Xingyin Fund fund manager Weng Zichen said recent debate around the so‑called
'Tao law' signals resilience in China’s tech supply chain under external
pressure and a shift from follower‑type development to independent innovation,
supporting the domestic tech cycle. He said market hopes that AI applications
would lead have been premature: since the start of the year compute demand from
training and inference has driven outperformance in AI hardware—GPUs, optical
modules and servers—which is translating into earnings and sustaining the rally.
Capital markets ultimately price around earnings and cyclical strength, he
added; hardware strength leading application take‑off is a reasonable industry
cadence, but investors should beware valuation bubbles.
