Part 5/8:
Despite this uptick, broader challenges persist in the Chinese economy. The real estate market continues to struggle, inflationary pressures loom, and trade tensions with the US remain significant. With the CSI 300 index only rising modestly, the tech sector represents a stark contrast to an otherwise sluggish economic backdrop.
This recovery in investor sentiment also owes much to the resurgence of quantitative hedge funds, which have seen improved performance in recent months, fueling additional market optimism. However, these gains are cautioned by ongoing uncertainties regarding the monetization of AI services in China and competition from Western cloud services.