Investors Shift Focus to Chinese AI as US Tech Valuations Spark Bubble Concerns

Beijing's aggressive push for technological self-sufficiency, particularly in AI and semiconductors, is accelerating the transition of Chinese firms to public markets. Hong Kong's exchange has emerged as a key beneficiary, with companies like Moore Threads and MetaX riding a wave of media attention to successful listings.

The narrative of China closing the tech gap with the US is gaining traction among foreign investors, fueled by substantial government backing. This stands in stark contrast to growing unease about inflated valuations of US-listed AI stocks and their potential for disappointing returns.

Asset managers are recalibrating portfolios in response. One UK-based firm has notably reduced exposure to US tech giants while building positions in Alibaba, betting on China's AI growth trajectory. Chinese tech behemoths like Alibaba and Baidu are doubling down on strategic investments in chips, data centers, and AI models, monetizing these through cloud service offerings.

The momentum extends beyond established players. A surge of AI startups listing in Shanghai and Hong Kong is drawing fresh capital into the sector, creating a dynamic ecosystem that increasingly competes with Western counterparts.