Why China’s stocks Alibaba, Futtu Holdings and Tencent are shaking inflation concerns and are rising today
This morning, despite a hotter than expected inflation report, China’s tech stocks shook the bad news and marched higher. Since the advent of the Deepseek Artificial Intelligence (AI) chatbot in China, the beat sector has continued to move forward.
Large search stocks e-commerce company Alibaba (NYSE: Baby) It had risen 4.4% today as of 11:34am. Meanwhile, the stocks of digital finance companies Futu Holdings (NASDAQ: FUTU) 8.4% surges, with stocks in large technology and video game companies Tencent Holdings (OTC: TCEHY) An increase of 3.5%.
After January’s inflation data reached the above estimates, most major market indexes were sold as investors doubted whether the Federal Reserve could cut interest rates further this year.
The emergence of Deepseek and the possibility that AI language models can be constructed more efficiently are investors looking at Chinese again Technology stocksit’s working well these days. The Hang Seng index lost almost 16% last month despite the continued struggle of China’s economy from the Deflationary Pressure and the sick property sector.
“China has established a stronger presence with AI-powered applications.” jpmorgan chain The strategist wrote in his report Tuesday. “The combination of increased AI adoption and relatively low ratings positions China’s technology for potential outperformance.”
Alibaba reports in the media today that the consumer technology giant is reporting apple Tap Alibaba to bring more AI features to iPhone users in China. Information first reported the news. The move reportedly brings more AI capabilities than Chinese users particularly want, but also ways to comply with China’s strict AI doctrine. The move also could make the iPhone more competitive with companies like Huawei. Xiaomi. It is also a testament to Alibaba’s AI capabilities, as Apple reportedly considered the technology and AI models of several other large tech companies.
Futu has also skyrocketed after analysts Bank of America Yesterday, I repeatedly bought stocks and raised my price target from $108 to $129. Bank of America expects its online financial platform to increase significantly quarterly for new pay clients, but it is projected that the total client assets will rise by 7%. Analysts have been bullished by their strong asset flow and their ability to maintain a gross profit margin of nearly 93%.
I’m not looking at anything specific about Tencent, but as one of the biggest Chinese tech companies specializing in content and video games, it’s not surprising that it’s taking part in the rally . More efficient AI is a big deal for the company, especially as the US continues to think about tipping further.