Two weeks ago, I made the case for Chinese equities in the fallout from DeepSeek.
Since then, we’ve seen Goldman Sachs write that breakthroughs in AI development and
application “could materially alter” the Chinese stock market trajectory. This week, Deutsche Bank also came out with a extremely bullish note, highlighting the upside of Chinese stocks and macro-driven Chinese themes.
It says:
We think 2025 is the year the investing world realizes China is outcompeting the rest of the world. It’s becoming impossible to not acknowledge that its corporates are delivering superior value for money, and often superior quality, across multiple spheres of manufacturing and increasingly services too. Investors pay for dominance, and we expect the China discount to disappear.
What an opening.
- Deutsche Bank believes the bull market for HK/CH equities began in 2024, and will exceed prior highs in the medium term
- China has moved up the value chain consistently, starting with textiles and now moving into cutting-edge tech
- China floods global markets with competitive EVs, launches 6th gen fighter jet + DeepSeek AI system
- DeepSeek is the moment China’s prowess in intellectual property gets noticed
- They see parallels to energy investing, where market participants were heavily underweight and caught off guard