The recent surge in the popularity of the DeepSeek concept has stirred the financial markets, especially within China's A-sharesFollowing the celebration of the Lunar New Year, this concept took center stage after a robust performance during two consecutive trading daysOn February 6th, major stock indices saw significant increases, with approximately 4,800 individual stocks experiencing gains throughout the trading day.

As of the closing bell on February 6th, the Wind DeepSeek Index observed an impressive rise of over 6%, which positioned it as a leading performer in the A-share marketOf the 39 companies included in this index, a substantial 35 reported upward stock price movement, with over ten stocks hitting the daily price limitAmong the notable performers, stocks belonging to Daily Interaction, Huajin Capital, and Zhejiang Oriental garnered three consecutive price limit increases, while companies like Anheng Information also benefitted significantly with two trading limit hits.

In the midst of this fervent trading environment, over ten publicly listed companies issued notices regarding unusual fluctuations in their stock trading

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Some disclosed that their business operations linked to the DeepSeek model would have an uncertain impact on their performance or represented a small proportion of their overall metricsMeanwhile, others clarified their lack of any business partnerships or equity investments with DeepSeek.

The rise of the DeepSeek concept can largely be attributed to its ability to reshape global AI competitivenessAs the DeepSeek model emerged, it generated anticipation in the market, particularly for investors looking to mobilize their capital in sectors such as cloud computing and AI applicationsThe significant influx of funds into the DeepSeek-related stocks displays an urgent market response to reassess the technological potential of Chinese companies in the light of ongoing innovations in artificial intelligence.

A report from Huatai Securities highlights that, over the past two years, a marked divergence in valuations between Chinese and American tech stocks has emerged

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A major contributing factor to this trend is the advancement of AI technologiesThe low-cost yet high-performance nature of DeepSeek is prompting discussions about capital expenditures and its various application scenarios, suggesting that it could catalyze a reevaluation of the market value of Chinese tech enterprisesThis potential for reassessment, in turn, could reimpose a new equilibrium on the valuations of tech stocks across both the Chinese and U.Smarkets.

The implications of DeepSeek's influence have been felt globally, illustrated starkly by the over 10% decline in stock prices of several American tech giants such as Nvidia and TSMC following the high-profile emergence of DeepSeekIn stark contrast, during the same period, the Wind DeepSeek Index on the A-shares market surged by over 10.96%, showcasing the robust performance from twenty related stocks, with six companies reaching their price limit increases.

During the Lunar New Year celebrations, the DeepSeek concept enjoyed a hot streak in Hong Kong's stock market, which transitioned into a dual strong performance in the A-share market after the holiday season

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From January 27th to February 6th, 39 companies within the DeepSeek Index saw a remarkable uptick in their stock pricesAmong these, 27 companies reported price increases of over 10%, with 16 surpassing 20%, and six exceeding 40%. Stocks like Daily Interaction and Paralleled Technology were particularly noteworthy, achieving staggering price hikes of over 60%.

Moreover, over 20 DeepSeek-related stocks consistently hit their trading limits during the three most recent market days, showcasing sustained investor interestCompanies such as Daily Interaction, Huajin Capital, and Zhejiang Oriental each achieved three consecutive limit-up days, while others, like Anheng Information and Tuowei Information, benefitted from two price limits.

Analyzing the industry breakdown reveals that most companies listed under the Wind DeepSeek concept primarily belong to the information technology and communications services sectors, spanning various niches including IT services, software development, computing equipment, gaming, and digital media.

Huatai Securities further argues that DeepSeek significantly lowers the entry barriers for developers within the downstream application ecosystem, expediting the broader application of AI technology

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The launch of new models from DeepSeek is anticipated to spur innovation within the open-source community, subsequently enhancing the expansion of potential application scenariosThe findings from CITIC Securities echo this sentiment, positing that the unveiling of this new generation of models signifies a gradual move toward widespread AI adoption across various sectors.

Amidst this enthusiasm, some companies have taken the initiative to clarify their affiliations with DeepSeekSeveral firms released announcements stating that their operations dependent on the DeepSeek model do not significantly influence their financial performance, and in many cases, they have no business relationship with the entityFor example, prominent firms like Anheng Information, Yuke Tech, and Ankai Micro have all articulated that any revenue contributions stemming from DeepSeek are minimal or dependent on uncertain factors.

Anheng Information specifically noted that their AI product relying on the DeepSeek model is subject to unpredictable performance based on development timelines and industry application progress

Similarly, Yuke Tech has indicated that their comprehensive model adaptation work with DeepSeek remains uncertain regarding future performance contributionsAnkai Micro clarified that their smart recording pen product integrates DeepSeek's API but is not solely reliant on it for its operations.

Daily Interaction, which has enjoyed a striking rise in its stock prices, also addressed public speculation, stating they neither hold any stakes in DeepSeek or its partner, Huanfang Technology, nor have they provided any data resources to DeepSeekWhile the company had harnessed related versions of DeepSeek earlier, indicating a commitment to evaluating and incorporating the technology, the impacts of their new products rely heavily on broader industry conditions that remain unpredictable.

Moreover, various other companies echoed similar clarifications regarding their lack of business collaborations or equity interests in DeepSeek