Hopes of AI monetisation to boost China tech stocks amid war, market scares
Chinese tech stocks prove steadier than regional and US peers, as frenzy over OpenClaw shows a possible way forward, analysts say
Chinese technology stocks are gaining momentum as they emerge largely unscathed from the US-Iran conflict and artificial intelligence “scare trades”, with agentic AI breakthroughs like OpenClaw sparking fresh monetisation hopes, according to investment experts.
Global markets have been hit in recent weeks by an oil-price shock linked to the war in the Middle East, as well as an AI-driven sell-off over fears the technology could wipe out white-collar jobs.
However, Chinese tech stocks remained steadier than their regional and US peers during the period. The MSCI China Tech 100 Index eased 1 per cent, while the Stoxx Asia Technology 100 fell 10 per cent and the Nasdaq 100 dropped 2.3 per cent. Energy and key materials disruptions have dampened sentiment towards the AI supply chain in the region excluding China.
Chinese tech companies were largely insulated from external shocks thanks to their relatively cheap valuations as investors sought diversification, as well as their own aggressive push to review their business models, said Oliver Cox, portfolio manager for emerging markets and Asia-Pacific equities at JPMorgan Asset Management.
“[China’s software companies] are already pushing hard on their AI strategies, so AI disruption is there,” Cox said. He added that these firms tended to be consumer-facing, focusing on growth and penetration, while US counterparts primarily catered to enterprises that might develop their own AI tools in the future.
China’s “starting valuation” also had an edge amid market corrections, Cox said. He co-manages the JPMorgan Pacific Technology fund, which allocated 31.1 per cent to China and gained 10.7 per cent this year through January 30, according to its fact sheet.