KE Holdings Inc., a leading Chinese real estate platform, saw its stock soar 8.42% in pre-market trading on Wednesday, riding a broader rally in Chinese tech stocks and American Depository Receipts (ADRs) trading on U.S. exchanges.
The surge in KE Holdings' stock price can be attributed to two main factors. Firstly, there has been a rotation of funds from U.S. and Indian markets into Chinese and European stocks, driven by the cheaper valuations and expected foreign inflows into the Chinese market. This has fueled a broad-based rally in Chinese ADRs and exchange-traded funds (ETFs).
Secondly, the bullish sentiment surrounding Chinese tech stocks has been bolstered by optimism around China's push for technological self-sufficiency and the rise of its domestic artificial intelligence (AI) industry. Investors appear to be betting on China's ability to achieve breakthroughs in key technologies like AI, particularly in light of the recent success of DeepSeek, a Chinese startup that has made significant strides in developing cost-effective AI models.
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