Concerns over the profitability of artificial intelligence ventures are driving increased volatility in Chinese AI-related stocks. China Merchants Securities International has advised investors to shift their focus toward defensive stocks within the technology sector to manage risk, according to KrASIA.
The firm specifically recommended considering technology companies that may be overlooked by the market, such as NetEase, which it has placed on its buy list. This suggests a strategic pivot toward more stable and established players amid the uncertain outlook for AI-driven growth stocks.
For Japanese investors, who closely monitor developments in Chinese technology markets due to regional supply chain ties and competitive dynamics, this cautious stance underlines the importance of diversification and risk management in the current environment.