China’s tech stocks rallied in February as DeepSeek hype fueled investor appetite: Chinese tech stocks have been riding a wave of investor enthusiasm over the past month, with shares in some of the country’s biggest tech names rising on the back of last month’s unveiling of DeepSeek’s latest AI model that performed on par with its American rivals — but for a fraction of the development cost — writes the Financial Times. For many investors, DeepSeek has proved that Chinese tech companies can challenge US’ dominance in the sector, leading to bullish sentiment that has pushed China’s tech-heavy indices on an upward path.

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Chinese tech indices have been performing especially well in comparison to their US counterparts: The Hang Seng Tech Index of the 30 largest Hong Kong-listed tech companies — including many from the mainland — was up around 25% from its 2025-low on 13 January and performing better than its US peer, the Nasdaq 100, which ticked up 1.9% over February.

Some Chinese stocks have seen their share price increase nearly 50%: Zooming in, the biggest seven US tech conglomerates inched down 0.5% collectively over the last month, while Chinese tech firms have seen their shares skyrocket following DeepSeek’s dramatic debut. Alibaba made the biggest leap, gaining 49% in value in the past month, bolstered by reports that Apple is considering partnering with the e-commerce giant to roll out AI-powered features for iPhone users in China. Other now global household names saw significant gains, including automaker BYD with a 40% increase over the past month and Xiaomi with a 31% increase in share price.

This is all happening as US tariffs on Chinese products come into effect: Many market observers had predicted a rocky period ahead for Chinese stocks with US President Donald Trump’s threats and now imposition of a 10% levy on incoming Chinese goods — all USD 450 bn of them. However, investor appetite for the country’s tech sector and the expectations of policy support seem to have kept the country’s stock exchanges comfortably in the green, with the mainland’s CSI 300 up over 4%.

MARKETS THIS MORNING-

Asian markets are in the green in early trading this morning — Japan’s Nikkei is up 1.1%, the Shanghai Composite is up 0.1%, and the Kospi is looking at gains of 1%.

EGX30

29,662

+0.3% (YTD: -0.3%)

USD (CBE)

Buy 50.56

Sell 50.70

USD (CIB)

Buy 50.57

Sell 50.67

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,386

-0.3% (YTD: +2.9%)

ADX

9,659

+0.2% (YTD: +2.6%)

DFM

5,304

-0.6% (YTD: +2.8%)

S&P 500

6,052

-0.3% (YTD: +2.9%)

FTSE 100

8,807

+0.3% (YTD: +7.8%)

Euro Stoxx 50

5,406

+0.3% (YTD: +10.4%)

Brent crude

USD 74.96

-2.7%

Natural gas (Nymex)

USD 3.57

+1.3%

Gold

USD 2,929

-0.1%

BTC

USD 97,821

+1.5% (YTD: +4.8%)

THE CLOSING BELL-

The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 3.5 bn (5.6% below the 90-day average). International investors were the sole net buyers. The index is down 0.3% YTD.

In the green: Credit Agricole (+5.0%), GB Corp (+3.5%), and Palm Hills Development (+3.1%).

In the red: Abu Qir Fertilizers (-2.6%), Fawry (-2.2%), and Juhayna (-1.6%).

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