China’s AI self-reliance presents opportunities but valuations, geopolitics are risks: BofA

The nation’s tech firms are catching up with overseas rivals while a wave of high-profile listings has broadened investment opportunities China’s push for tech self-reliance is opening new investment opportunities in artificial intelligence stocks, but stretched valuations and geopolitical tensions make the sector an increasingly risky bet, according to Bank of America. “Localisation is no longer just a policy ambition,” Wu said. “The domestic players are closing the gaps in technology standards, gaining market share [and] making tangible progress.” The bank divided Chinese AI-related stocks into three broad groups, each offering a different risk-return profile.

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