UBS GWM: US-China AI Ecosystems Will Develop Independently
N.R. Finch
UBS GWM strategist Suresh Tantia says the US–China AI split is now 'very clear,' pointing to two diverging investment tracks — mainland-listed AI supply-chain stocks benefit from reduced competition, while Hong Kong internet names sit at 'extremely low' valuations.
What does "separate ecosystems" actually mean?
Tantia's core call: the US and China will each build their own independent AI ecosystem, and the trend is "very clear."
This means → the global AI industry will not converge into one market — it is splitting into two parallel systems, each with its own chips, models, apps, and supply chains.
In plain terms = picture two separate playgrounds — one Chinese, one American — each running its own game.
Why does this help mainland AI supply-chain stocks?
Tantia notes that mainland-listed AI supply-chain stocks benefit from relatively less competition.
This means → an independent ecosystem acts as a wall — foreign giants cannot enter the Chinese market directly, so domestic suppliers capture a protected share.
This reflects a counterintuitive logic: decoupling is a macro risk, but for A-share AI supply-chain names, it is a near-term tailwind.
Why are Hong Kong internet stocks worth watching?
Hong Kong-listed internet companies have lagged mainland AI supply-chain stocks, and valuations sit at what Tantia calls "extremely low" levels.
This means → the valuation gap is already wide — if the payoff from AI ecosystem-building eventually flows to the application layer, HK internet is the cheapest entry point.
Tantia's advice is blunt: it takes patience — this is not a short-term trade but a medium-to-long-term bet on valuation recovery.
Content is for reference only, not financial advice.