As global tech stocks face a correction, international investors are being advised to increase their exposure to China's AI industry.
Notable Wall Street investors, including Michael Burry, Citigroup, Goldman Sachs, Allianz, and Quantum Strategies, have expressed positive outlooks on the Chinese stock market, according to the Shanghai Securities News on July 27. The report noted that foreign investors are expanding their stakes in Chinese assets amid a global market correction this month.
Michael Burry, known for betting against the U.S. housing market before the 2008 financial crisis and the subject of the film 'The Big Short,' stated on social media, "Now is the time to discover growth stocks in the undervalued Hong Kong market," revealing that he has increased his stake in JD.com earlier this month. JD.com is a major Chinese e-commerce company aggressively investing in AI and humanoid technology.
On July 20, Citigroup upgraded its investment stance on the Chinese stock market from 'strategic neutral' to 'overweight.' Goldman Sachs also noted in a recent report that "the Chinese AI industry has emerged as a significant investment target." Allianz added that "the growth of China's AI and advanced technology sectors will lead to improvements in the fundamentals of the Chinese economy," explaining that advanced industries are becoming a key driver of economic growth, supported by the government's proactive fiscal policies and increasing market risk appetite.
Additionally, a recent report from Quantum Strategies, a Wall Street research firm, has gained attention in China. The report recommends reducing exposure to major U.S. tech stocks while increasing investments in Chinese AI applications. It stated, "Over the past two years, the valuations of U.S. big tech companies have reached historical highs, while the Chinese AI market is moving beyond large model (LLM) competition to actual industrial applications. As model performance becomes more standardized, future value will be generated in application areas, and China, with the world's largest industrial ecosystem and user base, is poised to be the biggest beneficiary of the expansion of the AI application market."
* This article has been translated by AI.
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