FX168 Financial News (North America) reported that Goldman Sachs stated in a note that for most of this year, global hedge funds have been aggressively purchasing Chinese stocks, and with the emergence of local AI startup DeepSeek, the pace of their purchases has accelerated over the past week, igniting investor enthusiasm.

Reuters cited data as of February 7 this week, stating in a note to clients that Chinese stocks collectively account for the "most net purchases ever" on Goldman Sachs' global major brokerage books.

The bank stated that the week from February 3 to 7 recorded the strongest purchases by hedge funds in more than four months.

DeepSeek's groundbreaking low-cost AI model has become a catalyst for global investors to reassess Chinese Assets, who have been concerned about the peak valuations of USA stocks.

A sales director from a Hong Kong institution servicing hedge fund clients stated that DeepSeek is reversing the narrative that "China has nothing to do with AI."

Analysts and investors indicated that the 10% additional tariffs imposed by Trump on Chinese Commodities are lower than the tariffs he initially threatened.

Since mid-January, the MSCI China (^707717-CNY-NETR) Index has risen for four consecutive weeks, increasing by over 6% so far in February, outperforming major global markets.

According to a securities document from this week, billionaire David Tepper's Appaloosa LP significantly increased its holdings in Chinese Internet giants Alibaba Group and JD.com in the fourth quarter, making both companies among the largest positions in his hedge fund.

Goldman Sachs stated that 95% of the buys last week were individual stocks, led by the Consumer Discretionary, Information Technology, Industry, and Communications Services sectors.

During this period, hedge funds sold off Energy, Utilities, and Real Estate. Hedge funds' allocation to the Chinese stock market currently accounts for 7.6% of Goldman Sachs' total quality book exposure, ranking 23rd over the past five years.