Chinese tech stocks are outperforming, driven by advancements in AI and Beijing's focus on chip self-sufficiency. The Hang Seng Tech Index has surged, reaching levels unseen in nearly four years, with significant gains attributed to AI-driven initiatives and domestic chip development. Companies are increasing investments in AI and advanced chips, leading to optimism about future growth.
Baidu, Alibaba and Tencent are leading the charge, with their investments in AI and chip technology beginning to yield results. Recent bond sales have also boosted investor confidence. Government support for reducing reliance on foreign technology has further fuelled this growth, fostering hopes for increased domestic chip production. Advances in AI, including recognition of homegrown large language models, are also contributing to positive sentiment.
This surge reflects confidence in China's technological capabilities and its potential to compete globally in the AI sector. The increased spending in AI by mainland tech firms is expected to reach $32 billion in 2025, signalling further expansion and innovation in the sector.
