Chinese tech stocks outperform U.S. counterparts

Chinese tech stocks are outperforming U.S. stocks, with the MSCI China index seeing significant gains while the S&P 500 has fallen into correction. This shift is driven by major companies known as the "Fab Four": Baidu, Alibaba, Tencent, and Xiaomi. These companies are benefiting from advancements in artificial intelligence. Alibaba and Tencent have recently launched competitive AI models, while Baidu is expanding its AI capabilities in cloud services and autonomous driving. Xiaomi continues to focus on its electric vehicles and smart home products. Investor interest in Chinese stocks is rising, with record net buys from mainland investors in Hong Kong. International hedge funds are also increasing their investments, as concerns about the U.S. economy grow.