DeepSeek has boosted the faith of rich Chinese investors in tech stocks: StanChart banker

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DeepSeek’s two powerful new large language models sparked a bull run in tech stocks in Hong Kong. Photo: Reuters

A recent correction in technology stocks is unlikely to dent Chinese investors’ buying interest due to their belief in the companies’ long-term prospects and Beijing’s vision for the sector, according to a senior Standard Chartered executive.

Judy Hsu, CEO for wealth and retail banking, told the Post that high-net-worth individuals in mainland China had faith in the potential of tech firms ranging from artificial intelligence (AI) start-ups to information technology infrastructure builders despite talks about their frothy valuations.

“The AI boom in China has just started,” she said on Thursday. “Investors chasing long-term returns are convinced that the market will continue to rise.”

She was referring to the emergence of Chinese AI firm DeepSeek, which sparked a rally in tech stocks trading in Hong Kong and on the mainland since late January before profit-taking set in last week.

DeepSeek’s two powerful new large language models sparked a bull run in tech stocks in Hong Kong. Photo: Reuters

DeepSeek released two powerful new large language models built at a fraction of the cost and computing power used by foreign firms. Its performance proved to be on par with ChatGPT, the generative AI chatbot developed by global leader OpenAI.

Chinese President Xi Jinping has also been urging integration of technology and industry to spur the world’s second-largest economy with new productive forces.

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