Stocks rise on bets investors will look for cheaper options after DeepSeek’s popular low-cost AI model sparked a US$1 trillion tech rout.

The little-known artificial intelligence firm has emphasized research, even as it emerged as the brainchild of a hedge fund.

UBS estimates US$236 billion of fund inflows in 2025 as a result of Beijing’s directive to funds to shore up the capital markets.

HONG KONG: Hong Kong’s Hang Seng index ended Tuesday’s half-day trading slightly higher, with tech shares and consumption stocks helping the gain ahead of the city’s Lunar New Year holiday. The market will be closed for the rest of the week. China market was closed for the public holiday beginning Tuesday.

So much for the quiet pre-holiday trading session as Asian equities were mixed though Australia was closed for Australia Day, Indonesia was closed for Al Isra’ wal-Mi’raj, South Korea was closed for the Korean New Year,

Hong Kong stocks rallied on Monday, with the Hang Seng Index gaining over 500 points at one point during the afternoon trading session. The index touched a high of 20,093.65 before closing at 19,925.81,

DeepSeek is just one of many Chinese companies working on AI to make China the world leader in the field by 2030.

With China's DeepSeek AI model rocking the U.S. tech sector, some tech-heavy aggressive investors may wish to diversify into the Chinese market. Undoubtedly, Chinese internet stocks have been under serious pressure for many years now.

Previously little-known Chinese startup DeepSeek has dominated headlines and app charts in recent days thanks to its new AI chatbot, which sparked a global tech sell-off that wiped billions off Silicon Valley’s biggest companies and shattered assumptions of America’s dominance of the tech race.

I recently had the privilege of speaking with Silas Chu about Hong Kong's evolution, trade fair initiatives, and growing global opportunities.

DeepSeek says its AI model is similar to US giants like OpenAI, despite fears of censorship around issues sensitive to Beijing

China's technological capabilities may be advancing faster than previously thought, challenging U.S. dominance in AI, digital payments, reserve currency and global trade.