China’s AI Boom Defies Economic Weakness, Fueling Selective Stock Gains

China’s AI supply chain is emerging as a bright spot in an otherwise uneven economy, with investors flocking to semiconductors, cloud infrastructure, and Beijing-backed tech self-sufficiency plays. The CSI 300’s 5% year-to-date gain starkly outperforms Hong Kong’s stagnant Hang Seng, revealing a market bifurcation.

WisdomTree’s Liqian Ren notes AI ecosystem profits remain robust but cautions: "These winners lack scale to lift broader GDP." Hardware manufacturers listing domestically—rather than in Hong Kong—are benefiting from this divergence, as seen in surging A-shares.

While private giants like ByteDance stay off-limits, public markets now offer exposure to China’s chipmakers and AI model developers. Fund manager Leonid Mironov’s bets on Tencent and Alibaba reflect this thematic shift, alongside stakes in Anjue hardware firms.