Standard Chartered’s Judy Hsu notes that the surge in artificial intelligence investments in China has led local investors to believe that the market will keep growing.
A recent downturn in tech stocks is not expected to diminish Chinese investors’ enthusiasm for purchasing shares because they remain confident in both the long-term potential of these firms and Beijing’s strategic plans for the industry, as stated by a senior official.
Standard Chartered
executive.
Judy Hsu, who leads wealth and retail banking at her firm, informed the Post that affluent people in mainland China remained confident in the prospects of technology companies—from AI startups to IT infrastructure developers—even as discussions circulated regarding overvalued market positions.
As she stated on Thursday, ‘The AI surge in China is only beginning.’ Investors seeking sustained profitability believe that this trend will keep growing.’
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She was talking about the appearance of
Chinese AI firm DeepSeek
, triggering a surge in technology stocks traded in Hong Kong and on the Chinese mainland starting from late January, followed by profit-taking activities last week.
DeepSeek has launched two highly potent new large language models, which were created at a significantly lower expense and with considerably less computational resources compared to those utilized by international companies. These models have demonstrated capabilities that match those of ChatGPT, the advanced AI chatbot produced by industry frontrunner OpenAI.
The Chinese President, Xi Jinping, has likewise encouraged the merging of technology and industry to drive the globe’s second-biggest economy forward through novel productive capabilities.
The excitement generated by DeepSeek caused the Hang Seng Tech Index to jump almost 30 percent from early February through March 18. Nonetheless, some of this optimism has waned, leading to an 8.5 percent drop in the tech index since then.
Even with the recent downturn in the stock market, Hsu noted that the risk tolerance among affluent Chinese individuals stayed robust. He further mentioned that DeepSeek’s achievements have prompted investors to increase their stakes in Asian assets, especially those tied to burgeoning technology firms.
This marks a significant milestone,” Hsu stated. “Further thrilling developments should be anticipated. China has demonstrated its strength in these technological sectors.
London-based Standard Chartered, one of Hong Kong’s three currency-issuing banks, has been strengthening its role as an international service provider on the mainland, tapping the rising demand from rich Chinese people for its wealth management services.
Hsu mentioned that Standard Chartered will also focus on investing in both skilled personnel and digital technology advancements to enhance service offerings for its continental Chinese business clients. This move comes as these corporations speed up their international growth strategies.
Standard Chartered intends to recruit more relationship managers in locations such as Hong Kong, Singapore, and the United Arab Emirates, anticipating oversight of an extra $200 billion in client funds within the coming half-decade. To reach this objective, the bank has allocated $1.5 billion for investment.
The lender specializing in emerging markets operates across over 50 markets spanning Asia, the Middle East, and Africa, regions witnessing an increasing number of high-net-worth individuals. Among these, Hong Kong stands out as the most significant market for the bank.
In Mainland China, international wealth management service providers typically use programs like the Qualified Domestic Institutional Investor scheme to assist Chinese residents in investing in foreign markets.
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The article initially appeared on the South China Morning Post (www.scmp.com), which is the premier source for news coverage of China and Asia.
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