# ChatGPT mania pumps up Chinese AI technology stocks Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-02-07 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Chinese AI Stocks Surge Amid ChatGPT Frenzy Meta Description: Discover how mainland investors are driving up AI tech company shares in response to the global hype surrounding the innovative ChatGPT chatbot. URL: https://financedigest.com/chatgpt-mania-pumps-up-chinese-ai-technology-stockshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-02-07t061831z1lynxmpej16078rtroptp4openai-chatgpt-1736814480557-compressed.jpg) SHANGHAI (Reuters) – Chinese artificial intelligence stocks are the latest rage in mainland markets as the global frenzy around the Microsoft-backed ChatGPT chatbot spurs speculative bets on the revolutionary computing technology. Just two months after its launch, ChatGPT – which can generate articles, essays, jokes and even poetry in response to prompts – has been rated the fastest-growing consumer app in history. That has pushed Google owner Alphabet Inc to plan its own chatbot service and using more artificial intelligence for its search engine. While ChatGPT is not accessible in China, mainland investors are still pumping up the shares of AI technology [companies](https://www.financedigest.com/5-top-tips-on-how-to-grow-a-technology-company.html "5 Top Tips on how to grow a technology company") such as Hanwang Technology Co, TRS Information Technology Co and Cloudwalk Technology Co. The CSI AI Industry Index, which includes larger capitalized companies such as iFlytek Co, is up about 17% this year, outperforming the benchmark CSI300 Index’s 6% rise. To be sure, there is no indication that these AI [companies are close](https://www.financedigest.com/closing-a-limited-company-three-alternatives-to-liquidation.html "Closing a limited company: three alternatives to liquidation") to pushing out a ChatGPT-like product. The closest seems to be [search engine](https://www.financedigest.com/boosting-your-search-engine-optimization-content.html "Boosting Your Search Engine Optimization Content") giant Baidu Inc with plans to complete testing of its “Ernie bot” in March. Its [shares surged more than 15% on Tuesday](https://www.financedigest.com/monte-dei-paschi-to-have-underwriting-consortium-for-share-sale-by-tuesday-source.html "Monte dei Paschi to have underwriting consortium for share sale by Tuesday – source") after making the announcement. The [industry as a whole tends to first speculate on expectations before only later trading](https://www.financedigest.com/eu-recovers-appetite-for-trade-in-green-industry-push.html "EU recovers appetite for trade in green industry push") on actual results,” said Zhang Kexing, general manager of Beijing Gelei Asset Management. Shares of Hanwang Technology, which makes products that enable intelligent interactions, jumped by their daily limit of 10% on Tuesday, the seventh consecutive session it has reached that limit since markets reopened from the Lunar New Year holiday, [boosting prices](https://www.financedigest.com/netflix-cuts-prices-in-some-countries-to-boost-subscriptions-shares-drop.html "Netflix cuts prices in some countries to boost subscriptions, shares drop") by more than 60% so far in February. The company [expects to report an annual loss](https://www.financedigest.com/dollar-set-for-weekly-loss-amid-expectations-fed-will-slow-hikes.html "Dollar set for weekly loss amid expectations Fed will slow hikes") for 2022 but believes it has an edge over an interface like ChatGPT because its model can produce more precise results for clients. Cloudwalk shares retreated 5.5% on Tuesday, but have nearly doubled in the seven trading [days since the Lunar New Year](https://www.financedigest.com/explainer-international-womens-day-date-history-and-this-years-theme.html "Explainer-International Women’s Day: date, history and this year’s theme") holidays. On Tuesday, the company cautioned investors, saying its losses deepened in 2022, it has not cooperated with OpenAI, and has generated no [revenues from ChatGPT-related services](https://www.financedigest.com/adding-revenue-through-rd-tax-relief-service-2.html "Adding Revenue through R&D Tax Relief Service") and products. Other [companies that have disclosed their progress in AI technology](https://www.financedigest.com/how-financial-services-companies-can-successfully-utilise-low-code-and-no-code-technologies.html "How financial services companies can successfully utilise low-code and no-code technologies") include TRS Information Technology, and Beijing Haitian Ruisheng Science Technology Ltd. Their [share prices have soared](https://www.financedigest.com/uks-argo-blockchain-shares-soar-on-deals-to-avoid-bankruptcy.html "UK’s Argo Blockchain shares soar on deals to avoid bankruptcy") too. The [price surge](https://www.financedigest.com/unicredit-sets-out-8-billion-aid-package-for-italy-clients-hit-by-surging-prices.html "UniCredit sets out billion aid package for Italy clients hit by surging prices") has stretched valuations. TRS for example, [trades at nearly 60 times](https://www.financedigest.com/how-to-use-algorithms-to-save-time-and-make-money-when-trading-currency-crypto-shares-etc.html "How to use algorithms to save time and make money when trading (currency, crypto, shares etc)") earnings, while Haitian Ruisheng’s price-to-earnings ratio is more than 240. Retail [investor Lu Deyong has purchased shares in TRS and iFlytek and is seeking to profit](https://www.financedigest.com/aviva-boosts-investor-payouts-after-profit-beat.html "Aviva boosts investor payouts after profit beat") from the ChatGPT hype. “ChatGPT is just a hot idea,” he said. However, he doesn’t think “China can realize such a [technology in the short](https://www.financedigest.com/businesses-are-investing-in-technology-to-improve-customer-experience-but-many-are-still-falling-short-of-giving-customers-what-they-want.html "Businesses Are Investing in Technology to Improve Customer Experience, but Many Are Still Falling Short of Giving Customers What They Want") term. For us retail investors, we prefer smaller [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") with this concept to make some quick money,” Lu said. (Reporting by Samuel Shen, Jason Xue and Brenda Goh; Editing by Vidya Ranganathan and Christian Schmollinger) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---