Long-term foreign equity investors reassess their China bearishness

TOKYO/NEW YORK -- Long-term foreign stock investors are reconsidering, with a dose of caution, whether to give the Chinese market a second glance ever since the AI chatbot DeepSeek emerged as a surprise challenger to U.S. leaders, according to lawyers and financial experts.

A number of financial institutions and law firms have downsized or exited from Hong Kong and mainland China over the past few years in the face of increasing geopolitical tensions with the U.S. and Chinese authorities tightening their grip over the territory and businesses. China's economic woes, ranging from a crisis in the property market to sluggish domestic consumption, have made the country even less attractive as an investment destination.