As global tech stocks face a correction, international investors are being advised to increase their exposure to China's AI industry. On July 27, the Shanghai Securities News reported that prominent Wall Street investors, including Michael Burry, Citigroup, Goldman Sachs, Allianz, and Quantum Strategies, have issued positive forecasts for the Chinese stock market.
Michael Burry, known for betting against the U.S. housing market before the 2008 financial crisis and the protagonist of the film 'The Big Short,' stated on social media that "now is the time to discover growth stocks in the undervalued Hong Kong market." He revealed that he has recently increased his stake in JD.com, a major Chinese e-commerce company that is aggressively investing in AI and humanoid technology.
On July 20, Citigroup upgraded its investment stance on the Chinese stock market from 'strategic neutral' to 'overweight.' Goldman Sachs also noted in a recent report that "China's AI industry has emerged as a significant investment target." Allianz added that "the growth of China's AI and advanced technology sectors will lead to improvements in the fundamentals of the Chinese economy," emphasizing that advanced industries are becoming a key driver of economic growth, supported by the government's proactive fiscal policies and increasing market risk appetite.
Additionally, a recent report from Wall Street research firm Quantum Strategies has gained attention in China. The report recommends reducing exposure to major U.S. tech stocks while increasing investments in China's AI application sectors. It stated, "Over the past two years, the valuations of U.S. big tech companies have reached historical highs, while the Chinese AI market is moving beyond large model (LLM) competition to actual industrial applications. As model performance becomes more standardized, future value will be generated in application areas, and China, with the world's largest industrial ecosystem and user base, is poised to be the biggest beneficiary of the expansion of the AI application market."
* This article has been translated by AI.
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