The Hang Seng Tech Index, representing China's burgeoning tech sector, has surged over 20% since January, driven by the excitement surrounding the latest AI advancements.
Hang Seng Tech Index Growth
On Friday, the Hang Seng Tech Index gained 2.5%, marking a total increase of more than 20% this year. Companies like Lenovo, Li Auto, and Xiaomi have been the main drivers of this growth.
Impact of DeepSeek on the Market
The excitement around DeepSeek has eased concerns among Chinese investors about trade wars, allowing Hong Kong's Chinese tech stocks to continue climbing. Sat Duhra of Janus Henderson Investors mentions that the recent DeepSeek announcement is a reminder that China's industrial policy has propelled many sectors to world-class status.
Global Investment Predictions
Stock markets have remained stable with Washington announcing softer trade restrictions against China. Wall Street brokers have switched to more optimistic forecasts about the tech industry. According to Deutsche Bank's Peter Milliken, China in 2025 launched the world’s first sixth-generation fighter plane and its low-cost AI system, DeepSeek.
Chinese tech stocks continue to rise on optimistic sentiment and softened trade restrictions, fostering confidence in the sector's further development.
