AI Fuels Market Divergence as U.S. Tech Stocks Slide and China’s AI Shares Surge
U.S. markets are witnessing a broad sell-off in technology stocks, driven by growing concerns that the rapid expansion of artificial intelligence could undermine traditional business models, particularly in software and wealth management. In contrast, China is moving in the opposite direction, with investors strongly betting on domestic AI companies as the primary beneficiaries of the technological shift.
In the Hong Kong Stock Exchange, shares of large language model developers have posted record gains since their listings earlier this year. Stocks of MiniMax Group and Knowledge Atlas Technology — known as “Zhipu” — have risen more than fourfold within weeks, reflecting strong investor appetite for so-called “pure-play AI stocks,” rather than traditional internet giants.
Momentum has extended beyond model developers to include chipmakers and technology infrastructure firms. Shanghai Biren Technology has recorded strong gains since its market debut, while Montage Technology shares have climbed sharply, underscoring broad optimism across China’s entire AI value chain.
This trend is reinforced by the structure of the Chinese market itself. Regulatory constraints and geopolitical tensions have created a largely protected competitive environment for local model developers, limiting foreign players’ access to the domestic market. As a result, Chinese companies have been able to accelerate model development and rapidly expand their user bases without direct competition from global leaders.
Meanwhile, major global AI players such as OpenAI and Anthropic remain privately held, giving listed Chinese firms a scarcity premium and making them especially attractive to investors seeking direct exposure to the fast-growing AI sector.