Chinese AI stocks have driven a strong rally to start the year, while analysts see stimulus and household savings as further reasons to be positive.
CHINA 50 – Daily Chart
Resistance for the China 50 is at 15,777, which could be tested over the next 1-2 weeks. That could set up a decisive breakout for the year ahead.
One dynamic in Chinese stocks is that households are not fully engaged. Last year, households were hoarding cash at record levels. In September, they added nearly Rmb3tn to deposits, the largest increase in six months, to a record Rmb160tn. Domestic savers have been reluctant to chase the stock market, but that could change if the market continues to show reliable strength.
Chip IPOs have taken advantage of the market’s appetite for a tech challenge to the United States. Shares of Shanghai Biren Technology, an AI chip designer, saw gains of almost 120% in the first hours of trading on Friday.
Chinese chipmakers have been gaining ground amid increasingly tight export controls from the United States, which are hampering U.S. manufacturers. “Nvidia’s once-dominant position in China’s AI chip market has effectively evaporated in 2025, said Andrei Zakharov.
