Stock Track | Vipshop Soars 5% as Optimism Over China's Tech Dominance Fuels Rally

Stock Track02-06 23:13

Shares of Vipshop Holdings Ltd. (VIPS) soared 5.01% in the pre-market trading session on Thursday, outperforming the broader market. The stock's surge was fueled by growing optimism surrounding China's technological advancements and its potential to outpace global peers in various industries.

Analysts at Deutsche Bank believe the recent success of Chinese artificial intelligence (AI) startup DeepSeek marks a "Sputnik moment" for China, signaling the country's technological prowess and its ability to lead the world in cutting-edge innovations. This development has prompted investors to reassess the valuation of Chinese technology companies, which are trading at a significant discount compared to their US counterparts.

According to Deutsche Bank, as Chinese companies continue to solidify their dominance globally, investors may need to quickly adjust their strategies and increase their allocation to the Chinese market. The bank expects the Hong Kong/China stock market to maintain strong performance and lead global markets in the medium term, just as it did in 2024.

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