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Hong Kong shares have hit a three-year high, driven by a surge in technology stocks and growing interest in artificial intelligence, backed by fresh Chinese government policies.

What does this mean?

The Hang Seng Index climbed 3.3% to 24,369.71 -- its highest mark since February 2022 -- while the Hang Seng Tech Index jumped 5.4% to levels last seen in late 2021. This rally was led by Alibaba's 8.4% share boost after unveiling an AI model to compete with DeepSeek's R1. Investors were also reassured by China's central bank and market regulators pledging to boost economic and market support. Other major indices like the Shanghai Composite and CSI300 recorded gains too, spurred by strong showings in the chip and consumer staples sectors. These trends suggest China's focus on tech innovation and consumer expansion -- spotlighted at the National People's Congress -- is driving market momentum.

With tech leading the charge, the recent surge in Hong Kong indices reflects renewed investor confidence fueled by supportive Chinese policies. Companies spearheading AI and tech innovation, like Alibaba, are paving the way for a broader market upswing. As global interest in AI intensifies, emerging markets are set for growth, potentially offering attractive investment opportunities in tech-heavy sectors.

The bigger picture: Shifting tides in global markets.

Goldman Sachs' optimistic outlook for emerging market stocks highlights expectations of AI-powered growth spreading through global markets. As China strengthens its tech and consumer strategies, the resulting benefits are poised to shape market strategies worldwide. This juncture signifies a key shift, with China's leadership enhancing its role as a major force in global economic development and innovation.