KE Holdings Inc., the Chinese real estate services company, saw its stock soar by 5.03% in Thursday's pre-market trading session. This significant jump appears to be driven by renewed investor confidence in Chinese technology companies and the recent success of the artificial intelligence (AI) start-up DeepSeek.
The surge comes amid a broader rally in Chinese stocks listed on U.S. exchanges, with companies like Li Auto, Bilibili, Alibaba, and PDD Holdings all experiencing notable gains. This positive sentiment was fueled by the U.S. Postal Service's announcement that it will resume accepting international mail and packages from China and Hong Kong, reversing an earlier decision to halt some overseas shipments.
Furthermore, the remarkable success of DeepSeek, a Chinese AI start-up, has prompted investors to reassess the valuation of the nation's technology companies, which currently trade at half the valuation of the "Magnificent Seven" U.S. tech giants. Deutsche Bank analysts believe that 2025 could be the year when the investing world recognizes China's ability to outcompete the rest of the world, leading to a potential disappearance of the "valuation discount" for Chinese stocks.
