<div id="readability-page-1"><p><img width="2560" height="1707" src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2025/03/zonghe-ma-3Xzz4aKzbaU-unsplash-scaled.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2025/03/zonghe-ma-3Xzz4aKzbaU-unsplash-scaled.jpg"/></p><p>A wave of artificial intelligence (AI) developments from Chinese technology firms has triggered a buying frenzy in the nation’s stock market, sending an index of tech companies to its highest level in years. </p><p>Leading the surge, Alibaba Group Holding Ltd. unveiled its latest AI model, while other major players, including Tencent and Kuaishou Technology, also introduced new AI tools.</p><h2>Alibaba’s unveiling of DeepSeek contender leads surge in tech stocks</h2><p>Alibaba’s announcement of its QwQ-32B AI model, an open-source tool that significantly advances its previous version, fuelled an 8.4% surge in its stock price in Hong Kong. </p><p>The QwQ-32B model, which boasts 32 billion parameters, is positioned to challenge DeepSeek’s R1 and OpenAI’s offerings. </p><p>Kuaishou Technology, which launched a competing AI video model, saw its shares skyrocket by 16%, marking its biggest single-day gain in over two years. </p><p>The broader Chinese tech index surged 5.4%, reaching its strongest level since 2021.</p><p>The rally also extended to AI-related firms in mainland China. </p><p>Focus Technology Co., which develops AI-powered agent products, hit the 10% daily limit, reflecting investor enthusiasm for the sector.</p><h2>Government reiterates support to AI development at National People’s Congress</h2><p>The latest AI boom was further reinforced by policy signals from Beijing. </p><p>At the National People’s Congress (NPC), the Chinese government reiterated its commitment to supporting AI development, with a focus on large-scale AI models, intelligent manufacturing, and next-generation AI applications.</p><p>“The supportive rhetoric to AI announced at the NPC sets a proper context for Chinese AI innovation to move forward,” said Linda Lam, head of equity advisory North Asia at Union Bancaire Privee. </p><p>“Looking ahead, we expect a proliferation of open-source AI applications from China and the US, to propel the tech rally globally.”</p><p>The AI-driven surge mirrors the effect of DeepSeek’s AI breakthrough earlier this year, which set off a bullish run in Chinese stocks and sent ripples across global markets. </p><p>With multiple firms rolling out advanced models and AI services, the competitive landscape in China is heating up.</p><h2>Alibaba’s ambitious AI investment plans</h2><p>Alibaba has been one of the biggest beneficiaries of the AI-driven market rally, adding approximately $153 billion in market value since its January low. </p><p>The company has stabilized after a prolonged government crackdown and is now leveraging AI to drive its recovery.</p><p>To solidify its AI leadership, Alibaba has pledged to invest more than 380 billion yuan ($52 billion) over the next three years in AI infrastructure, including data centers. </p><p>This ambitious investment plan positions Alibaba as a key contender in China’s AI race.</p><h2>Tech stocks remain attractively valued</h2><p>Despite the significant gains, Chinese tech stocks remain relatively undervalued compared to their US counterparts. </p><p>The Hang Seng Tech Index is currently trading at around 19 times forward earnings, a stark contrast to its 45 times multiple from four years ago.</p><p>“We see a further re-rating happening in the market given how cheap a lot of the China tech stocks look compared to their U.S. peers,” said Ken Wong, an Asian equity portfolio specialist at Eastspring Investments in a Bloomberg report. </p><p>“Showcasing the enthusiasm is that even some hardware tech names which haven’t really performed earlier are going up,” he said. </p><h2>Chinese firms seek to outpace global peers </h2><p>As competition in AI intensifies, Chinese firms are seeking to outpace global counterparts. </p><p>Manus AI recently claimed its general AI agent outperformed OpenAI’s DeepResearch in some areas, highlighting China’s growing expertise in artificial intelligence.</p><p>Alibaba’s QwQ-32B model, which boasts 32 billion parameters, is positioned to challenge DeepSeek’s R1 and OpenAI’s offerings. </p><p>With efficiency and minimal data usage as key differentiators, Chinese AI firms are focusing on creating models that are both powerful and resource-efficient.</p><p>The post Alibaba leads Chinese tech rally with DeepSeek rival launch: What investors need to know appeared first on Invezz</p></div>

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<p>Alibaba's launch of its QwQ-32B AI model has led to an 8.4% surge in its stock price, contributing to a broader rally in Chinese tech stocks. The AI-driven market boom is supported by government policies and significant investments, with Alibaba planning to invest $52 billion in AI infrastructure. Despite gains, Chinese tech stocks remain undervalued compared to US counterparts, indicating potential for further re-rating.</p>

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Alibaba leads Chinese tech rally with DeepSeek rival launch: What investors need to know