Investing.com -- Global hedge funds are continuing to offload China equities for the fourth consecutive week, according to a note from Goldman Sachs.

This trend indicates a diminishing enthusiasm for Chinese tech stocks, which had previously been invigorated by the emergence of low-cost artificial intelligence startup, DeepSeek.

In the week to March 6, funds increased their short bets and reduced their long positions. Goldman Sachs’ prime brokerage has noted that hedge funds have "reversed course" since mid-February.

Prior to this shift, China had seen the largest purchases by hedge fund clients globally, a trend largely driven by the rise of DeepSeek.

However, the year-to-date flow is now approximately even, according to estimates by Goldman Sachs. This suggests that the previous surge in interest and investment in Chinese tech stocks, sparked by DeepSeek, has now leveled off.

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