The global hype around the ChatGPT tool has reached China’s stock market, igniting eye-popping rallies in artificial intelligence-related shares following months of lackluster performance.
Beijing Deep Glint Technology soared as much as 16 percent on Wednesday, taking its 2023 gains to over 60 percent. Hanwang Technology has jumped more than 40 percent during the period, by far beating the 7 percent advance in the benchmark CSI 300 Index.
The surge reflects heightened interest in all things AI after ChatGPT – an AI tool made by research lab OpenAI – took the Internet by storm after its launch in November. China’s search giant Baidu is planning to roll out a similar chatbot, which has helped draw inflows into the theme, according to Huatai Securities USA.
China’s AI firms have missed out on the reopening rally that took off in late October amid concerns over their weak balances and slow progress in delivering lofty goals. CloudWalk Technology, whose shares have advanced 50 percent this year, estimates its 2022 net loss to widen as much as 48 percent from a year earlier to 934 million yuan (S$182 million).
“There has been the fervent pursuit of the ChatGPT concept in China, one of the countries that are most active in championing AI, with many large companies preparing to launch similar products,” said Mr. Shen Meng, director at Chanson & Co in Beijing.
“The rally may fade after a short-term run,” unless supported by material progress by the firms, he added.