BlackRock Keeps Neutral on China Stocks as MSCI China Falls Over 10% Despite AI Hopes
Updated
Updated · CNBC · Jul 7
BlackRock Keeps Neutral on China Stocks as MSCI China Falls Over 10% Despite AI Hopes
1 articles · Updated · CNBC · Jul 7
Summary
BlackRock said China’s AI opportunity is a stock-picking trade rather than a broad market call, keeping a neutral stance on Chinese equities while remaining overweight U.S. stocks.
More than 20% gains in China’s ChiNext index have not lifted the wider market: MSCI China is down over 10% this year, while the Nasdaq and major U.S. indexes have risen more than 10%.
Beijing has pushed domestic AI development despite U.S. tech curbs, but BlackRock said slower growth, fierce competition and cheap open-source models make it unclear how Chinese AI providers will turn adoption into profits.
The firm sees better opportunities in scarce AI inputs and physical AI such as robotics, arguing many ultimate winners will still be in the U.S. because of its lead in chips, frontier models and capital markets.