0258 GMT - Capital Economics remains cautious on the outlook for Chinese stocks after the recent DeepSeek-driven rally. China's tech stocks near-term outlook is better than CE expected as Beijing is now more supportive to private companies, says Thomas Mathews, head of Asia Pacific markets at Captial Economics. However, with the IT sector accounting for just 8% of the MSCI China Index by capitalization, the AI boost for Chinese equities will likely be smaller than other tech-heavy markets, he says. Despite the recent AI innovations in China, it could be a challenge to capitalize on it more broadly, he says, adding that valuation of Chinese equities may remain lower than global peers due to trade uncertainties and concerns about the economy. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 27, 2025 21:58 ET (02:58 GMT)
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