Investing.com- Leading Chinese Internet stocks like Tencent Holdings Ltd (HK:), Alibaba (NYSE:) Group Holding Ltd (HK:), and Baidu (NASDAQ:) Inc (HK:) saw notable gains, driven by speculation surrounding progress from AI startup Deepseek.
Deepseek's latest release of the open source reasoning model, Deepseek-R1, has been recognized for rivaling ChatGPT Openai on several performance benchmarks.
This achievement is particularly noteworthy given the company's use of less advanced chips, highlighting the challenges of US export restrictions in hindering China's AI progress.
It has also gained interest for achieving similar performance to AI systems such as Openai's GPT models and Meta's Lama, while working at their costs.
Investors are optimistic that these developments will enhance the AI capabilities of major Chinese technology companies.
The anticipation is that companies like Tencent, Alibaba, and Baidu will integrate or collaborate with innovative AI solutions from startups like Deepseek, enhancing a competitive advantage in the global market.
Tencent's Hong Kong-listed shares rose 1.3% to HK$395.60, while Alibaba shares jumped 3.5% to HK$87.70 as of 04:00 GMT on Monday.
Baidu shares were 4.2% higher at HK$84.95, while Meituan (HK:) shares rose 1.5%.
China's increasing prowess in artificial intelligence has influenced positive investor sentiment towards major Chinese internet companies.
