China ADRs & ETFs Jump Again. Tiger Brokers up 9.5%; YINN up 8%; Alibaba, Li Auto up more than 6%.

Chinese startup DeepSeek’s AI model is being hailed as a game-changer for the tech industry, highlighting the nation’s innovative capabilities. It’s also prompting investors to rethink the investment thesis for China’s beaten-down shares, just as the market was caught in the crosshairs of a tariff war following Donald Trump’s return to the White House.

An Alibaba executive has denied reports that the Chinese e-commerce giant intends to invest in DeepSeek, Chinese news outlet The Paper reported on Friday.

“This is a sector that has been ignored but like other purely domestic sectors, there are some bright spots,” said Sat Duhra, portfolio manager at Janus Henderson Investors in Singapore. “The recent DeepSeek announcement is a timely reminder that behind the scenes, industrial policy — for example Made in China 2025 — has pushed many sectors toward world-class status.”

Wall Street brokers are upbeat, arguing that the Chinese discount will vanish as gauges top prior highs due to China’s manufacturing strength and tech competence. DeepSeek emerged as an AI threat after it unveiled an app developed at a fraction of the cost that US rivals spent to build their products, even amid curbs on imports of the most cutting-edge chips to China.