‘The fear of missing out on China’s technological development has once again appeared,’ US investment bank says
In a report published over the weekend, the US investment bank said investors were worried that China would fall behind globally in terms of technological competitiveness because of restrictions on access to advanced chips, artificial intelligence (AI) technology and security concerns. But recent breakthroughs in AI and other areas have made them consider “whether choosing one system would be the right choice, compared to investing in the two competitors at the same time”.
“The fear of missing out on China’s technological development has once again appeared,” wrote Laura Wang, the bank’s chief China equity strategist. She cited AI start-up DeepSeek, other companies in the sector and progress in electric vehicles and humanoids as key drivers of the phenomenon.
The introduction of DeepSeek’s powerful but cost-effective large language models earlier this year reignited global interest in China’s technology sector after regulatory crackdowns earlier in the decade kept many investors away. So far this year, Hong Kong’s Hang Seng Tech Index – which includes many mainland tech giants like Tencent Holdings and Xiaomi – is up 21 per cent.
