①Global investors are increasing their investments in Chinese artificial intelligence companies, anticipating the discovery of the next "DeepSeek moment" while achieving portfolio diversification;
②Chinese chip manufacturers are accelerating their initial public offerings, with Moore Threads and Muxi Technology, which listed on the A-share market this month, receiving significant attention from investors;
③A report by UBS Group's global wealth management division rated China's technology sector as the "most attractive" industry.
Amid growing concerns from Wall Street investment banks about a potential bubble in U.S. equity artificial intelligence trading, global investors are ramping up their investments in Chinese AI companies. Market participants are anticipating the next 'DeepSeek moment' while seeking to diversify their portfolios.
Currently, domestic chipmakers are rapidly advancing their IPO processes. Moore Threads and Mosaic Technology, which listed on the A-share market this month, have drawn significant attention from both domestic and international investors.
Analysts point out that as China increases its support for AI chipmakers and as Wall Street heightens concerns over the overvaluation of U.S.-related AI stocks, investors are placing larger bets on China’s AI market.
Increase investment intensity
Ruffer, a UK-based asset management firm, stated that it has intentionally reduced its investments in the "Magnificent Seven" US stocks and plans to increase its holdings in$Alibaba (BABA.US)$to intensify its investment focus on China’s artificial intelligence theme.
Gemma Cairns-Smith, an investment expert at Ruffer, commented, 'While the U.S. remains a leader in cutting-edge artificial intelligence, China is quickly closing the gap. The width of the 'moat' may not be as wide as many believe, nor is the depth as profound as imagined... The competitive landscape is shifting.'
Brendan Ahern, Chief Investment Officer at KraneShares, noted that the rapid rise of Chinese AI chipmakers like Cambricon reflects the scale and speed of innovation within China’s AI and semiconductor industries.
In a report released this month, UBS Group Global Wealth Management rated China's technology sector as the 'most attractive' industry, citing investor demand for geographic diversification, China’s 'strong policy support, robust technological self-reliance, and rapid AI commercialization.'
Building on this momentum, Rayliant, a US-based investment advisory firm, launched a US-listed fund in September—referred to as $KraneShares CSI China Internet ETF (KWEB.US)$, which allows investors to invest in large-cap Chinese technology stocks.
KWEB's portfolio includes shares such as$TENCENT (00700.HK)$、$BABA-W (09988.HK)$、$BIDU-SW (09888.HK)$. The fund's size has grown by two-thirds year-to-date, reaching nearly USD 9 billion.
Jason Hsu, founder of Rayliant, stated that in the race for artificial intelligence, the United States holds an advantage in innovation, while China excels in engineering, manufacturing, and power supply.
Hsu noted, 'The current US technology restrictions are compelling China to channel funds into cutting-edge technology fields and innovate from scratch. For investors, a wise and prudent strategy is to seize the opportunities brought by artificial intelligence while managing uncertainty through diversification.'
Editor/melody