Chinese A shares posted a strong rally for the second consecutive session on Friday, boding well for a sustained market uptrend as investors re-evaluate Chinese stocks after advances in the country’s artificial intelligence models surprised the market, analysts said.
The rise of DeepSeek, a Chinese private AI startup, not only reconfirmed China’s capability to innovate in AI, but may promote global investors to fully recognize China’s advantages in wider areas, potentially pushing the A-share market to exceed prior highs in the medium term, they said. “Investors have recently begun to discover that this little-known Chinese AI company has achieved a similar level of performance as industry-leading United States AI companies,” said David Chao, global market strategist for Asia-Pacific (ex-Japan) at Invesco, a global investment management company.
