Short Interest in China is now at an all-time high!
Source: Subu Trade
"Biggest macro imbalance in the world is the chronic undervaluation of China's Yuan. "
"China's trade surplus - once you look at goods net of commodities (blue) - was the largest ever in 2024. This is why tariffs on China will keep going higher after an already large 10% tariff..." Source: Robin Brooks
🤖After DeepSeek's release, Chinese tech stocks have surged, with Alibaba leading the way, up over 50% in just one month🚀!
The AI boom sparked by DeepSeek is prompting global investors to reassess investment opportunities in China's tech and AI sectors, particularly the AI capabilities of previously undervalued Chinese internet companies. With Alibaba collaborating with Apple to integrate AI features into the Chinese version of the iPhone and 🔵Tencent's WeChat adopting DeepSeek, the demand for AI cloud computing services in China could soon mirror the supply shortages seen in the US. It's clear that China's AI progress is catching up to the US at an accelerated pace—and costs are dropping even faster. Source: Genuine Impact
Goldman Raises MSCI China Target as DeepSeek Improves Outlook - Bloomberg
Strategists at Goldman Sachs Group Inc. expect a blistering rally in Chinese equities to continue, as the emergence of DeepSeek sparks optimism over the country’s technological advancements. Kinger Lau and his colleagues see the MSCI China Index reaching 85 over the next 12 months, up from their previous target of 75. That indicates another 16% rise from Friday’s close. The index has already entered a bull market earlier this month. Their target for the CSI 300 Index was raised to 4,700 from 4,600.
The success of Chinese artificial intelligence (AI) start-up DeepSeek is prompting investors to reassess the nation’s technology companies.
The Hang Seng Tech Index, whose biggest members include Tencent Holdings, Alibaba Group Holding and Xiaomi, approached a four-month high on Thursday, after rallying more than 10 per cent over the past two weeks, while the broader Hang Seng Index climbed about 6 per cent. As shown on the chart below, the valuation gap between Chinese stocks and the Mag7 remains massive. Source: Compounding Quality @finvibe
We don't necessarily see many China cars in so-called "developed countries".
But in the rest of the world, the number of Chinese cars we can see on the road is shocking. No surprise to see the numbers of Chinese cars exports skyrocketting as shown on this chart courtesy of Lyn Alden.
This is what FOMO-ing into China tech stocks looks like.
Source: Brian Tycangco 鄭彥渊 @BrianTycangco on X
Here's how Chinese stocks have done since they all told you that Chinese stocks were going to crash because of something they're calling "Tariffs"
Source: J-C Parets
