DeepSeek triggered a wild, baseless rally for some Chinese stocks

DeepSeek caused stock frenzy with false ties, affecting Chinese and U.S. markets.

: DeepSeek, a Chinese AI company, triggered a sell-off in U.S. stocks and baseless speculation in Chinese markets. Nvidia's shares fell nearly 20%. Rumored connections of DeepSeek raised shares of certain Chinese companies, like Huajin Capital and Zhejiang Orient, by 10%. However, there is no valid evidence of actual investments or partnerships with DeepSeek.

Chinese AI company DeepSeek sparked significant market movements by inciting a nearly 20% decrease in Nvidia's stock and raising false speculations in China. Shares of companies like Huajin Capital and Zhejiang Orient increased by 10%, based on rumored associations with DeepSeek that lacked substantiation.

Chinese lists, claiming ties to DeepSeek, went viral but were unverified, leading to public misperception. Sublime China Information, suspected of AI collaborations with DeepSeek, saw their shares rise by 20%. Yet, they refuted any cooperation, highlighting the baseless nature of these rumors.

DeepSeek's founder, Liang Wenfeng, remains the beneficial owner with no VC investments revealed and no evident links between VCs and DeepSeek in Chinese records. The company, funded by High-Flyer, has not announced public fundraising plans, emphasizing their focus on research rather than commercial investment at this time.

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