China’s stock market has surged in 2025, driven by breakthroughs in artificial intelligence (AI), with DeepSeek leading the charge. Despite semiconductor restrictions, DeepSeek’s ability to develop an efficient yet powerful AI model that rivals OpenAI is strong evidence that China’s technological capabilities are much closer to those of the U.S. than previously believed. Adding to the momentum, a recent meeting between President Xi and China’s top tech leaders provided another boost to tech stocks. This meeting signaled clear government support for the private tech sector, dispelling fears of regulatory crackdowns. It suggests that the worst is likely to be over and that the government is now working collaboratively with the industry to build an innovative and technologically advanced economy. While Chinese tech stocks have dominated headlines, dividend-paying stocks have been the true stalwarts of the market. Over the past several years, China stocks as a whole (measured by MSCI China Index) delivered negative return while dividend stocks (relating to CSI 300 Dividend Index) remained resilient....