Chinese stock markets have recently experienced significant gains, largely driven by advancements in artificial intelligence (AI). The CSI 300 Index, representing major companies on the Shanghai and Shenzhen exchanges, increased by nearly 1%. Similarly, the Shanghai Composite Index rose by 0.85%, while Hong Kong’s Hang Seng Index saw a 2.64% uptick.

A notable contributor to this surge is the Chinese startup DeepSeek, which has entered the AI development arena. Shares of AI-related companies climbed by 2% and have accumulated a 13% gain since the beginning of the month.

Alibaba, a leading Chinese technology firm, experienced a significant boost, with its stock price increasing by over 8% to reach a four-month high. This rise is attributed to reports of a collaboration with Apple to integrate AI features into iPhones for the Chinese market.

The Hang Seng Tech Index, encompassing 30 major tech companies listed in Hong Kong, has surged approximately 25% since its low on January 13, signaling a bullish trend in Chinese tech stocks.

Bush Chu from Hong Kong-based investment firm Abrdn commented, “Only Chinese internet companies are globally competitive and comparable to America’s magnificent seven.” The “magnificent seven” refers to U.S. tech giants like Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla.

The emergence of DeepSeek’s AI chatbot, developed at a fraction of the cost of its American counterparts, has challenged the U.S.’s dominant position in the AI sector. This development led to an initial sell-off in U.S. tech stocks, including Nvidia, a leading AI chip manufacturer.

Overall, the growing interest in AI is significantly influencing Chinese stock markets, with technology companies at the forefront of this upward trend.

Source: Forbes