Investing.com- leading Chinese internet stocks such as Tencent Holdings Ltd (HK :),: Alibaba (NYSE 🙂 Group Holding Ltd (HK :), and Baidu (NASDAQ 🙂 Inc (HK 🙂 Experienced Notable Gains Driven by Speculation on Advances from AI Startup Deepseek.
Deepseek’s recent release of its open source reasoning model Deepseek-R1 was recognized for competing with Openai in several performance benchmarks.
This achievement is particularly notable given the company’s use of less advanced chips, highlighting the challenges facing U.S. export markets in hindering China’s AI advances.
It has also been considered to achieve comparable performance to established AI systems such as OpenAI’s GPT models and Meta’s Llama while operating at a fraction of their cost.
Investors are optimistic that these developments will strengthen the AI capabilities of key Chinese technology companies.
The anticipation is that companies like Tencent, Alibaba and Baidu will integrate with innovative AI solutions from startups like Deepseek or improve their competitive advantage in the global market.
Hong Kong-listed shares of Tencent rose 1.3% to HK$395.60, while Alibaba shares rose to HK$87.7.70 at 0400 GMT on Monday.
Baidu shares were 4.2% higher at HK$84.95, while Meituan (HK:) shares rose 1.5%.
China’s growing capabilities in AI have influenced investor positive sentiment toward major Chinese internet companies.
