The surge in China’s artificial intelligence efforts has caught the attention of investors. Chinese companies’ stocks have reached the highest levels in the past 3 years. China’s push for artificial intelligence is positively impacting technology companies’ stocks. The Chinese startup DeepSeek has disrupted the industry with low-cost artificial intelligence tools. DeepSeek’s technology has countered the influence of the US in this area and opened up opportunities for pressured Chinese companies. Recent developments have reignited investors’ hopes in the growth potential of Chinese companies. The Hang Seng China Enterprises Index recorded an increase of over 2% on Friday, approaching the peak level of October. The index, which has gained over 11% by 2025, has reached its highest level since February 2022. Companies like Xiaomi, Tencent, and Meituan have been prominent in this surge. Analysts suggest that the artificial intelligence rally could be sustainable for Chinese companies. Technological progress is being likened to a Sputnik moment for the country. China is expected to strengthen the upward momentum in the market by providing more incentives in March.