Chinese and Hong Kong Markets Surge on DeepSeek AI Breakthrough and Eased Tech Regulations

The Hang Seng Index is up over 20% in 2025, driven by DeepSeek's innovations and renewed investor confidence despite lingering geopolitical risks.

DeepSeek's cost-effective AI models have positioned the Chinese tech sector as a global competitor, boosting investor interest in Hong Kong and mainland markets.
The Hang Seng Index has risen more than 20% year-to-date, making it one of the best-performing global indices in 2025.
Equity issuance in China's stock markets doubled in the first quarter of 2025, reaching $16.8 billion, as global investors return to Chinese markets.
Daily trading turnover in Hong Kong has averaged nearly HK$300 billion in March 2025, more than double the activity from a year earlier.
While investor optimism grows, uncertainties surrounding U.S.-China tariff policies and China's economic sustainability remain key concerns.