HK Stock Market Move | GDS-SW(09698) rose nearly 3% in the morning. JP Morgan expects the AI data center construction project to accelerate in 2026.

GDS-SW(09698) rose nearly 3% in the morning, and as of the time of writing, it had risen 2.96% to 42.38 Hong Kong dollars, with a trading volume of 88.6531 million Hong Kong dollars. On the news front, on January 30, GDS announced that it had reached an agreement with Huatai Capital Investment Limited to issue $300 million in Series B convertible preferred shares through private placement. The funds raised in this round will be mainly used for data center expansion and general business operations. JPMorgan Chase released a research report stating that it expects GDS's AI data center construction project in China to accelerate by 2026, as domestic chip supply begins to grow rapidly, the supply of NVIDIA H200 GPUs becomes clearer, and mainland suppliers are deploying more AI applications. Based on stronger core business and the potential value release of its equity investments, the bank has raised its target price for the stock from $40 to $55, and has reiterated a "hold" rating.