Why is the Chinese AI technology gathering dependent on “hot money”?
Until Zhen and Jiaxing Li in the summer
Hong Kong (Reuters) – China’s clear breakthrough in AI and settlement with the tech giant have skyrocketed Hong Kong’s stocks and internet giants, but the buyers behind it are planes and brokers are global Investors say they are wary of big bets.
Hang Sen in Hong Kong (^hsi) To compete with Germany’s Dax as the world’s most performant market to date, earning 13% and 13.1% on the 4% increase in the S&P 500, respectively. And, from a lean run of the year,^gspc).
Hong Kong’s technology stocks hit a three-year high on Monday from mid-January, with President Xi Jinping sitting alongside Beijing’s top technology leader.
Prices have been reduced as investors washed out meeting photos and footage for the top boss’s face.
The transaction also shows what has become a saying about investment in China in recent years. It shows that the biggest prize will be on the earliest mover, especially if you can leave as soon as the euphoria begins to fade.
“Like the movements in HK/China over the past two years or so, it’s a very retailer (and volatile) – trading market,” said Wong Kok Horn, Maybank’s head of stock sales trading. .
“Hedge funds or more Hong Kong-China’s central funds are well aware of the risk of not rushing in from the start.”
Data from the broker seems to indicate exactly who is buying.
CICC has accumulated southbound flows, that is, buys by mainland investors – reached $26.6 billion ($3.4 billion), equivalent to the record rush of September from the month’s New Year’s holiday in early February. It is estimated that.
Morgan Stanley’s memo on hedge fund positioning shows the highest net exposure of the year, with buyers primarily in Asia, taking longer positions rather than covering short bets.
“For the past two weeks, Hot Money has been driving the market,” Steven Leung said, dealing with an institutional client at Brakerage Uob Kayhian in Hong Kong, referring to funds managed by investors seeking short-term returns. states.
Rally’s trigger includes the sudden popularity of Chinese AI startup Deepseek. This means that it has developed a much cheaper AI model than its US rival, a relief that China has not been hit with major US sanctions, and XI can see its meeting with technical leaders.
Alibaba stocks (Baba, 9988.hk) Found a rally of news about AI partnership with Apple (aapl) This week’s symposium with Xi Jinping, with the arrival of founder Jack Ma, who has become less noticeable due to the long-standing crackdowns of Chinese tech giants.