China's AI promise lures top Asia fund away from Korea and Taiwan

China's AI promise lures top Asia fund away from Korea and Taiwan The AI frenzy that's gripped global equity markets for months is getting a fresh look from investors, as focus shifts to finding stocks that can drive the next leg of the sector's rally or at least withstand future selloffs. A top-performing Asian money manager is boosting exposure to artificial-intelligence stocks in China while retreating from those in South Korea and Taiwan, citing relatively better valuations and outlook. "Some of the names are still quite cheap in terms of valuation," said Kelly Chung, who helps oversee the Value Partners Asian Income Fund as well as the Asian Innovation Opportunities Fund. "The capital expenditure in China to invest in AI is still very low. There is still a big room for them to actually go up in terms of AI infrastructure investment" when compared to the U.S., she said in an interview.