"Magnificent Seven" stocks’ performance has been mostly negative since President-elect Donald Trump returns to the White House. Since Jan 20, Tesla has tumbled 38%, Nvidia slumped 20% as of Mar 6.

During the same period, China's Terrific 10 has outperformed their peers, with Alibaba surged over 70%, Xiaomi soared 57%.

China Asset Revaluation

Technology stocks are soaring in Hong Kong thanks to buzz around AI startup DeepSeek and a meeting between President Xi Jinping and tech business leaders including Alibaba founder Jack Ma, which has been seen as a sign of implicit state support.

The rally has vaulted the Hang Seng index near to the top of the best performing major markets this year and put leading stocks under the spotlight alongside the “Magnificent Seven” US giants.

The DeepSeek news may have been a key catalyst for investors to rethink their perception of Chinese equities. For years, many investors believed China wasn’t an equity market worth owning. The early reaction to DeepSeek suggests this event could change perceptions.

Why? It signaled that China may not be as far behind in the AI arms race as many had assumed—a theme that has arguably been the biggest driver of market gains over the past 12 months.

There has also been a cascading effect: DeepSeek’s announcement was followed by Alibaba—China’s largest company—unveiling a new large language model (LLM), which was soon followed by news of a partnership with Apple.

Alibaba also announced their capital spending over the next three years will be larger than in the past decade—a move more typical of US technology leaders.

Magnificent Seven selloff

Among tech’s megacap companies, the worst performer this year is Tesla, which is down 38% since Jan 20 after dropping almost 6% on Thursday. The automaker’s slide is particularly notable considering CEO Elon Musk’s central position in the second Trump administration.

Nvidia has slid 20% since Jan 20, including a more than 11% decline this week, and is trading at its lowest since September. The chipmaker, which has powered much of the AI market with its graphics processing units, counts on major trade partners across the globe.

President Donald Trump said Thursday that his administration would not consider stock market reaction when hammering out the details of its tariff policy.

When asked whether the decision to pause tariffs on many products from Canada and Mexico for one month was due to the stock market, Trump said the decision had “nothing to do with the market. I’m not even looking at the market, because long term the United States will be very strong with what is happening here.”

“This is very much about companies and countries that have ripped off this country, our country, our beloved United States. And they’re not going to be ripping us off any more. So, you know, I think that has an impact on the market,” the president added.