Gokul Laroia, Morgan Stanley's Asia chief and co-head of global equities, said at the Lujiazui Forum that China's extensive roster of AI companies could expand the country's market capitalization by an estimated $3 trillion to $4 trillion provided those firms obtain adequate financing.
"Outside of the United States, China is the only market that has an independent and holistic AI ecosystem that is evolving," Laroia said. "Every one of these companies needs capital, and every one of these companies has the potential to create a lot of value."
He added that the capital requirements for AI companies rise "dramatically" as their operations scale, underscoring a close link between fundraising and the ability of these businesses to realize their valuation potential.
The remarks arrive as Beijing seeks to direct greater sums toward its technology sector. According to reporting earlier this month, China plans to invest roughly 2 trillion yuan, or about $295 billion, over the next five years to construct data centers nationwide. The National Development and Reform Commission is reportedly among agencies working on a blueprint to connect these computing hubs into an interlinked network.
The data center initiative is tied to China’s new five-year policy blueprint, which lays out aims to accelerate AI adoption across the economy and to pursue leadership in technologies such as quantum computing and humanoid robots. State-owned operators, including China Mobile and China Telecom, are expected to run the majority of the new facilities and keep them interconnected.
The strategy, as described in the report, envisions using domestic suppliers for the bulk of related technology. It specifically cites an intent to rely on domestic firms, including Huawei Technologies, for at least 80% of technology such as AI chips - a move that would largely exclude non-domestic providers named in the report. The blueprint is said to be in early discussion stages and its specifics could change.
Concurrently, Chinese authorities indicated support for listings of startups active in "future industries" like quantum technology, nuclear fusion and brain-computer interfaces. The Shanghai Stock Exchange separately released rules designed to ease public offerings by large-model companies on the STAR Market, part of broader efforts to foster the domestic AI industry.
Those steps followed comments from China’s top securities regulator, who pledged to "actively embrace" a new phase of technological revolution and industrial upgrading.
Taken together, the statements from financial and regulatory officials and the planned infrastructure investment frame a concerted push to supply both capital and structural capacity to domestic AI development. But the outcome depends on companies' ability to access the necessary funding and on how policy details evolve as planning continues.