AsianFin -- China’s AI-fueled stock surge is gaining momentum as Wall Street strategists grow increasingly optimistic, citing the country’s rising tech capabilities as a key driver of the ongoing bull market.
Strategists from Morgan Stanley, JPMorgan Chase & Co., and UBS Group AG expect the rally—spurred by the breakthrough DeepSeek artificial intelligence model—to continue. The rapid global response to the Chinese startup’s advancements has prompted a fundamental shift in market perceptions, challenging long-held beliefs that China lags in cutting-edge technology.
“Global investors are starting to reassess China’s investability within the tech and AI space, after an extended period of limited attention,” Morgan Stanley’s Laura Wang and her team wrote in a note on Tuesday. “We expect the momentum to sustain in the near term given global investors’ light positioning.”
The MSCI China Index has surged about 15% from its January low, outperforming other Asian markets this year. Meanwhile, an index of Chinese tech stocks listed in Hong Kong officially entered a bull market last week.
The growing optimism has sparked a surge in buy-side activity, drawing interest from hedge funds and major asset managers like Fidelity International. While China still faces challenges in proving that AI advancements will translate into broader private-sector growth, the excitement has helped offset bearish sentiment linked to trade tensions.
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