“The DeepSeek announcement has shifted the fundamental discussion about China to technological innovation,” said Magdalena Stoklosa in an interview last month. “This theme is multi-year and incredibly important.”
In February, the US investment bank upgraded Chinese stocks to equal weight from underweight, due to improving valuations and a significant shift towards new-economy companies.
“We still see that China is underweight from a perspective of global emerging markets positioning and it should effectively be at least close,” Stoklosa said.
Over the next 12 to 18 months, she said it was important to keep an eye on how various AI models work, spread through the economy and become monetised.
“In China, the discussion is layered with government support for AI infrastructure, a thriving innovation scene with start-ups, mega industry players, and a strategic push to build open-source models that make access to AI quicker and more affordable for many corporations,” she added.
