Analyst: Chinese AI models such as DeepSeek have caused investors to reassess their optimism about China’s AI growth and economic benefits

Odaily News Meng Lei, a Chinese equity strategy analyst at UBS Securities, said that the Chinese stock market faces three new narratives in the new year. The first is "DeepSeek and China's innovation spark." He said that China's domestically produced AI big models have achieved the level of similar world-leading big models at a relatively low cost, making China's innovation return to the vision of global investors. The second narrative that is beneficial to the stock market is "all-round policy easing to help valuation reconstruction." In addition, Meng Lei also said that the Chinese stock market is facing a third new narrative this year - the risk of renewed trade frictions between China and the United States. (Yicai Global)