China’s stock market is making a strong comeback, and the world is taking notice. In the first quarter of 2025, equity issuance soared to $16.8 billion—a staggering 119% increase compared to the same period last year, according to data from LSEG reported by Reuters.
This impressive rebound shows that investors are gaining confidence in China’s economic recovery and market potential. One of the key drivers behind this optimism is the rise of DeepSeek, a leading AI software developer in China. DeepSeek’s success has sparked a revaluation of technology stocks and a broader appreciation of Chinese assets.
“DeepSeek has led to a revaluation of technology stocks, as well as a broader revaluation of Chinese assets,” said Wang Xinjie, chief investment strategist at Standard Chartered China’s Wealth Solutions Division. “Foreign investors are paying more attention to Chinese tech stocks than ever before.”
China’s vibrant innovation ecosystem is another major attraction for investors. Duan Bing, a technology analyst at Nomura, highlighted the long-term growth potential of China’s tech industry. “We believe China’s technology sector has robust growth momentum and a promising future,” Duan said in an interview with China Media Group. “The country provides fertile ground for tech development, with a vast base of enterprises and consumers who are highly receptive to new technologies and applications.”
Apart from the stock market, China’s overall economic outlook remains strong, further boosting investor confidence. The Organization for Economic Cooperation and Development (OECD) has revised its forecast for China’s economic growth, projecting a 4.8% increase in GDP for 2025, up from a previous estimate of 4.7% in December 2024.
Shan Hui, Chief China Economist at Goldman Sachs, told CNBC that recent economic data is “good enough” to assure investors that China is on track to achieve its GDP growth target of around 5% in 2025.
With these positive signs, global investors are increasingly betting on China’s market, especially its booming tech sector, signaling a bright future ahead.
