Hedge funds are pouring into Chinese stocks at an unprecedented rate as investors bet on the technology sector’s breakout. The DeepSeek-driven AI revolution is driving the rotation, with Eastspring adding Chinese internet names in recent months. In contrast, India is witnessing a record outflow of capital due to concerns over stagnant growth and high valuations. Experts say China remains more attractive than India for risk-reward investors, citing the former’s growing economic stimulus hopes.
Source: https://www.bloomberg.com/news/articles/2025-02-16/deepseek-drives-1-3-trillion-china-stock-rally-as-funds-pile-in