He Deepseek impact Light the bullish bets on the cheap Chinese technology actions. The Hong Kong index that follows Chinese technological actions entered a technical upward market, promoted by a rebound in China’s largest technology companies.
The boom occurs while investors bet on Depseek’s potential, a national application that has rapidly gained global attention.
Hang Seng Tech Index, which follows the 30 main technological companies quoted in Hong Kong, It rose almost 3% on Friday, although it lost part of the profits later, closing 1.8% higher by 5,150.35. This gain marks a rebound of more than 20% since its minimum of January, although the index remains below its historical peak of early 2021. However, it is approaching the maximum of 2024 reached in October.
The leaders of the rebound were the manufacturer of PC Lenovo Group (HK: 0992) and the Giant of the Xiaomi smartphones (OTC: Xiacf) Corp (HK: 1810), which rose to 6.2% and 4.7%, respectively. Software companies (ETR: Sowgn) also saw strong profits, since investors expected the integration of the Deepseek AI model could boost growth. Kingdee business software developer (HK: 0268) shot almost 15%.
Deepseek’s impact
Deepseeka Chinese AI company that has just emerged in the public eye, has generated shock waves in global markets after stating that its latest model, R1, rivals the O1 reasoning model of OpenAI in the capacity to solve problemswhile it operates at a fraction of the cost.
The optimism around the China’s sector has helped technological actions to resist the negative impact of US additional tariffs on Chinese imports.
“Global care on Depseek can promote investors to reassess the innovation capacity of China, What, in our opinion, could be a catalyst for a new assessment of the Chinese Action Market this year”HSBC analysts wrote in a report.
Market analysts have indicated a change in the investment approach in AI, moving from infrastructure and semiconductors towards software and application platforms. The open and profitable source AI model of Deepseek could accelerate its adoption in various industries, especially benefiting companies in cloud applications and software driven by AI.
Separately, HSBC described the promotion of Deepseek as the “dawn of the universal adoption of AI.” He pointed out that integrating the software business model could improve research and design efficiency, while reducing costs, which, ultimately, would boost the growth of medium -term profits.
Citi analysts also see possible benefits for hardware manufacturers, suggesting that Deepseek’s efficient model could accelerate the deployment of generative the edge on edge devices such as smartphones and smart glasses.
At the same time, Deepseek’s rapid rise has also attracted regulatory scrutiny. Australia and South Korea have banned the chatbot of AI on government devices, citing security concerns.
Meanwhile, US legislators are ready to present a bill on Friday that seeks to prohibit the use of application in the country.
Source: Ambito
