America's decline and the rise of China ... exciting moves in the shares of technology giants

The value of the shares of major technology companies in China has risen by $ 439 billion this year, bypassing their US peers, in a strong performance that many investors see that it still has a growth field. A basket of equal weight includes seven major Chinese technology companies, including ‘Ali Baba Group Holding’ and ‘Tincent Holdings’, called ‘Societe General’, the name ‘The Seven Giants’, with more than 40% since the beginning of the year. On the other hand, the ‘seven major’ stock index, which includes the largest US technology companies, fell by about 10%, asking the ‘Nasdaq 100’ index to the edge of the correction. This sharp shift is a surprise for many in Wall Street. With the beginning of 2025, the Nasdaq index set new standards, while Chinese stocks still suffered from the effects of years due to organizational tightening and poor recovery in consumption. But suddenly Deepseek came to change the prevailing perceptions of China’s need for years, if already able, to achieve the level of American superiority in the field of artificial intelligence. The rise of Chinese technology shares since then has seen Chinese technology shares a sharp wave of rise, which even the suspicious investors have long been asking to get an optimistic look. These heights got an extra boost this week after Beijing announced its plans to improve his support for technology companies, as well as introducing a new set of artificial intelligence instruments from enterprises such as “Ali Baby”. “The success of Deep SIK, followed by the introduction of a set of artificial intelligence models from China, mentioned the world the need not to underestimate the power of Chinese innovation, despite the US restrictions imposed on the export of chips.” “There is still room for more momentum in Chinese investments in artificial intelligence due to low assessments,” she added. ‘The Seven Giants’ named ‘The Seven Giants’ on a group of Chinese Technology Giants, which also includes ‘Xiaomi’, ‘Byd’, ‘SialConductor Manufacturing International’ and ‘JD.com’ and ‘Net’, based on the market value and future growth prospects. These companies are currently distributing an average of 18 times for future profits, which is a discount of more than 40% compared to the American “seven big” group, according to a memorandum released on February 28 by a strategic team led by Frank Benzimra. The “Hang Singh Technology” index rose by more than 1% on Friday, increasing its weekly profits to about 10%. The index is currently trading at the highest level since late 2021. America shares for China’s shares at a time when things look in favor of Chinese stocks, previously considered “inaccurate”, US stocks have a series of challenges. It seems that the narrative that the US stock market will continue without stopping, as part of the concept of ‘US exceptional’, is vibrating because President Donald Trump has caused the global commercial system turmoil, and that US businesses and consumers raise concerns by setting up a series of customs duties. At the same time, the wave of the rise of the shares of major US technology companies, led by “Nvidia”, which led the market for years, dropped, as investors began to question the very high levels of their judgments, which asked them to claim the results of profits that exceeded expectations. China is an investment alternative, despite the wave of optimism about the Chinese market, some investors are still reluctant to enter due to the long record in achieving negative returns in the markets, unexpected changes in government policies and the increasing geopolitical tensions during the Trump. The ‘Hanging Singh Technology’ index is about 40% less than its peak in 2021, even after the profits achieved it this year. The return he has achieved over the past five years, which is about 18%, is also not compared to the gains of the “Nasdaq 100” index, which exceeded 130% during the same period. As concerns about US stock evaluation escalate, China has become an attractive investment option for many investors. In this regard, at Serne Ling, General Manager of Union Bancaire Privee emphasized that “the factors needed to support the superiority of the shares of Chinese technology companies are available, including high -level government support, profit repair and structural growth in the field of artificial intelligence.” He added that “the assessments of US technology stocks have risen over two years, and now the disappointments of the recent profits except for the total economic factors that push investors to wide sales,” and partly contribute to “the transformation of investments from the United States to Europe and China.”