By Adam Clark

U.S. stock markets are enjoying a technology-led rally. But Chinese companies have also been significant gainers as investors bet China will also become an artificial-intelligence hub.

Alibaba shares have risen 10% in Hong Kong this week, while search company Baidu was up more than 20%. Alibaba is set to report its March quarter results on Wednesday next week.

As Barron's has written, AI models from China's DeepSeek and other Chinese developers have taken a significant foothold in the international market by offering open models that are adaptable and cheaper to run, even if they lag behind the capabilities of the best American-developed AI.

DeepSeek launched preview versions of its V4 model last month. The release had been eagerly anticipated after a predecessor model shocked the market last year by showing advanced capabilities at an apparently cheap training cost.

More money looks set to flood into China's AI sector. DeepSeek is raising money from government-backed investors at a potential valuation of around $50 billion in recent talks, The Wall Street Journal reported this week.

Meanwhile, Baidu's AI chip unit, Kunlunxin, has started the process for a proposed listing on China's Nasdaq-style STAR market, laying the groundwork for a dual listing in Shanghai and Hong Kong.

Kunlunxin signed a tutoring agreement -- a mandatory preliminary step to list -- with China International Capital Corp. on April 29, according to a filing on China's securities regulator's website on Thursday.

The recurring concern about investing in Chinese technology companies is whether authorities in Beijing will choose to exert control over the sector, as they previously did in late 2020, and whether the U.S. will look to limit their growth by restricting access to advanced hardware.

Investors will therefore be watching the meeting next week in Beijing between President Donald Trump and China's leader Xi Jinping, where AI regulations could be on the agenda.

Write to Adam Clark at adam.clark@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 08, 2026 07:49 ET (11:49 GMT)

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