KE Holdings Inc. (BEKE), a Chinese real estate technology platform, saw its stock soar 5.29% in the 24-hour period leading up to pre-market trading on Wednesday, riding the wave of Wall Street's growing optimism toward Chinese stocks amid the country's advancements in artificial intelligence (AI).
According to several Wall Street strategists, the recent success of DeepSeek, a Chinese AI startup, has sparked a reassessment of China's investability in the tech and AI sectors. Strategists from major banks such as Morgan Stanley, JPMorgan Chase & Co., and UBS Group AG expect stock gains driven by DeepSeek's AI model to continue, challenging previous assumptions that China was lagging behind in cutting-edge technologies.
As global investors' attention shifts toward China's AI prowess, strategists believe this could drive further momentum and inflows into Chinese tech and AI-related stocks, including KE Holdings. The potential for AI to enable efficiency improvements and boost growth prospects has led analysts to consider valuation uplifts for Chinese firms, narrowing the gap with their U.S. counterparts.
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