Investment interest in Chinese stocks has revived after China's AI industry created ripples in the global market with the launch of Moonshot AI's Kimi K3 model.
At the same time, some investors are placing more emphasis on Chinese tech stocks, viewing their valuations as attractive and anticipating many companies' earnings to recover in the second half of the year.
The launch of Kimi K3 not only stirred the AI sector but also prompted global investors to reassess the potential of Chinese tech companies.
Foreign media see Moonshot AI becoming a key player in China's AI industry, supported by tech giants Alibaba and Tencent, which stand to benefit from their Cloud businesses and AI ecosystems.
Expectations around AI have driven renewed buying in many Chinese tech stocks, with major China-focused funds rising on gains in Alibaba and Tencent, both seen as direct beneficiaries of AI growth.
Over the past month, Alibaba Group Holding Ltd (9988) rose 12.01%, while Tencent Holdings Ltd (0700) gained 8.22% (data as of 21 July).
Beyond AI themes, another factor supporting Chinese stocks is their lower price levels compared to tech stocks in other markets, attracting some capital back into China.
The Chinese government has sent strong signals backing the capital market after recent selling pressure in Chinese stocks.
Reuters reported that China’s Securities Regulatory Commission (CSRC) convened executives from securities firms, fund managers, and listed companies on Monday to discuss market stability measures.
They emphasized restoring investor confidence, preventing systemic risks, and supporting continuous capital market development.
Meanwhile, reports indicate that state-backed funds, known as the "National Team," have announced stock purchases to stabilize the market: China Reform Holdings Corp pledged over 50 billion yuan to buy back shares and increase holdings, while China Chengtong Holdings Group has bought nearly 10 billion yuan worth of Chinese stocks and plans further purchases in state-owned enterprises, tech stocks, and ETFs.
Another focus for investors is the earnings of listed companies in the second half, with many expected to benefit from domestic consumption recovery and AI investment.
Asia Plus Securities research, citing Bloomberg data, notes foreign investor inflows into Chinese stocks reached about $30 billion in July, a notable surge in years.
They forecast continued profit growth for Chinese listed firms in the second half, covering AI, Cloud, E-commerce, online gaming, electric vehicles, and Consumer Technology sectors, all expected to benefit from China's economic recovery and AI investment trends.
They recommend 8 notable Chinese DR stocks:
Thai investors can access these stocks conveniently through DRs listed on the Stock Exchange of Thailand, without needing foreign brokerage accounts or currency exchange.
However, investors should study each company's fundamentals and consider risks from economic conditions, government policies, and global market volatility before investing, while keeping up with regular news updates.
Source:Businessinsider, Reuters(1)(2),Asia Plus
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