China and Hong Kong Stocks Surge Boosted by AI Startup DeepSeek

China and Hong Kong stock markets rose significantly, driven by gains in AI shares, notably due to the success of local startup DeepSeek. The Hang Seng Index saw its best four-month performance, and analysts predict a prosperous future for China's AI industry, highlighting its competitive edge globally.

China and Hong Kong markets experienced noticeable growth on Friday, primarily fueled by a strong surge in AI shares. The positive trend was attributed to the home-grown startup DeepSeek, which significantly influenced investor sentiment.

China's blue-chip CSI300 Index saw a 1.7% rise by midday, and the Shanghai Composite Index increased by 1.3%, while Hong Kong's benchmark Hang Seng rose 1.5%. The Hang Seng Index notably recorded a 4.9% advance for the week, marking its best performance in four months, alongside a 2.4% increase in the CSI 300 Index.

Forecasts by market experts like Gao Zhe and Peter Milliken emphasize a flourishing future for China's AI sector, predicting growing investments, improved global competitiveness, and the fading of valuation discounts as economic policies shift to favor growth.

(With inputs from agencies.)