China's Tech Stocks Rally on AI and Innovation Amid Economic Challenges

China's technology sector is experiencing a strong rally heading into 2026, driven by advances in AI, robotics, commercial space launches, and flying cars. Chinese tech shares have risen sharply, with an onshore Nasdaq-style index up nearly 13% and a Hong Kong-listed tech index up about 6% this month, outperforming the Nasdaq 100. This surge follows DeepSeek's AI breakthrough last year and reflects growing investor optimism despite economic challenges like a property downturn and weak consumer demand. Beijing's upcoming five-year plan emphasizes technological self-reliance, aiming to compete globally in advanced chips and AI.