Recently, the Chief Investment Officer of China Mainland and Hong Kong at JP Morgan Asset Management, Lei Ma, stated that the various benefits brought by DeepSeek, including increased efficiency, cost savings, powerful computing capabilities, and significantly lowering the threshold for various industries to use artificial intelligence, could benefit many Chinese listed companies and ultimately lead to a revaluation of Chinese stocks. JP Morgan believes that as the development of artificial intelligence in China drives improvements in the Chinese economy and corporate profit prospects, the current valuations may present a good entry point for the Chinese stock market. The Chinese stock market had a good start in the Year of the Snake - following the Lunar New Year holiday, both the onshore and offshore Chinese stock markets rose. Reports have indicated that DeepSeek, a free artificial intelligence chatbot designed by a Chinese AI startup, can achieve competitive performance comparable to top overseas AI peers at a very low cost, leading to a surge in market popularity. JP Morgan believes that DeepSeek will change the game rules for the development of artificial intelligence in China, but the key question now is - is DeepSeek just a technological breakthrough in China? Or could it indeed become a catalyst for the revaluation of the Chinese stock market? The breakthrough in Chinese artificial intelligence will benefit various industries DeepSeek caused a sensation during the Spring Festival with its low cost, high performance, and open-source large language models. DeepSeek has lowered the threshold for various industries to use artificial intelligence technology, energizing the market and highlighting its potential for innovation. The breakthrough with DeepSeek could benefit various sectors of the stock market, increasing the productivity and income of many potential beneficiaries of artificial intelligence technology. The application of DeepSeek will further drive the development of businesses such as e-commerce, cloud services, AI smartphones, AI laptops, consumer electronics, semiconductors, and automobiles. China's strong capabilities in autonomous driving technology and humanoid robotics will benefit from the breakthroughs in Chinese artificial intelligence, especially with the improvement of computing capabilities. Opportunities for revaluation in the Chinese stock market Currently, the price-to-earnings ratio of the Chinese stock market is 10 times, 55% lower than the US market. At the same time, the price-to-earnings ratio of Chinese technology stocks is 40% lower than the US market. As for A-shares and H-shares, the valuation of H-shares is even more attractive. Market confidence in China's innovation capabilities has significantly increased. Industries utilizing artificial intelligence can improve production efficiency and achieve profit growth. There may be a situation of stock market revaluation, especially for Chinese stocks listed in Hong Kong, which are more attractive in terms of valuation. As artificial intelligence continues to develop and be applied, the profit prospects may improve.