DeepSeek ignites AI boom in China's retail trading market

Integration of AI tools in China's retail-driven stock market changes prospects for brokerages and wealth managers
An undated image of DeepSeek logo. — Depositphotos

An undated image of DeepSeek logo. — Depositphotos

Hoping on the bandwagon of DeepSeek adoption, which saw an overwhelming spike soon after hitting the market, investors in China are increasingly opting for AI-powered chatbot DeepSeek and other trading tools.

This widespread acceptance for AI, or computational, tools in China marks a stark contrast to last year’s government crackdown on quantitative trading.

The integration of AI tools in the country's retail-driven stock market has reportedly changed the prospects for brokerages and wealth managers while introducing new risks, Reuters reported.

What makes the AI trend more surprising is last year's blame game by regulators and retail investors against quant funds for making the market volatile, which triggered a crackdown on the $260 billion sector. 

Now it appears that previous attitudes have gone as investors are rapidly resorting to AI as a key market tool.

"The future is the digital age, and AI will be vital," Hong Yangjun told a room packed with investors learning to trade with AI.

Mao Yuchun, founder of Alpha Squared Capital, an Arizona-based firm specialising in stocks and equities, recently conducted a weekend lecture on AI-driven stock trading, wherein every individual attendee paid 15,800 yuan ($2,179.91).

Known for its cost-efficient large language model, DeepSeek has not only influenced market trends but also elevated Chinese stocks.