Editor's note: The artificial intelligence (AI) boom is sweeping the globe, with governments and leading tech companies in various countries allocating resources to focus on AI initiatives. AI-related stocks are also reaching new heights in the capital markets.
【Anchor】Hello everyone, welcome to DDN Business Insider. I am Yunfei Zhang. This year, a new wave of artificial intelligence (AI) has swept the globe. Why are governments and leading tech companies around the world ramping up resources and focusing on AI initiatives? Why are AI-related stocks repeatedly hitting record highs in the capital market? To discuss these topics, we have invited renowned economist Song Qinghui, co-founder of EqualOcean and Deputy Secretary-General of the China Industrial Development Promotion Association (CIDPA), Wang Bin, along with two guests from Hong Kong—Legislative Council member Ng Kit-chong and investment strategist of East Asia Securities Ng Wing-keung—to provide their insights and analysis.
Hello, everyone. When we mention the rise of the current AI wave, many may recall the emergence of DeepSeek at the end of last year. However, over the past half-year, the persistence of this AI boom is largely due to concerted efforts by governments and leading tech firms. Mr. Song, what do you think is the fundamental reason for different stakeholders to focus on the AI sector simultaneously?
【Song】Currently, governments and leading enterprises around the world are focusing on the AI sector because they recognize that AI is no longer just a technology; it is the core driving force for future economic growth, social development, and national competitiveness. Especially in the context of great power competition, AI has become a key domain for national competitiveness, following nuclear weapons and space exploration. In the future, whoever masters the high ground of AI technology will be able to take the initiative in the international landscape. Therefore, governments are elevating AI to a national strategic level.
【Anchor】The last time we saw such widespread attention and an explosion in a sector was with the internet, which also emphasized the concept of "Internet Plus." What are the similarities and differences in the logic and impact of these two explosions?
【Song】The explosion of the current AI sector shares many similarities with the previous internet sector explosion, but there are significant differences. For example, in terms of impact scope, the internet sector primarily affected the consumption and information fields, as it changed people's consumption habits. In contrast, the current AI sector explosion has a broader impact, not only changing consumption but also profoundly transforming production, research, healthcare, and many other areas.
【Anchor】In this wave of AI enthusiasm, some viewpoints suggest that China's AI industry is transitioning from the "technological layout" phase to the early stage of "industrial explosion." This assessment is based on the fact that the term "Artificial Intelligence Plus" was mentioned multiple times during this year's National People's Congress, and it is expected to become a core component of new productive forces during the 14th Five-Year Plan period. Mr. Song, how do you view the changes in the strategic positioning of AI at the policy level?
【Song】The mention of "Artificial Intelligence Plus" during the two sessions, followed by the introduction of specialized action plans and its positioning as the core of new productive forces during the 14th Five-Year Plan, signifies that China's AI industry is moving from the technological layout stage to the early stage of industrial explosion. In my view, this change means that AI development is no longer solely the responsibility of research institutions; it has become a key driver for national economic and social development. This provides strong policy support and resources guarantees for the application of AI technology across various industries.
【Anchor】Mr. Wang, how do you view the changes in the strategic positioning of AI at the policy level?
【Wang】China's AI industry is indeed transitioning from the technical layout stage to the early stage of industrial explosion. This shift is reflected not only in policy statements but also in multiple dimensions such as technological maturity, industrial demand, and market penetration. The next 5 to 10 years will be a critical strategic opportunity period for global AI competition. Only with top - level policy support can we ensure that AI truly unleashes its transformative power.
【Ng】In line with national development strategies, Hong Kong's new policy report also emphasizes AI, particularly focusing on "AI + Governance." In fact, the mainland is ahead in areas such as smart city construction. Mr. Wang, what experiences from the mainland do you think Hong Kong can learn from in this regard?
【Wang】The mainland has accumulated rich experience in smart city and digital governance construction, mainly through top - down planning, deep application scenarios, data integration capabilities, and extensive citizen participation. These aspects can provide valuable references for Hong Kong.
【Anchor】Speaking of Hong Kong's new policy report, I would like to ask Legislative Council member Ng Kit - chong. Mr. Ng, what aspects of the mainland's AI governance applications do you think are worth Hong Kong's reference in the promotion of "AI + Governance"?
【Ng】One key aspect is the standards. The mainland has established its AI governance application standards relatively early, in addition to the technological drive. Since AI is not 100% accurate and can make mistakes, havingsuch guidance would make civil servants more confident and secure in using AI. Hong Kong can also refer to this by introducing internal guidelines as soon as possible.
