After the emergence of DeepSeek, foreign investment enthusiasm for China Stocks has continued to heat up in recent days.

UBS Group pointed out that since the beginning of the year, AI-related Chinese listed Stocks have averaged a 15% increase, outperforming the MSCI Chinese Index by 9%. Considering the current abundant liquidity and low interest rates, UBS Group believes there is a valuation re-evaluation opportunity for AI-related stocks.

In this report, UBS Group provides a detailed list of AI-related companies for comparison, along with valuation comparisons. This list covers multiple sectors, including Hardware, Software, Internet, and Autos.

Futu News has selected a list of Chinese companies listed in Hong Kong and the U.S. for mooer reference:

UBS Group believes that

$XIAOMI-W (01810.HK)$ XIAOMI-W is rapidly developing in the Hardware and AI fields. On UBS Group's list, XIAOMI-W and$Tesla (TSLA.US)$In comparison, although Xiaomi's valuation is 80% lower than Tesla's, its potential in the field of smart Hardware and AI ecosystem should not be underestimated.

$Li Auto (LI.US)$ Ideal Auto, as one of the representatives of China's new energy vehicles, is compared to Tesla. Ideal Auto's valuation is 90% lower than Tesla's, reflecting the market's expectations for its future development.

$SMIC (00981.HK)$ Semiconductor Manufacturing International Corporation is on UBS Group's list, compared to...$Taiwan Semiconductor (TSM.US)$Semiconductor Manufacturing International Corporation's valuation is 15% lower than Taiwan Semiconductor, and its position and technological advancements have become an important force in the AI Chip manufacturing sector.

In addition, it also includes ... $HUA HONG SEMI (01347.HK)$ 、 $ZTE (00763.HK)$ 、 $LENOVO GROUP (00992.HK)$ 、 $TENCENT (00700.HK)$ 、 $Alibaba (BABA.US)$ / $Alibaba (BABA.US)$ 、 $Baidu (BIDU.US)$ /$BIDU-SW (09888.HK)$ 、 $HORIZONROBOT-W (09660.HK)$ 、 $BLACK SESAME (02533.HK)$ 、 $MOBVISTA (01860.HK)$ 、 $MEITU (01357.HK)$ 、 $MING YUAN CLOUD (00909.HK)$ 、 $FOURTH PARADIGM (06682.HK)$ 、 $Agora (API.US)$ 、 $KINGDEE INT'L (00268.HK)$ 。

It is noteworthy that this year, the Hong Kong stock market has become one of the most dazzling markets in the world, with important indices performing "far ahead" in the global market. Although the Hong Kong stocks as a whole have surged and then fallen today, the Hang Seng TECH Index reached a new high in three years at one point during the session.

Looking at the market this year, China Assets are showing a thriving atmosphere, $Hang Seng TECH Index (800700.HK)$ having accumulated a rise of over 17%, $Hang Seng Index (800000.HK)$ Increased by nearly 9%, $NASDAQ Golden Dragon China (.HXC.US)$ an increase of over 12%. In terms of sectors, particularly DeepSeek and autonomous driving concept stocks have recorded good gains this year.

As of February 13, among the Hang Seng TECH Index constituent stocks, $KINGDEE INT'L (00268.HK)$ the increase reached nearly 65%, $SMIC (00981.HK)$ 、 $BABA-W (09988.HK)$ accumulated to over 40%, $ALI HEALTH (00241.HK)$ 、 $BYD ELECTRONIC (00285.HK)$ Increased by over 33%.

DeepSeek Concept Stocks. $KINGDEE INT'L (00268.HK)$ 、 $MEITU (01357.HK)$、 $HORIZONROBOT-W (09660.HK)$ 、 $TUYA-W (02391.HK)$ 、 $KINGSOFT CLOUD (03896.HK)$ And the AI driving Concept. $BYD ELECTRONIC (00285.HK)$ 、 $BYD COMPANY (01211.HK)$ All recorded double-digit growth.

As of February 12, among the popular China Concept Stocks listed in the US. $Alibaba (BABA.US)$、 $PDD Holdings (PDD.US)$ 、 $NetEase (NTES.US)$、 $JD.com (JD.US)$、 $Tencent Music (TME.US)$All have risen by more than 10%.

What is the outlook for the market?

CITIC SEC stated that a series of innovative achievements in China's Technology industry have significantly boosted market confidence, accelerating the spring rally, and the revaluation of industry themes from Technology to Manufacturing remains a hot topic for market trade.

Recently,$Invesco (IVZ.US)$Raymond Ma, Chief Investment Officer of Mainland China and Hong Kong, published an article stating that:

We believe that various benefits brought by DeepSeek, including higher efficiency, cost savings, powerful computing power, and significantly lower barriers for various industries to use AI, may benefit many listed companies in China and ultimately lead to a revaluation of Chinese stocks.

He pointed out that the breakthroughs of DeepSeek may benefit various sectors in the Chinese stock market, increasing the productivity and income of many potential beneficiaries of AI technology.

It is believed that the application of DeepSeek will further promote the development of businesses in E-Commerce, Cloud Computing Service, AI Smart Phones, AI Laptops, Consumer Electronics, Semiconductors, and the Autos Industry.

In addition, China has strong capabilities in autonomous driving technology and humanoid robot technology, and these two areas will particularly benefit from the computational power improvements brought by advances in AI.

Raymond Ma believes that from a valuation perspective, Chinese stocks are currently valued at only 10 times PE, which is a 55% discount compared to the US stock market; the valuation of Chinese technology stocks has a 40% discount compared to the US stock market. This indicates significant upside potential. Comparing Hong Kong stocks and A-shares, he believes that from a valuation perspective, Hong Kong stocks are more attractive than A-shares.

How to bet on China Assets? Make good use of the investment theme feature, open Futubull > Market > ETF > Thematic ETF >Chinese Concept ETF, seize investment opportunities.

Editor/Somer