China’s ChatGPT-fuelled stock frenzy cools amid reported regulatory ban
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Local apps and websites are said to have been ordered to terminate services that allow use of ChatGPT.
PHOTO: REUTERS
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SINGAPORE - The rally in Chinese artificial intelligence (AI) stocks is showing further signs of cooling amid media reports of the authorities banning access to OpenAI’s ChatGPT service.
Local apps and websites have been ordered to terminate services that allow the use of ChatGPT, according to reports in various Chinese and foreign publications over the past couple of days, some of which have since been deleted. OpenAI’s chatbot is not officially available in China
Shares of Beijing Haitian Ruisheng Science Technology dropped as much as 8.5 per cent on Thursday, paring their more than 200 per cent gain on the year. Hanwang Technology slid by as much as its 10 per cent daily limit after more than doubling in the past month. Beijing Deep Glint Technology continued to trim its big advance since saying earlier in February that it lacks the ability to offer ChatGPT-related services.
The reported ChatGPT ban tallies with Beijing’s longstanding mistrust of foreign technology, evident in its prohibition of sites such as Twitter and Facebook. It is also seen as offering a chance for local companies like Baidu, which are now racing to introduce AI-related technology that could be approved by the government. Baidu’s shares rose as much as 1.6 per cent in Hong Kong on Thursday.
“This will be very positive for Baidu,” said Mr Steven Leung, executive director at UOB Kay Hian (Hong Kong). More broadly, investors may be “somewhat wary of Chinese regulators putting more restrictions on the development of AI and ChatGPT-related technology”.
Some high-flying stocks have begun to wobble as Beijing makes the public aware of its displeasure with ChatGPT. Earlier in February, Chinese newspaper Securities Times warned investors in a front-page commentary not to blindly join the speculative rally.
“ChatGPT could provide a helping hand to the US government in its spread of disinformation and its manipulation of global narratives for its own geopolitical interests,” state-owned media outlet China Daily wrote on Monday in a post on Weibo, a local Twitter-like social media platform. BLOOMBERG