【Anchor】Well, thereis also data showing that the adoption rate of AI in Hong Kong's financial industry is relatively high. In terms of "AI + Finance," how do you think Hong Kong can make breakthroughs?
【Ng】First, I am confident that Hong Kong can establish itself as a digital assets hub for the Asia - Pacific region. The integration of blockchain applications with AI is crucial. Hong Kong should be more proactive in developing DeFi (Decentralized Finance), utilizing AI along with smart contract reviews to reduce associated risks, thereby enhancing the credibility and stability of the entire digital asset trading environment. This is one area where Hong Kong can do more.
Secondly, green finance is another area where Hong Kong is performing well, having issued two popular green bonds. AI can help enterprises or governments analyze data related to environmental, social, and governance (ESG) factors, thus increasing investor confidence and ensuring that funds are effectively channeled into relevant green projects. This is vital for Hong Kong to establish itself as an international green finance center.
Lastly, in terms of regulation, AI can assist in reviewing various document contents. Hong Kong has a reputation for balancing regulation and development internationally, and I believe that in the future, more AI can be used to assist regulatory bodies in conducting more precise reviews, thereby addressing risks early. We should also demonstrate more use of RegTech (regulatory technology) solutions to further solidify and enhance Hong Kong's status as a financial technology and financial center.
【Anchor】Ultimately, whether it's the government or leading tech companies, the focus on AI is not just about the technology itself, but also about the content behind "AI+"—how AI integrates with various fields to bring about transformative changes. Mr. Song, in your observation, what areas are most likely to achieve breakthroughs first? How will the approaches differ across countries?
【Song】From my observation, the area most likely to achieve breakthroughs first are AI + vertical industries. For example, AI + office applications will fundamentally change the current forms of office software. AI + healthcare will accelerate drug development and assist in disease diagnosis. AI + manufacturing will lead to smarter production lines and supply chain management, among others. In my view, the breakthrough directions may vary significantly between countries and regions. For instance, thanks to strong technological accumulation, capital advantages, and an open innovation ecosystem, the United States will likely maintain a lead in general large models, AI chips, and foundational research. Mainland China's advantages lie in vast amounts of data, a large market, and a complete industrial chain. Therefore, it may achieve breakthroughs in AI + manufacturing, AI + governance, and applications in the consumer internet. Hong Kong's strengths are its position as an international financial center and its connectivity with the world. Thus, I believe Hong Kong may find breakthrough opportunities in AI + finance and AI + legal services. Additionally, as a bridge for mainland AI technologies to reach the world, Hong Kong can attract global AI talent and capital.
【Anchor】Mr. Ng, regarding the stock market, which specific sectors do you think are worth paying attention to under the influence of AI?
【Ng】For example, in the consumer sector, we have already seen some AI applications implemented within the industry. Particularly in e-commerce platforms, we observe features like virtual makeup trials and virtual fitting rooms. These applications use AI technology to enhance consumer experiences and increase their willingness to spend. Besides the consumer sector, we also see advancements in the transportation industry, such as autonomous driving, which is currently undergoing trials in various regions and even operating in some areas. We believe that further applications of AI in transportation will expand significantly. Other sectors include healthcare and creative industries; for instance, with the emergence of generative AI, we are witnessing AI being used in creative processes—such as painting, scriptwriting, and filmmaking. These developments are already happening, indicating that these industries will adopt AI applications more rapidly than others.
【Anchor】Lastly, do you consider the AI-related sectors to be high-risk? Do you have any advice for investors?
【Ng】Indeed, over the past year or two, whether in the U.S. stock market, mainland China, or Hong Kong, AI-related themes have been extremely popular, with stocks in this space seeing remarkable increases. However, while some stocks have seen strong gains, we also notice that their performance has consistently exceeded market expectations, showing rapid growth. Especially when companies deliver strong results over multiple consecutive quarters rather than just one or two impressive quarters, we see that their stock prices are rising in tandem with their earnings. Thus, their valuations are not particularly high at this point.
That said, we must remain cautious. The AI sector is vast, and some AI-related stocks have lower visibility in terms of profitability and may even have no earnings at all. These stocks may be overvalued, with potential bubble risks. Investors should be careful in these cases.
【Anchor】OK, thank you. That's all for this episode. Remember to follow us on YouTube or download our APP. I'm Yunfei Zhang, thanks for watching, and see you next time.
Anchor: Laura Cheung | Edited: Kelly Yang, Laura Cheung, Rachel Liu | Translate: Kato Ip | Proofread: Chris Liu
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