Toggle Menu

When Bonnie Chan Ying in Davos was six weeks ago for the annual Confab of the World Economic Forum (WEF), the Swiss ski resort had emptied a pioneering application called by an unknown artificial intelligence company (AI) had released half a world in China.

Hangzhou -based Deepseek introduced the same name on January 20, providing free LLM Language model for free on the same day that we started.

Within two days, the Deepseek Chatgpt from Openai as the most downloaded FreeWare app on the iOS application store in the United States. In Wall Street and other places, Dibsic raised the reclaim of Chinese stocks, which led to the launch of a torrent of money in the second largest capital market.

Do you have questions about the largest topics and trends from all over the world? Get the answers using the knowledge SCMP knowledge, our new platform for coordinated content with supervisors, common questions, analyzes, and graphs that our award -winning team brought to you.

“In the past two weeks, the world [has been] Even waking up [the realisation] Chan, CEO of Hong Kong Exchange and Clearance, said at a conference in Kuala on February 17, “

Hkex Bonnie Chan, CEO of SCMP China in Kuala Lumpur on February 17. Photo: Nora Tam Alt = Hkex CEO of Bonnie Chan talks at the SCMP China conference in Kuala Labor on February 17. Photo: Nora Tam>

NVIDIA, the dominant company of potatoes that deal with Power AI requests, lost $ 600 billion on January 27 when its shares decreased by 17 percent, as investors realized that LLMS could be developed at a cost of cost in high capacity. The arrow has decreased by another 4 percent since then, which enhances the reassessment of American technology shares.

“Once you realize that the same thing [leading edge] technology [such as in AI] “It can be created at a much lower cost, people start asking whether the evaluation allocated to this arrow is reasonable,” Chan said. [investors] You will realize the attractiveness of stocks in this area. “

Goldman Sachs was one of the first global investment banks to be re -decreased China’s shares last month. It has reviewed the 12 -month target of the MSCI China index, which includes the shares listed on the beach and outside, to up to 13 percent to 85, and the CSI 300 index of the largest Chinese stock of Yuan by 2.2 percent to 4,700. This means the return of 16 percent and 19 percent, respectively, from levels. This added that if these goals become their fruits, this would bring new flows of $ 200 billion.

The Hang Seng index, the 6 trillion Hong Cong stock market, has become US $ 6, as Chinese companies make up three quarters of value, the best scale for stocks worldwide, which led to 21 percent progress. Chinese trading index in the city – from the alibaba group that holds to Tincent Holdings – on the emerging market last month. Alibaba owns the post. The land markets in China also settled, as investors presented emerging technology names.

Optimism quickly spread to the rest of the market after Jack Ma Yun, the co -founder of Albaba, who has largely disappeared from the general view after a campaign against the technology sector, appeared in a meeting of Chinese business leaders with President Xi Jinping last month. The assembly was largely interpreted as an official end to the organizational handles and reaffirming the government’s support for the private sector.

“Green buds are now visible, especially in the technology sector, as companies such as Dembassic are the competitiveness of China and attractive assessments,” said Gary Dogan, CEO of CIO’s International Office, an external investment services provider. “Economists are getting more confident. He chose bank lending as well, which supports small and medium -sized companies.”

More global investment banks joined the choir. Deutsche Bank praised Dibsic as a “moment of Sputnik” in China, pointing to the launch of the first human -made satellite in the world by the former Soviet Union, which caught in the West and raised the image of the former Communist country.

Societe Genereale went to the extent of description of Alibaba, Tencent, Xiaomi, BYD and Semiconductor Manufacturing International Corporation, JD.com and Netease as “seven mourners” in the Chinese stock market, similar to “Meta Platforms” and “Meta Meta”.

Deepseek, the largest contributor to its founder, Liang Wenfeng, is among another sub -group of the unlisted technology giant called “Fantastic Four”, which also includes by attedance, DJI drone maker and Humanoid Robot Maker Unitree.

As a result, re -classification is ongoing. The 35 percent increase this year at the Hang Seng Tech, which tracks the 30 most stocks of shares in Hong Kong, reinforced the profitability of the scale prices to 25.3 times from 21.8 at the beginning of the year, according to Bloomberg data. Alibaba jumped by 70 percent in the range, as the shares moved to the highest level of three years and evaluated to 16.2 times from 9.3 profits, while Tencent is estimated at 27.3 times, recovering from a decrease of 18.9 after a 28 % rally.

Despite the great gains, the seven Titans team still follows the amazing seven, which trades in a double -average double, while NVIDIA, the chips maker in the middle of the global artificial intelligence madness, has reached 37.6 times.

