AI startup DeepSeek fuels a tech stock rally in China and Hong Kong, with telecom giants and AI firms surging amid market optimism.
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| Tech stocks soar as DeepSeek drives AI enthusiasm, with chipmakers and telecom giants seeing major gains in China and Hong Kong. Image: ChicHue |
Beijing, China — February 10, 2025:
Chinese and Hong Kong stocks saw broad gains on Monday, driven by the continued optimism surrounding AI startup DeepSeek. The Shanghai Composite Index rose by 0.3% to 3,313.75 points, building on a 1.6% gain from the previous week. Meanwhile, Hong Kong's Hang Seng Index surged by 1.4%, and the Hang Seng Tech Index climbed 1.8% to reach a four-month high.
AI-related companies led the market rally, with chipmaker Cambricon Technologies jumping 6.2%, and AI firm CloudWalk Technology hitting the 20% daily trading limit. China's three largest telecom companies — China Mobile, China Unicom, and China Telecom — saw gains of up to 5.9% after announcing their collaboration with DeepSeek's open-source model to expand the application of AI technology.
Analysts at China Securities noted that the positive sentiment surrounding DeepSeek could continue to fuel the market until China's Two Sessions in March. They also suggested that concerns over US-China trade tensions may ease in the short term as investors increasingly view tariff threats as negotiation tactics.
Additionally, inflation data released on Sunday revealed that China's consumer inflation had accelerated to its fastest pace in five months, offering further support to market sentiment. This was attributed to increased holiday spending, easing fears of deflation.
However, the broader MSCI Asia ex-Japan stock index dipped by 0.38%, while Japan’s Nikkei index saw a modest gain of 0.05%.