Foreign investment institutions are showing increased confidence in Chinese assets, with several leading banks forecasting robust growth for the Chinese stock market by 2025.
Deutsche Bank highlights that investors are beginning to recognize the competitive advantages inherent in China\'s manufacturing and service sectors. According to a report released on Wednesday, the bank observes that Chinese companies are delivering better value and quality, leading to a diminishing of the traditional \\"China discount\\" on valuations. This discount is expected to transform into a premium as investors acknowledge China\'s dominance across various industries.
Echoing this optimistic outlook, Goldman Sachs has pointed to the rise of DeepSeek as a significant driver for Chinese technology stocks. The New York-based investment giant forecasts a 14% to 28% increase in the MSCI China Index, with A-shares poised to benefit from advancements in artificial intelligence software, as reported by the Securities Times.
The emergence of Chinese AI company DeepSeek has made a notable impact on the global market. Experts in various sectors have validated DeepSeek\'s claim that its latest reasoning model, R1, rivals OpenAI\'s o1 in problem-solving capabilities while being more cost-effective. This development has sparked a surge of bullish sentiment surrounding China\'s AI sector.
HSBC analysts have noted that \\"the global attention on DeepSeek can spur investors to reassess China\'s innovation capacity, which could act as a catalyst for a rerating of the Chinese equity market this year,\\" according to Investing.com.
Adding to the positive narratives, Bank of America recommends investors take long positions on Chinese stocks, while expressing caution regarding the US stock market, as reported by Bloomberg.
These collective positive assessments from major investment banks underscore a growing confidence in the Chinese market and highlight the increasing attractiveness of Chinese assets to global investors.
Reference(s):
cgtn.com
