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ChatGPT Buzz Drives Buying Frenzy in China’s AI-Related Stocks
The global hype around the ChatGPT tool has reached China’s stock market, igniting eye-popping rallies in artificial intelligence-related shares following months of lackluster performance.
The global hype around the ChatGPT tool has reached China’s stock market, igniting eye-popping rallies in artificial intelligence-related shares following months of lackluster performance. Beijing Deep Glint Technology Co. soared as much as 16% Wednesday, taking its 2023 gains to over 60%. Hanwang Technology Co. has jumped more than 40% during the period, by far beating the 7% advance in the benchmark CSI 300 Index.
The surge reflects heightened interested in all things AI after ChatGPT — an AI tool made by research lab OpenAI — took the internet by storm since its launch in November. China’s search giant Baidu Inc. is planning to roll out a similar chatbot, which has helped draw inflows into the theme, according to Huatai Securities USA Inc.
China’s AI firms have missed out on the reopening rally that took off late October amid concerns over their weak balances and slow progress in delivering lofty goals. CloudWalk Technology Co., whose shares have advanced 50% this year, estimates its 2022 net loss to widen as much as 48% from a year earlier to 934 million yuan ($138 million). “There has been fervent pursuit of the ChatGPT concept in China, one of the countries that are most active in championing AI, with many large companies preparing to launch similar products,” said Shen Meng, director at Chanson & Co in Beijing. “The rally may fade after a short-term run,” unless supported by material progress by the firms, he added.
Asian Equities Climb as Investors Position for Fed
Asian stocks ticked higher Wednesday in the slipstream of gains on Wall Street, while US equity futures slid as investors awaited the Federal Reserve’s policy meeting. A benchmark of the region’s shares advanced about 0.4%, with key indexes rising in Hong Kong and Australia, while shares fluctuated in mainland China and Japan.
US futures bucked the trend in Asian equities, with small declines following a series of corporate earnings reports late Tuesday that included a disappointing outlook from Electronic Arts Inc. and the first-ever forecast revenue decline for Snap Inc. The Nasdaq 100 had rallied 1.6% earlier, to cap its best month since July and strongest start to a year since 2001.
