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  "description": "While US investors fear AI disruption, China’s markets are surging with newly listed tech firms posting explosive gains as capital floods into the country’s fastest-rising AI champions.",
  "path": "/china-bucks-global-ai-scare-trade-as-investors-bet-on-growth/",
  "publishedAt": "2026-02-22T13:50:55.000Z",
  "site": "https://www.ainewsinternational.com",
  "textContent": "While US markets are unsettled by fears of artificial intelligence disrupting established industries, _Chinese investors are leaning into the opportunity_ aggressively backing companies positioned to benefit from the AI boom.\n\nIn the United States, the so-called _“AI scare trade”_ has triggered selling in software firms and wealth managers amid concerns that rapid AI advances could erode long-standing profit models.\n\nIn China, however, the narrative is markedly different.\n\n* * *\n\n## **Growth Over Fear: A Different Investor Mindset**\n\nRather than worrying about disruption, _Chinese markets are focused on expansion, adoption, and cost savings_. Investors are pouring money into companies seen as direct beneficiaries of AI development.\n\n“China has been relatively insulated from the AI scare trade because the market is still focused on what AI can aid rather than what it can take away from incumbents,” said Charu Chanana of Saxo Markets.\n\nThe contrast is stark:\n\n  * **US markets:** Anxiety over shrinking profit pools\n  * **China markets:** Optimism about AI penetration and scalability\n\n\n\n* * *\n\n## **New AI Listings Lead the Rally**\n\nRecently listed Chinese AI developers have become _market darlings_.\n\nAmong the standout performers:\n\n  * MiniMax Group Inc.\n  * Zhipu (Knowledge Atlas Technology)\n\n\n\nBoth companies debuted in Hong Kong in January and saw their shares _more than double in February_. Since listing, **Zhipu has surged over 500%** , while **MiniMax has climbed nearly 490%**.\n\nStrong buy ratings from global banks including Morgan Stanley, Jefferies Financial Group Inc., and UBS Group AG have added fuel to the rally.\n\nWith major global AI pioneers such as OpenAI and Anthropic still privately held, publicly traded Chinese firms offer _rare pure-play exposure_ to advanced AI model development.\n\n* * *\n\n## **A Protected Domestic Market Advantage**\n\nOne reason for China’s distinct investor behavior lies in its _relatively insulated competitive landscape_.\n\nRegulatory barriers and geopolitical tensions limit foreign AI companies’ access to the domestic market. According to Gary Tan of Allspring Global Investments, overseas large language models have restricted entry — giving local developers _a clear runway for growth_.\n\nThis structural difference has helped separate Chinese AI valuations from the more cautious sentiment seen globally.\n\n* * *\n\n## **The Chipmakers Join the Surge**\n\nThe rally has extended beyond AI model developers to semiconductor firms tied to the ecosystem.\n\n  * Shanghai Biren Technology Co. is up more than 80% since its early January debut.\n  * Montage Technology Co. has surged nearly 100% since listing in February.\n\n\n\nThe broader AI supply chain is benefiting from what analysts describe as a _sector-wide re-rating_.\n\n* * *\n\n## **Private Market Valuations Add Momentum**\n\nChinese AI stocks are also riding a halo effect from eye-popping private market valuations abroad.\n\n  * OpenAI is reportedly seeking to raise over $100 billion at a valuation exceeding $850 billion.\n  * Anthropic recently secured $30 billion at a $380 billion valuation.\n\n\n\nAccording to analysts at Jefferies, these funding milestones, alongside rapid model upgrades, suggest _further upside to China AI valuations_.\n\n* * *\n\n## **Model Breakthroughs Reignite Enthusiasm**\n\nTechnological milestones are reinforcing investor confidence.\n\nZhipu’s latest large language model, GLM-5, recently topped global open-source rankings on benchmarking platform Artificial Analysis, _the highest placement ever achieved by a Chinese AI lab_.\n\nMeanwhile, DeepSeek, whose breakthroughs previously sparked global attention on China’s AI sector, is expected to release a next-generation model soon, potentially lifting sentiment across the industry.\n\nA video-generation app rollout by ByteDance also sparked gains in film and media stocks, underscoring how _each new AI launch is being treated as a catalyst_.\n\n* * *\n\n## **Risks Beneath the Optimism**\n\nDespite the enthusiasm, some analysts caution that _valuations may be difficult to sustain_ if revenue growth fails to match expectations.\n\nThere are also concerns that investors, in focusing heavily on AI champions, may be overlooking broader disruption risks that could weigh on corporate earnings across other sectors.\n\nStill, for now, capital continues rotating into pure AI plays, while diversified internet giants see periodic profit-taking.\n\n* * *\n\n## **A Tale of Two Markets**\n\nMorgan Stanley projects MiniMax’s revenue could approach $700 million by 2027 implying _potential tenfold growth within two years_.\n\nIn contrast to the caution dominating US markets, China’s AI narrative remains centered on _acceleration, adoption, and market expansion_.\n\nWhere American investors see disruption risk, Chinese markets see _opportunity_.\n\n* * *\n\n## **Fast Facts**\n\n**Why is China less affected by the “AI scare trade”?**\nChina’s market is _focused on AI-driven growth and adoption_ rather than disruption. Regulatory barriers also limit foreign competition, giving domestic firms like MiniMax Group Inc. and Zhipu more room to expand.\n\n**Which companies are leading the rally?**\nNewly listed AI developers including MiniMax and Zhipu have posted _triple-digit gains_ since their Hong Kong debuts. Semiconductor firms such as Shanghai Biren Technology Co. have also surged alongside the AI boom.\n\n**What risks could challenge the rally?**\nValuations may be hard to sustain if _earnings growth fails to match investor optimism_. Analysts at Jefferies Financial Group Inc. caution that broader AI-driven disruption could eventually pressure profits across multiple sectors.",
  "title": "China Bucks Global ‘AI Scare Trade’ as Investors Bet on Growth",
  "updatedAt": "2026-02-22T13:50:55.000Z"
}