The Chinese stock indices have been strong performers, matching those of other major countries around the world. This increase is despite an overall economy that is not doing very well. The real estate markets remain morbid, but sentiment has changed regarding trade wars and geopolitical risks.
The strong China tech sector may be about relative valuation. Chinese tech is cheap relative to similar US firms. It is also associated with a government focus on growing the tech sector, both to avoid dependence on the US and to increase the opportunity to dominate this industry globally. Since the launch of Deepseek AI, there has clearly been more attention to this sector. Clearly, Chinese tech is being pulled along by the strong US moves.
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