China’s latest artificial intelligence advancements have triggered a stock market rally, propelling technology shares to multi-year highs and fueling investor optimism.
On Thursday, Alibaba Group Holding Ltd. unveiled its QwQ-32B model—an open-source AI platform that marks a significant leap over its predecessor, achieving superior performance with a fraction of the data used by DeepSeek’s R1. Meanwhile, Manus AI introduced a general AI agent capable of performing tasks autonomously, claiming it outperforms OpenAI’s DeepResearch in certain areas.
The news sent Alibaba’s stock soaring by as much as 8.2% in Hong Kong, marking its biggest intraday gain in nearly two weeks. The broader index of Chinese technology shares surged by approximately 5%, setting it on course for its strongest close since 2021.
In mainland China, AI-related stocks followed suit:
- Focus Technology Co., a company specializing in AI agent products, surged by the 10% daily limit.
- Client Service International Inc., a software maker, also saw a significant jump.
AI Boom Drives Tech Market Rally
This rally builds on DeepSeek’s AI breakthrough earlier this year, which ignited a bull run in Chinese stocks and sent ripples through global financial markets. Investor enthusiasm was further boosted this week when China’s National People’s Congress reaffirmed support for large-scale AI applications, as well as the development of next-generation intelligent terminals and manufacturing equipment.
Alibaba, in particular, has added $135 billion in market value in 2024 alone. The company, founded by Jack Ma, has rebounded after facing years of regulatory crackdowns. Its rising dominance in AI, coupled with increasing signs of Beijing’s policy support, has strengthened its comeback.
China’s AI Race Heats Up
Following DeepSeek’s emergence, multiple companies have launched AI models and services, many of which claim to rival DeepSeek or even OpenAI, the company behind ChatGPT, which initially ignited the global generative AI boom.
As China accelerates its AI ambitions, investors and the public alike remain captivated by the country’s growing technological advancements, solidifying AI as a key driver of market momentum.
Related topics: