Chinese tech stocks surge on AI breakthrough and easing regulatory crackdown, attracting foreign investors

From Nasdaq: 2025-02-19 16:20:00

Chinese tech stocks are surging, with the Hang Seng Tech Index up 30% this year. DeepSeek’s breakthrough in AI technology has sparked investor interest, hinting that China is catching up to the U.S. in the AI race. Beijing’s regulatory crackdown on tech giants seems to be easing, boosting stocks like Alibaba by over 50%.

Goldman Sachs raised its target price for Chinese stocks, projecting $200 billion in inflows due to AI adoption. Foreign investors are drawn to Chinese equities by compelling valuations, shifting focus from Indian markets. However, macroeconomic and geopolitical risks could pose challenges to the market’s momentum.

Billionaire investor David Tepper had been bullish on Chinese equities but cautioned about risks like Trump’s tariffs. ETFs like KWEB, CQQQ, and FXI offer exposure to top Chinese internet and technology companies like Alibaba, Tencent, and JD.com. It remains to be seen if the rally in Chinese tech stocks can sustain its momentum.



Read more at Nasdaq: What’s Behind the Surge in Chinese Tech Stocks & ETFs?