(Feb 17): Chinese tech earnings kick off this week with the outlook for Alibaba Group Holding Ltd and Baidu Inc in focus after the sudden rise of DeepSeek.

A Chinese artificial intelligence (AI) renaissance may counterbalance investor concern about increased US tariffs and help narrow the valuation gap with Silicon Valley peers, according to Bloomberg Intelligence.

Alibaba’s investors are already reaping the benefits with an US$87 billion (RM385.48 billion) boost for its Hong Kong listed shares, supported by its partnership with Apple Inc to roll out AI features in China. A potential meeting with co-founder Jack Ma and President Xi Jinping could also extend a rally in China’s stocks.

Globally, DeepSeek’s high-efficiency and low-cost model could drive an inflection point for AI adoption this year, Citi analysts said. Baidu and Tencent Holdings Ltd also announced they are integrating DeepSeek in their platforms.

In the banking sector, HSBC Holdings plc and Standard Chartered plc likely saw profits surge as cost-cutting efforts pay off, which comes as HSBC is starting a new round of job cuts in at its investment bank.

The overall earnings mix might see greater support from their wealth business, as loan balances are seen dropping further and US tariffs and commercial property risks constrain corporate demand. Commentary on savings strategies will paint a picture on where to go from here. 

Read also:
DeepSeek drives US$1.3 tril China stock rally as funds pile in

Uploaded by Tham Yek Lee