Goldman Sachs: Allocating Chinese AI assets has become a necessary means to hedge against risks in traditional industries

Goldman Sachs report indicates that China’s AI is forming an independent investment trend from global tech stocks, with its potential economic benefits severely underestimated. Investing in Chinese AI assets has become a necessary way to hedge against traditional industry risks. Since the “DeepSeek Moment” in January 2025, Chinese AI-related stocks have increased by an average of 50%, and this surge has driven the total market capitalization of the tech sector to grow by over $3 trillion. Chinese AI stocks have significantly outperformed similar U.S. assets by 30% and North Asian peers by 21%. More importantly, the 52-week rolling return correlation between Chinese AI stocks and U.S. and global tech stocks is only 23% (far below the 69% level between the U.S. and other regions), demonstrating that Chinese AI has entered a fully independent market. Unlike the U.S.-dominated semiconductor and model layers, China has notable global comparative advantages in power, infrastructure, and physical AI fields. Currently, global funds have a very low allocation to Chinese AI assets (only 1.2% of their tech holdings). Once the capital markets begin to correct this imbalance, significant capital inflows are expected. (Securities Times)