Hong Kong stocks cap longest rising streak in 3 weeks on cooling US inflation data

Market Performance - Hong Kong stocks rose for a third consecutive day, with the Hang Seng Index closing at 25,690.53, up 0.8%, marking its longest winning streak in three weeks [1][2] - The Hang Seng Tech Index increased by 1.1%, while the CSI 300 Index on the mainland climbed 0.3% and the Shanghai Composite Index added 0.4% [2] Sector Performance - Chinese pharmaceutical firms showed strong gains, with Innovent Biologics rising 2.1% to HK$83.25 and Wuxi AppTec increasing by 1.5% to HK$103.80, driven by optimism about China's potential as a global hub for innovative drugs [3] - Chow Tai Fook Jewellery Group saw a 3.1% increase to HK$12.70 after raising prices on some products [3] - Major tech companies also experienced gains, with Alibaba Group Holding up 0.8% to HK$145.30 and Tencent Holdings adding 1.5% to HK$614 [3] Economic Context - Cooling US inflation is expected to alleviate concerns about a potential global bubble in artificial intelligence, which has been exacerbated by high valuations and significant investments in data centers [5][6] - Core US inflation was reported at 2.6% in November, the slowest pace since early 2021, with overall consumer prices rising 2.7% year on year, below the consensus estimate of 3.1% [6] Weekly Summary - Despite the recent gains, the Hang Seng Index finished the week down 1.1% due to significant losses in the first two trading days, primarily driven by concerns over the AI bubble [2][7] - Notable decliners for the week included Xiaomi, Baidu, and Alibaba Group Holding, each sliding more than 5%, while Li Ning and CSPC Pharmaceutical Group emerged as top performers with gains of about 7% [7]