DeepSeek's AI Model Spurs Chinese Tech Rally

DeepSeek's AI model has sparked a surge in Chinese tech stocks. With a significant reduction in deployment costs, it's driving widespread adoption across multiple sectors. This momentum is reshaping industries, while ETFs emerge as a key investment channel. E Fund Management integrates AI into operations, enhancing financial services.

In a startling turn of events, DeepSeek's latest AI model has ignited a surge in Chinese tech stocks, as reported on March 12th with Wind data revealing a stellar 14.7% year-to-date ascent of the CSI Artificial Intelligence index. The remarkable drop in deployment costs for extensive language models has powered an uptick in adoption across finance, government, and healthcare sectors. Tech powerhouses like Alibaba, Baidu, and Huawei are swiftly embedding DeepSeek into their frameworks, heralding a new era of innovation in application of AI technologies.

The burgeoning interest in ETFs as a primary AI investment channel becomes evident as AI advances. Investors increasingly favor ETFs for accessing AI-driven opportunities, with leading mutual fund manager E Fund Management spearheading this initiative. A notable milestone was achieved when the E Fund CSI Artificial Intelligence Thematic ETF exceeded RMB 15.6 billion, marking an 83% increase since the year's onset, highlighting ETFs as a potent medium to leverage industry evolution.

China’s asset management industry is embracing AI, with brokers and fund managers integrating DeepSeek models into their operations. With advanced reasoning capabilities, these models are transforming financial services, optimizing digital infrastructure within institutions. Amid this, E Fund Management has seamlessly integrated DeepSeek into their research, risk management, and client interaction processes, demonstrating a forward-thinking approach to investment management, underscoring their role as leaders in applying AI within the financial sector.

(With inputs from agencies.)