Useful information
Prime News delivers timely, accurate news and insights on global events, politics, business, and technology
Unlock the editor’s summary for free
Roula Khalaf, editor of the FT, selects her favorite stories in this weekly newsletter.
A point of reference for Chinese technology actions has increased more than 20 percent in the last month, entering an upward market as investors accumulate in the country’s internet companies after the advance of the artificial intelligence of Deepseek .
The Hang Seng Tech index, which tracks the 30 largest technological groups that appear in Hong Kong, increased 25 percent since its minimum of 2025 on January 13. It has exceeded the 4.4 percent increase in Nasdaq 100 and an increase of less than 0.5 percent for the “magnificent seven” American technological actions in the same base in the last month.
The profits in Hong Kong reflect the renewed interest of foreign investors in China after Deepseek, a model of AI apparently developed with much less computer power than US counterparts, triggered a global reevaluation of Chinese technology companies.
“Only Chinese Internet companies are globally competitive and comparable to the magnificent seven of the United States,” said Bush Chu, investment manager of Chinese actions in Abrdn.
“That improvement in feeling has taken some flows to China. We are starting to see a superior performance and a demonstration in China in recent weeks because of that. ”
The positive movement is a blessing for China’s markets, which have been beaten by concerns about the rates of the president of the United States, Donald Trump, a fall in continental property and deflationary pressures in the Chinese economy. The wider CSI 300 index in continental China has increased only 4 percent in the last month.
Deepseek surprised Silicon Valley at the end of January when he launched a large language model (LLM) that said it was based on a starting budget, which raises questions about the need for a large investment in AI.
The news led to US technological actions to a strong fall on January 27. Nvidia established a record of the largest loss of one day in market capitalization, with $ 589 billion annihilated of its market value.
On the contrary, the actions of Chinese technology boom. Cloud and technology computing hardware companies that will benefit from AI innovations have led the recent rally.
They include the Internet giant Alibaba, the Xiaomi consumption electron , in the last month.
Alibaba’s rise included an elevator of more than 6 percent on Wednesday after the information reported that he was working with Apple to implement the functions of the iPhone manufacturer in China.
Electronic Commerce Platforms JD.com and MEITUAN have also advanced 24 percent and 11 percent, promoted by relatively strong consumption data of the New Year anus.
The wider HANG SENG index increases 15 percent in the same period. The Connect Shares Program data, which allows continental merchants to buy Hong Kong shares, indicate a high interest among Chinese investors, with an average daily turnover in February two thirds from January and three times more than February of 2024.
The analysts said that investors were driven by the belief that LLMS’s Chinese development advanced and that consumer -oriented companies would adopt them quickly.
“While Deepseek is known for using unique methods to overcome hardware restrictions in China, we believe that AI Investment and the progress of LLMS by China’s main Internet companies have been underestimated by investors,” wrote the analysts of Citi on February 3.
“The United States is strong in terms of zero to one innovation,” said Chu de Abrdn, “but China is stronger in terms of innovation from one to 100, in terms of access expansion and technology adoption.”
Additional Zijing Wu reports on Riad
