China Internet Stocks Catch an AI Lift as Beijing Warms to Tech

China’s internet stocks are experiencing a notable resurgence after a long period of underperforming the broader market. This shift follows improved earnings expectations and clear signals that Beijing is moving toward a more supportive stance on the domestic technology sector.

Investor confidence grew significantly this week after Chinese regulators officially approved Apple Intelligence for use on the iPhone. This decision concludes a two-year regulatory waiting period and represents a major milestone for foreign tech integration within the Chinese market.

As part of this arrangement, the local version of Apple’s AI tools will rely on the Qwen model developed by Alibaba Group. Baidu is also confirmed as a primary partner for these tools. Following the announcement, US-listed Chinese technology shares saw substantial gains, with Alibaba stock rising by as much as 7.9%.

Market observers note that this development reflects a change in the regulatory environment as Beijing seeks to balance oversight with the necessity of advancing its domestic artificial intelligence capabilities. The involvement of major local players like Alibaba and Baidu in global tech supply chains signals potential for continued growth in the sector. Traders and analysts are closely monitoring these signs of policy thawing to see if this trend extends to other areas of the Chinese digital economy.