If China AI Is So Great, Why Aren’t Its Tech Stocks?

Ahead of the National People’s Congress this week, when the Chinese government will deliver its annual work report and set its top economic agenda, a prominent economic indicator is looking like a bit of an embarrassment for President Xi Jinping.

Since last January’s DeepSeek moment, AI development has become a dominant theme. China is producing some of the world’s most competitive large language models. The adoption rate, especially in manufacturing, has risen sharply. A flurry of AI listings has helped Hong Kong reclaim its throne as the top international equity fundraising market. The government is not only pushing companies to build AI models, but to create a comprehensive supply chain.