Ignore overseas "AI panic" and focus on the Chinese market where AI winners are being hyped.

When the US market is in a "AI panic trading", with investors selling off software companies and wealth management institutions, Chinese investors are actively pursuing concept stocks related to artificial intelligence. This starkly different market sentiment reflects fundamental differences in how investors in the two regions view AI technology: the US is concerned about existing business models being disrupted, while China focuses on growth opportunities and cost reduction potential. Domestic companies that have released new models or upgraded existing products this month have become investor favorites. MiniMax and KNOWLEDGE ATLASAI are the most typical examples, with both companies' stock prices doubling in February. Bullish ratings from Wall Street investment banks such as Morgan Stanley have further fueled market enthusiasm, with pure AI concept stocks taking funds away from traditional internet giants. The difference in investment logic lies behind this market differentiation. Charu Chanana, Chief Investment Strategist at Shengbao Market, stated that the Chinese market is still focused on how AI can help rather than what it will take away from existing enterprises. While US investors are anxious about competition threatening lucrative profit pools, China is still focused on market penetration. Newly listed AI stocks lead the way MINIMAX-WP (00100) and KNOWLEDGE ATLAS (02513) AI have been favored by investors, partly because publicly listed companies that build large models globally are scarce. Both companies listed in Hong Kong in January, with KNOWLEDGE ATLASAI's stock price briefly soaring by 524% and MiniMax by 488%. In comparison, industry pioneers OpenAI and Anthropic have yet to go public. Other recently listed Chinese AI-related stocks have also shown strong performance. Chip design firm BIREN TECH has risen by over 80% since listing on January 2, while Montage Technology has surged by over 98% since its listing on February 9. Domestic companies also benefit from the halo effect, with valuation continuously climbing in subsequent rounds of private financing for two US companies. OpenAI is close to raising over $100 billion in funding at a valuation of over $850 billion, while Anthropic raised $30 billion at a valuation of $38 billion in early February. Technological breakthroughs boost valuation New model releases and financing data have driven a reassessment of valuations. Jefferies analysts, including Edison Lee, wrote in a research report on February 13: "There is room for upward valuation of Chinese AI." KNOWLEDGE ATLASAI's latest large language model GLM-5, which was released recently, surpassed a competitor launched by Moonshot AI a few weeks ago on the benchmark testing website Artificial Analysis, becoming the leader in the global open-source model ranking. According to the Jefferies report, this is the highest ranking ever achieved by a Chinese AI lab. Some of the market enthusiasm is related to DeepSeek, with expectations that DeepSeek will soon release its next-generation model, potentially boosting the entire sector. The market also anticipates that the cost competitiveness of Chinese AI models like DeepSeek may accelerate user adoption. Currently, domestic investors view every new AI development as a catalyst, benefiting not only developers but also users of new tools. ByteDance recently launched a video editing application, leading to a collective rise in stocks for the film and television media sector. Gary Tan, portfolio manager at Allspring Global Investments, stated, "The divergence between Chinese market participants and global investors reflects the unique structure of the Chinese AI landscape." However, some market observers warn that if profit growth cannot keep up with investor optimism, the reevaluation of valuations may not be sustainable.