged Friday, lifting Hong Kong's Hang Seng Index to a near-three-year high. In the U.S. the Kraneshares CSI China Internet ETF, or KWEB, advanced.

A gauge of Chinese technology shares traded in Hong Kong jumped more than 5% on Friday, as a slew of upbeat earnings boosted optimism toward the sector.

Chinese tech stocks listed in Hong Kong advanced on Friday for their best weekly winning streak since 2020, as earnings surprises and optimism about the artificial intelligence sector drew global investors rotating funds into the sector.

The company increased its R&D investment by 14% to $621 million and just reported Q3 FY24/25 results with revenue growing 20% year-over-year to $18.8 billion and net income more than doubling to $693 million. On top of that, it received a non-recurring income tax credit of $282 million in Q3.

China’s tech stocks rallied on Friday, as sentiment was helped by robust earnings reports from several companies and growing optimism for artificial intelligence-driven technologies. The Hang Seng Tech Index,