Hype around DeepSeek: Chinese stocks soar due to unfounded rumours

By: Nastya Bobkova | 29.01.2025, 06:08
Speculation over DeepSeek ties: why Chinese stocks are going up Rumours of links with DeepSeek have led to an unjustified rise in Chinese companies' shares. Source: South China Morning Post

The Chinese company DeepSeek attracted global media attention after its activities caused a massive drop in US tech stocks. As a result, Nvidia shares fell by almost 20%.

Here's What We Know

In China, the "hype" around DeepSeek has led to a rapid rise in the shares of some public companies that allegedly have ties to the company. The problem is that there is no evidence that these companies have ever invested in or collaborated with DeepSeek.

Companies such as Huajin Capital and Zhejiang Orient, which are rumoured to have invested in DeepSeek, saw their shares rise by 10% on Monday. Research firm Sublime China Information surged 20%, claiming to be working with DeepSeek to develop its AI models, the highest legal daily gains on Chinese exchanges.

However, Sublime China Information denied that it was working with DeepSeek, and Huajin Capital denied that it had ever announced an investment in the company. Zhejiang Orient did not comment, and there is no public evidence of their investment in DeepSeek.

DeepSeek. Illustration: Getty Images
DeepSeek. Image: Getty Images

Rumours of these connections likely originated from unofficial Chinese lists of companies allegedly linked to DeepSeek that quickly went viral.

DeepSeek is a privately held company that has never announced any investment from venture capitalists. No venture capitalist is mentioned in Chinese corporate records.

DeepSeek's founder, Liang Wenfeng, is the sole beneficial owner of all three companies that form DeepSeek. In an interview with a Chinese media outlet, he stated that the company is funded by High-Flyer, and that it has no plans to attract new investments at this time.

Source: TechCrunch