FundCalibre's Juliet Schooling Latter: DeepSeek 'tip of the iceberg' in Chinese innovation

Investors should focus less on economic trajectory

The DeepSeek phenomenon has been viewed through the prism of the US technology giants, with investors mostly focused on the implications of China’s low-cost artificial intelligence on their dominance in global stock markets.

However, there is another side to the equation – what does it say about China's ability to innovate? The Chinese market staged a revival in 2024 after three consecutive years of decline. This was largely fuelled by two government stimulus packages announced in September and November, which sought to shore up the country's flagging property market, encourage consumer spending and keep GDP growth on track for the government's 5% target. It appears to have had some success, with growth reviving in the final quarter of 2024. This strength has sustained into 2025, with the Shanghai Co...