Look At Where Investors Are Placing Bets On Big Gains

Look at where investors are placing bets on big gains.

April 8 (King World News) – Gerald Celente:  China’s sudden emergence as a global player in artificial intelligence, combined with Beijing’s easier hand of regulation, is drawing foreign investors back to Chinese equities.

“China is back on the radar in terms of investor interest,” Goldman Sachs analysts wrote in a note. Interest is “arguably the highest” since foreign investment in the markets peaked in early 2021, they added.

Hong Kong’s Hang Seng index, through which most foreign investors can trade Chinese stocks, has jumped 17 percent so far this year, placing it among the world’s best-performing emerging markets. The MSCI China Index is up 16 percent in 2025.

In contrast, the mainland’s markets have languished, with Shanghai’s key composite index up just 0.5 percent. The reason: investors are still cautious, preferring to invest in offshore Chinese stocks as they wait to see how China’s tech surge, economic stimulus, and trade war with the U.S. play out.

“DeepSeek has been a game-changer on many fronts,” Pruksa Iamthongthong, a strategist in Asia-Pacific stocks with Aberdeen Investments, said to The Wall Street Journal.  

She referred to the Chinese artificial intelligence (AI) research company that startled the world in January by unveiling a high-performance AI created at a fraction of the cost Western developers such as Google and OpenAI spent to build theirs. 

DeepSeek’s announcement set off a surge of investment and new product releases and brought attention back to China’s tech and Internet industries, she added. Major companies Alibaba, Tencent, and Xiaomi reported strong fourth-quarter earnings.

Also, there are some indications that the country’s three-plus-year-old economic malaise may be easing. That, coupled with the tech boom, has prompted HSBC, Morgan Stanley, and other financial heavyweights to upgrade their 2025 growth forecast for China.

The Hang Seng Index will rise 9 percent this year, Morgan Stanley’s analysts now forecast, and the mainland’s flagship CSI 300 by 8 percent.

However, “the bull market [will] slow and profit-taking pressures build as the U.S.-China policy and geopolitical calendar turns active once again in the coming weeks,” they added.

TREND FORECAST:
This comes as no surprise to Trends Journal subscribers. As we have forecast, China will lead the world’s AI race.

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