0800 GMT - China's recent AI-driven stock rally may signal broader improvements in the country's venture capital ecosystem, Pepperstone research strategist Dilin Wu says in a note. DeepSeek's success has proven that AI startups can deliver tech breakthroughs even with limited computing power, the analyst notes. Its success could open new technical pathways for the sector and provide early-stage Chinese tech companies with access to more funding and resources, Wu says. This shift has energized the AI sector and spurred growth across the tech supply chain, such as in chip and AI hardware makers, the analyst adds. China's recent policy tailwinds to support high-quality tech companies should further fuel innovation, Wu adds. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 18, 2025 03:00 ET (08:00 GMT)
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