DeepSeek boosts investor confidence in China's tech giants

Chinese AI startup DeepSeek is changing how investors view major internet companies in China. Its success has led to increased optimism about the potential of these companies to leverage artificial intelligence, which has positively impacted their stock prices. Last week, Alibaba's shares rose significantly, contributing to a bull market for the Hang Seng Tech Index. This shift comes as investors begin to focus more on potential growth rather than risks, despite ongoing economic concerns. The renewed interest in Chinese tech is also reflected in rising options trading and a narrowing valuation gap compared to U.S. peers. Major companies like Alibaba, Tencent, and Baidu are also enhancing their AI offerings, further fueling investor enthusiasm.