Wall Street sings in unison: bullish on the Chinese stock market! JP Morgan, Morgan Stanley and UBS join the bullish camp.

The Chinese stock market is getting positive feedback from Wall Street strategists, who believe that the strength of new artificial intelligence technology will help continue the bull market. Strategists from Morgan Stanley, J.P. Morgan, and UBS predict that, driven by the DeepSeek artificial intelligence model, the Chinese stock market will continue to rise. The global shock and awe of DeepSeek has led to a fundamental reevaluation of the market's attractiveness, challenging previous assumptions that China was lagging behind in cutting-edge technology. The MSCI China Index has risen by about 15% from its low point in January, outperforming its Asian counterparts this year. Strategists at Morgan Stanley, including Laura Wang, wrote in a report on Tuesday: "After a long period of limited attention, global investors are beginning to reassess the investability of China in the fields of technology and artificial intelligence. Given the low positioning of global investors, we expect this momentum to continue in the short term." The increasing optimism has stimulated a series of actions from buyers, attracting hedge funds and managers from Fidelity International. While there is still a long way to go to prove that artificial intelligence can benefit a wider range of the private sector, this enthusiasm at least helps offset the downward pressure caused by trade tensions. Strategists at UBS, including James Wang, wrote in a report on Wednesday that, based on the experiences of the 4G, 5G, and cloud computing eras, "we seem to not have gone halfway through the rebound yet." They added that ample liquidity and low interest rates should help further re-rate artificial intelligence-related companies. This optimistic view contrasts sharply with the cautious sentiment that prevailed several months ago, when global banks warned of further downside risks following events like Trump's election win. Meanwhile, Morgan Stanley strategist Rajiv Batra pointed out that the inflow of funds into Chinese internet companies this year has been positive, with a surge following the impact of DeepSeek. They wrote: "We believe that Asia will present an opportunity window in the coming months, with a tactical rebound in the Chinese stock market driving momentum upwards." Last week, the research report "Chinese Stock Strategy" led by Deutsche Bank analyst Peter Milliken was released. Milliken has been bullish on the Chinese stock market, emphasizing a "reversal trade" almost every few months since the market downturn in 2021. This latest research report focuses on the core concept of "China's Sputnik Moment," believing that China's technological innovation has triggered a "cognitive leap" globally. By 2024, China's dominant position in global manufacturing will be further consolidated, overtaking Germany to become the world's largest automobile exporter, and launching the world's first sixth-generation fighter jet and the low-cost AI system DeepSeek. Silicon Valley investor Marc Andreessen even referred to the release of DeepSeek as "AI's Sputnik Moment," symbolizing the undeniable rise of Chinese technology (The Soviet Union successfully launched the world's first artificial satellite, Sputnik 1, in 1957, leading to a significant shift in global competition). Additionally, after the "DeepSeek shock" devastated U.S. tech giants, Goldman Sachs reiterated its bullishness on the Chinese stock market last week. Goldman Sachs expects the MSCI China Index to rise by 14% this year under neutral expectations, and could soar to 28% under optimistic expectations. Goldman Sachs emphasized that stocks in the "soft technology" sector are expected to outperform the overall market.