GUANGZHOU, China – The tech world is buzzing over the recent advancements in AI, and China is at the forefront. DeepSeek’s new AI model is making waves, sparking a rally in Chinese tech stocks and drawing significant interest in AI-driven investment vehicles.
AI Sector Sees Significant Gains
Data as of March 12th shows the CSI Artificial Intelligence index recording a year-to-date gain of 14.7%, according to Wind data. This surge is largely attributed to the reduced deployment costs of large language models. This cost reduction is fueling broader adoption across sectors like finance, government, and healthcare. Chinese tech giants, including Alibaba, Baidu, and Huawei, are quickly integrating DeepSeek’s technology into their existing infrastructure.
This momentum suggests that we’re on the cusp of an explosion in AI applications and end-user devices, which could reshape industries and drive innovation across multiple sectors.
ETFs: A Key Channel for AI Investment
With the accelerated growth of AI, investors are increasingly utilizing Exchange Traded Funds (ETFs) to gain exposure to AI-driven opportunities. E Fund Management (“E Fund”), the largest mutual fund manager in China, has been a leader in this trend, providing comprehensive access to the AI sector.
Notably, E Fund CSI Artificial Intelligence Thematic ETF (Code: 159819), known for having the lowest fee in its category, recently exceeded RMB 15.6 billion (USD 2.16 billion). This is an 83% increase since the beginning of this year, illustrating a strong demand among investors for AI-related investment tools.
Asset Management Industry Embraces AI
Chinese brokers and fund managers have begun integrating DeepSeek models into their operations. The model’s advanced reasoning capabilities and efficient resource utilization have made it an attractive tool for financial institutions looking to enhance their digital infrastructure.
E Fund, for example, has incorporated DeepSeek’s model into its daily operations, changing research, risk management, and client interaction processes. The company has also improved its proprietary AI model, EFundGPT, leveraging DeepSeek’s expertise in synthetic data and knowledge distillation.
About E Fund
Established in 2001, E Fund Management Co., Ltd. (“E Fund”) is a leading comprehensive mutual fund manager in China, with over RMB 3.5 trillion (USD 490 billion) in assets under management. E Fund offers investment solutions to both domestic and international clients, helping them achieve sustainable investment returns. E Fund’s client base includes both individuals and institutions, ranging from central banks, sovereign wealth funds, social security funds, pension funds, insurance and reinsurance companies, to corporations and banks. Focused on long-term investment since its inception, the company believes in the power of in-depth research and time in investing. E Fund is a pioneer and leading practitioner in responsible investments in China and is widely acknowledged as one of the most trustworthy and outstanding Chinese asset managers.
Source: E Fund. AuM includes subsidiaries. Data as of Dec 31, 2024. FX rate is sourced from PBoC.
