Investor sentiment towards mainland Chinese stocks has been negatively impacted by U.S. tariffs, as evidenced by the contrasting performance of mainland stocks and those listed in Hong Kong. Hong Kong-listed tech giants are experiencing a rally, driven by strong buying from mainland investors and the influence of DeepSeek, a new player in the technology sector. This rally occurs alongside a soft economic recovery in mainland China, which has limited the performance of onshore shares. Analysts suggest that the emergence of DeepSeek represents a significant milestone in China's ambition to lead in technology, highlighting the ongoing shifts in investor confidence and market dynamics.