Stocks rise on bets investors will look for cheaper options after DeepSeek’s popular low-cost AI model sparked a US$1 trillion tech rout.

The little-known artificial intelligence firm has emphasized research, even as it emerged as the brainchild of a hedge fund.

UBS estimates US$236 billion of fund inflows in 2025 as a result of Beijing’s directive to funds to shore up the capital markets.

HONG KONG: Hong Kong’s Hang Seng index ended Tuesday’s half-day trading slightly higher, with tech shares and consumption stocks helping the gain ahead of the city’s Lunar New Year holiday. The market will be closed for the rest of the week. China market was closed for the public holiday beginning Tuesday.

So much for the quiet pre-holiday trading session as Asian equities were mixed though Australia was closed for Australia Day, Indonesia was closed for Al Isra’ wal-Mi’raj, South Korea was closed for the Korean New Year,

DeepSeek is just one of many Chinese companies working on AI to make China the world leader in the field by 2030.

Hong Kong stocks rallied on Monday, with the Hang Seng Index gaining over 500 points at one point during the afternoon trading session. The index touched a high of 20,093.65 before closing at 19,925.81,

World shares were mostly lower on Monday after U.S. stocks edged back from their all-time high, with many Asian markets closed for holidays. In early European trading,

Asian stocks traded flat-to-lower on Tuesday, led by a sharp decline in Japanese markets as chipmaking stocks took a hit. Concerns emerged over DeepSeeks new AI model, which rivals advanced AI technologies like ChatGPT

With China's DeepSeek AI model rocking the U.S. tech sector, some tech-heavy aggressive investors may wish to diversify into the Chinese market. Undoubtedly, Chinese internet stocks have been under serious pressure for many years now.

China’s tech stocks outperform US rivals as AI wars heat up—Baidu surges 7.66%, Hang Seng gains 0.79%. US officials weigh tighter Nvidia export curbs as DeepSeek’s AI success raises national security concerns.

Previously little-known Chinese startup DeepSeek has dominated headlines and app charts in recent days thanks to its new AI chatbot, which sparked a global tech sell-off that wiped billions off Silicon Valley’s biggest companies and shattered assumptions of America’s dominance of the tech race.