As economic split-screens go, surging Chinese stocks are one for the ages.
On one, Shanghai shares are testing 10-year highs as the market races past the S&P 500 and other top global bourses. On the other, an underlying economy is struggling under the weight of a deflation-generating property crisis, weak household demand and an aging population.
The disconnect, though, isn’t turning off the Shanghai bulls. This is, in part, thanks to optimism that President Xi Jinping’s Communist Party is going all-in on artificial intelligence investment.
Xi’s pledge to put China at the forefront of global AI penetration, even using the party’s “unwavering” phraseology to demonstrate resolve, has many investors playing the AI long game.
Alibaba Group’s stock surge may tell the story. On August 29, China’s e-commerce leader reported an AI-driven revenue surge, the latest sign that Alibaba is making serious headway…