If the date is evidence, the Deepseek-SPURD trade is on going. American shares have risen about 50 percent, as the technology sector alone received $ 13 trillion of market value since Openai Chatgpt was launched in November 2022, according to Coldman Sachs.

The US Bank expects that the gap in the evaluation between Chinese stocks and American technology will be more, noting that Dibsic penetration may enhance corporate profits by 2.5 percent annually over the next decade through productivity gains, and save costs and new revenue opportunities.

“The latest technologies are more release from their nature in nature, and lead to assessments as well as profits, which may give recovery more power than those that were purely paid politics and re -re -expectations.”

Chinese investors are on the mainland with a purchase station, plowing 35.9 billion US dollars in the shares listed in Hong Kong this year in some of the most registered aggressive purchases, as re -classification of the country’s largest technology companies helps fuel the global market gathering.

Traders on the beach spent $ 152.8 billion ($ 19.7 billion) on stocks in February through the Connect program, adding to $ 125.6 billion Hong Kong in January, according to data from the Hong Kong Stock Exchange. The records follow the record only 310.6 billion dollars in January 2021.

China’s technological shares will continue to outperform the basics, encourage the returns of shareholders and support the total policy, according to the UBS global wealth management unit, which prefers large companies, leading cloud platforms and semiconductor makers. The Swiss Bank estimates that the common market value of the artificial intelligence industry in China will rise to $ 480 billion in 2028 from 350 billion US dollars now.

However, not everyone is convinced. Whether the assembly can continue to liquefy LLMS and recovery in spending on China’s consumption, according to Wang Kay, a strategic expert at the American investment company Morningstar.

“I am not sure if it is sustainable,” he said. “There are a lot of technology names that rise due to the enthusiasm on local cultivated LLMS. But this does not necessarily translate into more revenues.

Nomura Holdings said that the Chinese total image was cloudy, noting that the appearance of artificial intelligence applications is low, but the job market is likely to be disrupted and leads to high unemployment. At the same time, geopolitical tensions are likely to remain high in the coming months due to the war of tariffs between the United States and China and increased the American pressure on the technology front, according to Japanese mediation.

For Alex Au, founder and chief investment staff in Alphalex Capital Management in Hong Kong, any decline means an opportunity to buy DIP.

“Investors have realized that China is still able to develop its technology with very limited resources,” he said. “This means that China can continue to innovate and may lead the world in technology, along with the United States. This will have a great impact, especially in terms of confidence, on foreign investors.”

The contraction in China, another major concern among investors, is no longer an obstacle to stocks, thanks to technical innovation, according to Morgan Stanley. The Wall Street Bank indicated that heavy technology companies can achieve higher profit margins and rates of return on property rights even in an analog environment that depends on Japan’s experience.

The American bank said that, in addition to the penetration of Dembesic, China had a set of advantages such as a wide range of engineers, data, the established social network and the ecosystem of e -commerce, as well as possible government support. The target price of the price at the end of the year raised the MSCI China index by 22 percent to 77, and this is for the Hang Seng index by 24 percent to 24,000.

The implications for the height of Debsic exceeds the stock market. In the wake of the noise surrounding AI, Beijing organized a high risk meeting with Chinese entrepreneurs on February 17, in which President Xi promised to provide support to the private sector to include those who included MA alibaba.

The symposium re -revived the confidence of the investors and removed one of the last remaining dust on Chinese stocks: a volatile political position in the private sector. Technology companies have been subjected to years of restrictions that followed this at the last minute of overcoming the initial public group of ANT ANT ANT ANBABA, at a value of $ 39 billion in November 2019.

“It can be said that the total impact of Deepseek on the stock market is stronger than interest rate discounts and the policy incentive announced last year,” said Zhang Zeoye, chief economist at Pinpoint Asset Management in Hong Kong. “It may change the way the government views the role of private institutions in the economy. After all, innovation is a major product for productivity.”

Continuous policy measures may support the assembly caused by Depsic. In a government work report handled to the annual National Legislative People’s Conference this week, China has pledged to advance the development of artificial intelligence by supporting the broader LLMS accreditation and integrating technology to enhance industrial innovation.

“This time, we expect the stock market gains to be determined by Deepseek at the beginning of the multi -year reassessment of Chinese shares,” said Edith Qian, an analyst at CGS International in Hong Kong.

Additional reports by Leopold Chen

This article was originally appeared in South China Morning Post (SCMP), which is the most reliable sound of reporting China and Asia for more than a century. For more SCMP stories, please explore the SCMP application or visit Facebook’s SCMP and twitter Pages. Publishing Rights © 2025 South China Morning Post Publishers Ltd. All rights reserved.