AI Startup Deepseek Continues To Lift Tech Stocks In China, Hong Kong

2025-02-10 02:40:31

(MENAFN- Khaleej Times) Chinese and Hong Kong Stocks were broadly higher on Monday as optimism around Artificial Intelligence (AI) startup DeepSeek continued to lift tech stocks, while better-than-expected inflation data buoyed sentiment.

The Shanghai Composite index gained 0.3 per cent to 3,313.75 points by the midday break, adding to the 1.6 per cent advance in the previous week.

The blue-chip CSI 300 Index was little changed after fluctuating between gains and losses.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

In Hong Kong, the Hang Seng Index jumped 1.4 per cent and the Hang Seng Tech Index rallied 1.8 per cent to a four-month high.

AI-related shares led gains on continued optimism around DeepSeek. Chipmaker Cambricon Technologies jumped 6.2 per cent and AI firm CloudWalk Technology surged to the 20 per cent daily trading limit, leading gains onshore.

China's three largest telecom operators - China Mobile , China Unicom and China Telecom - gained 1.2 per cent to 5.9 per cent after saying they were working with DeepSeek's open source model to "promote inclusive application of the latest AI technology".

"Onshore market could keep this upward momentum until the Two Sessions in March despite the volatility, boosted by the launch of DeepSeek AI which has increased market confidence," analysts at China Securities said in a note.

Concerns about US-China trade tensions may also ease in the short term as investors increasingly view tariff threats as negotiation tactics, they said.

Meanwhile, worries about China's deflation eased after data released on Sunday showed consumer inflation accelerated to its fastest in five months in January thanks to the holiday spending.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.38 per cent while Japan's Nikkei index was up 0.05 per cent.

MENAFN10022025000049011007ID1109190222

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.