Major global financial institutions are signaling renewed confidence in Chinese assets, with analysts predicting a surge in mainland markets driven by tech innovation and sectoral competitiveness. Deutsche Bank declared 2025 a pivotal year for global investors to recognize China's manufacturing and service sector advantages, forecasting that undervalued Chinese stocks could soon command premium valuations.
Goldman Sachs highlighted AI firm DeepSeek as a key catalyst, noting its latest reasoning model R1 matches leading global AI systems at lower costs. This breakthrough has energized China's tech sector, with the MSCI China Index projected to rise up to 28% this year.
HSBC analysts emphasized that DeepSeek's global recognition could trigger a broader reevaluation of China's innovation ecosystem, while Bank of America urged investors to prioritize Chinese equities over US markets. “The 'China discount' narrative is fading as investors see value in quality growth drivers,” one analyst noted.
With AI advancements complementing China' established supply chain strengths, experts suggest this trend reflects shifting global investment priorities toward sustainable innovation and cost efficiency.
Reference(s):
cgtn.com
