Chinese AI startup DeepSeek is preparing to raise approximately $7.4 billion (50 billion yuan) in its first external funding round, potentially valuing the company at $59 billion. Major investors include Tencent (10 billion yuan), CATL (5 billion yuan), NetEase, JD.com, and state-backed AI funds. Founder Liang Wenfeng is contributing 20 billion yuan of personal capital. The funding round could close within weeks.

CoreView Capital Management Ltd sold 550,541 shares of KE Holdings (BEKE) worth approximately $9.45 million in May 2026. Despite the reduction, BEKE remained the fund's fourth-largest position at $38.47 million. KE Holdings reported mixed Q1 results with revenue down 19% year-over-year but net income up 47%, as the company shifts toward efficiency-driven growth. The stock has underperformed the S&P 500, down 10% over the past year.

ByteDance is offering stock options tied to its Seed AI division to employees at $13 per unit to retain talent amid intense competition from rivals like Tencent. The stock has surged nearly 30% since last year, but the strategy risks internal division and reduced staff mobility. The move reflects a broader tech industry talent war, with companies like OpenAI, Meta, and Microsoft competing aggressively for AI researchers through substantial compensation packages.

China banned Nvidia's RTX 5090D V2 chip, signaling a shift toward reducing dependency on U.S. semiconductors and favoring domestic alternatives. While the U.S. approved H200 sales to Chinese tech companies, no chips have been delivered due to undisclosed conditions from Beijing. Nvidia's China revenue has fallen to 5% of total sales, and the ban suggests the company's export-compliant strategy has failed at both ends—Washington restricts high-end chips while Beijing blocks lower-end alternatives.

The S&P 500 closed at a record high on Monday but Polymarket traders predict a weaker opening on Tuesday as investors await April's Consumer Price Index report, which is expected to show the highest inflation print since September 2023. Geopolitical tensions with Iran and Middle East developments are also weighing on sentiment, though technology stocks remain resilient with strong earnings and AI enthusiasm supporting the market.

ByteDance's valuation has reached $600 billion, making it China's second most valuable internet company. The valuation reflects investor confidence in its three main pillars: Douyin (domestic e-commerce and services anchor), TikTok (global growth engine despite geopolitical risks), and AI through Doubao (emerging growth driver). The company is investing heavily in AI infrastructure and shows no urgency for an IPO, though smaller subsidiaries could potentially be listed separately.

Alibaba shares declined after reporting modest 2% revenue growth and a sharp 57% drop in adjusted EBITA for its December quarter. While the company's AI chatbot Qwen reached 300 million monthly users and cloud intelligence revenue grew 36%, its e-commerce division faced pressure from a price war with competitors, with core e-commerce business lines remaining flat.

PsiBot (Lingchu Intelligence) raised 2 billion yuan ($280M) in angel and Pre-A funding, reflecting China's significant investment in embodied AI. Rather than focusing on flashy robots, PsiBot is positioning itself as a 'small full-stack' provider of practical robotics solutions, data collection systems, and AI training infrastructure for logistics and manipulation tasks. The funding comes amid China's emphasis on AI and robotics deployment outlined in its 15th Five Year Plan, and reflects broader market growth with global humanoid-robot shipments reaching 18,000 units in 2025.

A U.S. congressional committee has sent letters to three small investment banks (D. Boral Capital, Dominari Securities, and Revere Securities) investigating their role in underwriting suspicious Chinese IPOs that allegedly engaged in 'pump-and-dump' schemes, defrauding American investors of $16 billion since 2023. The move reflects a broader U.S. campaign to eliminate fraudulent Chinese listings from Wall Street, with Chinese IPO fundraising dropping significantly to $1.12 billion in 2024.

Multiple China-focused stocks and emerging market ETFs have fallen into deeply oversold territory with exceptionally low RSI readings, potentially setting up for sharp rebounds if risk sentiment improves. The oversold list is dominated by Chinese internet and tech names alongside broader Asian and emerging market exposures, though investors are cautioned that low RSI alone is not a reliable trading signal.

Fourth-quarter earnings season continues this week with major reports from retailers, tech firms, and software giants. Key companies reporting include AST SpaceMobile (Monday), Target and CrowdStrike (Tuesday), Broadcom (Wednesday), and JD.com (Thursday). Investors will focus on AI semiconductor revenue, discretionary spending recovery, and guidance for future growth.

Dingdong agreed to sell its domestic grocery delivery operations to Meituan for $717 million, highlighting intense price wars in China's instant commerce sector. Meanwhile, India blocked a Chinese private equity firm's investment in an Italian company with Indian operations, signaling rising geopolitical protectionism in cross-border M&A deals.