Terrific Ten: Chinese Tech Stocks Surge, Outpacing the Magnificent 7
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The Chinese stock market is capturing the attention of global investors after the Chinese startup “DeepSeek” launched its new AI model, “DeepSeek V3,” which is as or more powerful than leading US AI systems but at a fraction of the cost. This has significantly boosted confidence in the Chinese technology industry. Many investors have begun to gradually buy into Chinese tech stocks, as they believe that the years-long government crackdown on private enterprises, especially tech companies, may be nearing its end. This shift has pushed the Hang Seng Tech Index to a three-year high and is a positive factor that has brought Chinese stocks back into the spotlight for long-term investors.
Many Chinese tech companies have shown strong growth and outperformed the US Magnificent Seven since the middle of the year. The group of stocks dubbed the “Terrific Ten” consists of Chinese industry leaders from various sectors, including:
📦 E-commerce: Alibaba, JD.com
🚗 Automotive: Geely, BYD
📱 Technology and Electronics: Xiaomi
🌐 Internet and Online Gaming: Tencent, Netease
🔍 Search Engine: Baidu
🍽️ Food Delivery and Lifestyle Services: Meituan
🔧 Chip Manufacturing: SMIC
Chinese large-cap tech companies are expected to show continued strong growth, with an estimated average revenue increase of more than 7% in 2025. This growth is driven by the Chinese government’s economic stimulus measures and the expansion of the domestic AI industry.
Leading Chinese technology companies like Xiaomi, JD.com, and Meituan have all revised their profit forecasts upward for the coming year. This reflects the recovery and growth trend of China’s technology industry, particularly in business sectors related to AI, chipsets, and electric vehicles.
The Chinese stock market is back! Chinese tech stocks are becoming a new investment opportunity that shouldn’t be overlooked.
