Chinese concept stocks have recently shown exceptional performance, signaling a shift in investor sentimentThe U.S. stock market had a mixed closing on February 14, with the Dow Jones Industrial Average falling by 0.37%, finishing at 44,546.08 pointsConversely, the S&P 500 decreased marginally by 0.01%, closing at 6,114.63 points, while the Nasdaq index saw an uptick of 0.41% to reach 20,026.77 pointsOver the week, all three major U.S. indices rebounded, with the Dow Jones gaining 0.55%, the S&P 500 appreciating by 1.47%, and the Nasdaq climbing by a notable 2.58%.

Of particular note is the rise of the Nasdaq Golden Dragon China Index, which increased by 2.27%, hitting a new closing height not seen since October 8 of the previous year, contributing to a weekly increase of 7.29%. Several Chinese concept stocks closed with significant gains, including a staggering rise of over 80% for WeRide, approximately 20% for Kingsoft Cloud, more than 11% for Pony.ai, and exceeding 10% for Bilibili.

Facebook’s continuous rise marks an all-time high

Among major U.S. tech stocks, Nvidia saw an increase of more than 2%, while Apple and Facebook (Meta) each rose over 1%. However, other tech giants faced minor setbacks: Tesla dropped by 0.03%, Google dipped 0.54%, Microsoft fell 0.51%, and Amazon decreased by 0.73%.

What stands out is Facebook’s recent price surge, setting new historical benchmarksAfter diving into the augmented reality and AI domains, Meta is making its next major commitment: AI-driven humanoid robots

Advertisements

Insider reports indicate a significant investment in this area, including the formation of a new team within Reality Labs to spearhead developmentThe aim is to create humanoid robots capable of performing tasks akin to those done by humans, starting with household choresMeta is also planning to design core AI, sensors, and software for these robots before handing off manufacturing and sales to other companies.

In parallel, Apple is ambitiously working to roll out its AI functionalities in China by midyearRecently, its stock price has shown resilience with steady gainsInsiders shared that Apple has multiple teams operating in both China and the U.S., focusing on adapting the Apple Intelligence platform for the Chinese market, with a launch targeted for May at the earliest.

Dell Technologies experienced a midday rally, improving by about 6%, and closing with an increase of over 3%. Citing sources, Bloomberg reported that Dell is nearing an agreement to sell $5 billion worth of AI servers to Elon Musk's xAIThese Dell servers will incorporate Nvidia's GB200 semiconductors, with deliveries expected in 2025.

In the banking sector, stocks collectively rose, with JPMorgan inching up by 0.09%, Goldman Sachs increasing over 1%, Citigroup appreciating around 3%, Morgan Stanley climbing more than 1%, Bank of America up over 1%, and Wells Fargo increasing by about 1%。

Stocks in the semiconductor industry displayed mixed results; the Philadelphia Semiconductor Index rose by 0.09%. Micron Technology jumped over 4%, Marvell Technology increased by more than 2%, Microchip Technology gained over 2%, and Nvidia surged over 2%. However, in contrast, Applied Materials fell by over 8%, ASML dropped more than 3%, ARM declined over 3%, and Intel slid by more than 2%.

Nasdaq Golden Dragon China Index up by over 2%

Fueled by a notable rise in Hong Kong's internet stocks, the Nasdaq Golden Dragon China Index surged nearly 4% at the beginning of the day before stabilizing, ultimately closing up over 2%.

Popular Chinese concept stocks like WeRide surged over 80%, Kingsoft Cloud gained around 20%, Pony.ai rose more than 11%, and Bilibili increased by over 10%. Alibaba, XPeng Motors, and JD.com each saw rises of over 4%, while Futu Holdings and New Oriental climbed more than 3%, and Pinduoduo and Li Auto gained over 2%.

WeRide soared to 40.41 yuan at the beginning, triggering a circuit breaker and peaking at nearly 140%. Following WeRide's stock surge, Pony.ai experienced a robust increase of over 17%, ultimately closing up by 11.31%.

On February 14, Nvidia’s filing of a 13F report with the U.S

Advertisements

Securities and Exchange indicated that, as of December 31, 2024, the company holds 1,738,600 ADS shares of WeRide, valued at approximately $24.65 millionBack in September 2017, WeRide, then newly established, raised about $60 million in Pre-A financing, with Nvidia being one of the investors.

WeRide, founded in 2017, has emerged as a premier self-driving technology company conducting research, testing, and operation across 30 cities in 7 countries globallyIt is the only tech enterprise holding autonomous driving licenses in China, UAE, Singapore, and the U.SThe company is dedicated to developing safe and reliable autonomous driving technologies, covering intelligent mobility, smart freight, and intelligent sanitationIt has entered a stage of commercial deployment with a five-product matrix, offering a range of services from ride-hailing to on-demand public transportation and smart sanitation.

Kingsoft Cloud rose by about 20%. It was reported that the Kingsoft Cloud computing platform and container service have now supported the DeepSeek-R1 model series, enabling users to quickly deploy the model services through two solutions: computational platform and container service.

Zhihu's stock increased over 15%. Recently, Zhihu Direct Answers integrated the DeepSeek-R1 model, a move seen by several brokerages as enhancing Zhihu's potential for future commercialization, highlighting the growing financial interest in content platforms.

Regarding the sustained performance of Chinese concept stocks, Shenwan Hongyuan pointed out that since the “Made in China 2025” initiative was proposed, the nation’s long-term investments in technology and manufacturing have begun to bear fruit

Advertisements

Advertisements

Advertisements