DeepSeek, an artificial intelligence (AI) company from mainland China, has triggered a rally in the Hong Kong and mainland stock markets. Andy Lui, Managing Director of Multi-Asset and Fixed Income Management for Asia at Schroders Global, stated that DeepSeek has caused the market to reevaluate the valuation of Hong Kong and mainland stocks, driving the breakthrough of Chinese tech stocks. He believes that this year, more focus will be on Asia, and the performance of Hong Kong and mainland stocks is expected to be no less than last year. The Hong Kong stock market ended a four-year decline last year. Lui pointed out that even though the Hang Seng Index surged by 18% last year, Hong Kong stocks are still relatively cheap, and the breakthrough in mainland AI technology is leading to a revaluation of Chinese tech stocks. However, the future rally will not solely depend on DeepSeek, but also on whether the Chinese economy can rebound and if large technology companies will further support the development of AI in China. Therefore, he currently gives a "neutral" rating to the Hong Kong and mainland stock markets. Lui noted that both Hong Kong and mainland stock markets can rise and fall quickly, so it is important to consider how long funds will stay and if they may leave after making profits. He believes that the "barriers have already been broken, valuations can rise again," as long as the Chinese economy stabilizes and continues to recover, without needing explosive growth, coupled with the continuous development of AI, it will not be difficult for the Hang Seng Index to return to 25,000 points. He does not think that Hong Kong stocks are that bad, they just lack a compelling narrative. As long as Hong Kong can prove that it is not solely dependent on the Chinese economy, but can also foster new growth stories or themes through AI breakthroughs, funds will flow in. Lui recommends that investors adopt a diversified asset allocation approach, as there are opportunities this year, but risks should be spread out. After experiencing the "double hit" of stocks and bonds in 2022, this year may be the third year of a global equity market rise, and he holds a cautious optimism towards the global stock market this year.