China is pushing industrial tech and AI as U.S. tensions and market volatility rise

China’s tech stocks are staying in play even as the ￰0￱ up the pressure and global markets get more ￰1￱ October 20 to 23, Beijing’s top officials are meeting to lay out their five-year goals, and tech is expected to dominate the ￰2￱ country’s government isn’t backing off, despite trade tensions, and analysts believe China’s equity space still has solid ground, mainly in local ￰3￱ to CNBC , some investment strategists are staying bullish, especially after DeepSeek rolled out its surprise AI model earlier this ￰4￱ launch showed the world that China can still compete in artificial intelligence, even with ￰5￱ sanctions in ￰6￱ then, the government has promoted DeepSeek and other local projects as proof of its capabilities and has responded to Washington’s policies with new tariffs, port fees, and export ￰7￱ focuses on industrial AI as foreign funds stay selective Liqian Ren, head of quantitative investment at WisdomTree, said optimism toward the ￰8￱ has a spillover effect on China, and as long as that optimism holds, investors will keep positions in Chinese ￰9￱ said falling interest rates from the ￰10￱ Reserve are boosting both ￰11￱ added that international traders are no longer dismissing China altogether but are beginning to treat it as a longer-term bet, especially in ￰12￱ optimism around tech started picking up after DeepSeek’s ￰13￱ wasn’t just the surprise that impressed investors; it was the timing ￰14￱ ￰15￱ restricted chip exports, and yet China still produced a model good enough to be mentioned in the same sentence as ￰16￱ event forced global investors to reevaluate the entire China tech ￰17￱ explained that Beijing is now putting its money behind industrial applications of AI; stuff like automation, software for factories, and enterprise ￰18￱ called this move a “fundamental shift.” Sunil Tirumalai, the global emerging markets strategist at UBS, said in a Friday note that the return on invested capital in the MSCI China index has been improving, even when internet stocks like Alibaba are left ￰19￱ compared the performance with India, which has mostly gone ￰20￱ noted that when you include China’s internet companies, returns actually outpace ￰21￱ takeaway: China may still offer more upside, especially in industrial and AI-focused ￰22￱ said that trying to figure out whether China or the ￰23￱ “win” in the tech space is pointless right now.

“It’s so long term right now it’s very hard to really draw a conclusion,” she ￰24￱ if someone’s investment timeline is long, she believes “it’s still a good time to position.” Mainland stocks edge ahead as Hong Kong takes a hit Equities took a dive on Friday after investors reacted to rising concerns about ￰25￱ bank ￰26￱ Shanghai Composite lost almost 2%, while the Hang Seng Index fell nearly 2.5%. That sharp drop added fuel to the idea that mainland-listed shares, often called A Shares, might now be a better hold than stocks traded in Hong ￰27￱ Wang, Chief China Equity Strategist at Morgan Stanley, said in a late Friday note, “Do not buy the dip yet.” She warned that Hong Kong stocks tend to follow the ￰28￱ closely and pointed out that the Hang Seng has already jumped more than 25% this year, compared to just over 12% for the S&P ￰29￱ gap could spook traders into cashing out ￰30￱ said her team is now “tactically overweight A shares ￰31￱ Kong,” mostly because of trade and credit ￰32￱ now, she’s sticking with Chinese companies that show consistent earnings and solid dividend ￰33￱ the leadership summit kicks off, China is expected to release its third-quarter GDP on ￰34￱ Liu, Chief Economist for Greater China at HSBC, said that the next five-year plan will focus on new technologies, especially AI, robotics, biotech, and ￰35￱ firm’s equity strategy group had already warned earlier in the week about growing market volatility, but said they still expect tech innovation to keep pushing the market ￰36￱ named three specific stocks that they believe will beat earnings estimates: Gigadevice, a semiconductor company in Shanghai; Yonyou, which builds enterprise software, also in Shanghai; and Inovance, a factory automation firm listed in ￰37￱ a premium crypto trading community free for 30 days - normally $100/mo.