Catenaa, Friday, March 07, 2025- China top tech stocks have added $ 439 billion to the market so far in 2025, outperforming US magnificent seven stocks, a report from Bloomberg said on Friday.
The report said an equal-weighted basket of China’s seven tech heavyweights including Alibaba Group Holding Ltd. and Tencent Holdings Ltd. — dubbed the “7 titans” by Societe Generale SA — has gained more than 40% this year.
That compares with an about 10% drop in an index of the Magnificent Seven stocks, whose slump has also pushed the Nasdaq 100 Index to the brink of a correction.
Earlier this year, the Nasdaq gauge had notched yet another record, while Chinese stocks were still marred by years of regulatory crackdown and a tepid consumption recovery.
Then almost overnight in late January, DeepSeek upended the perception that it will take years — if ever — for China to catch up to the level of America’s AI supremacy.
The report said Chinese tech stocks have been on a tear since then, prompting even long-time skeptics to turn optimistic.
The rally received another push this week following Beijing’s plan to step up support for tech companies and a spate of new AI tools from the likes of Alibaba.
SocGen named the Chinese cohort, which also includes Xiaomi Corp., BYD Co., Semiconductor Manufacturing International Corp., JD.com Inc. and NetEase Inc., based on their market cap and growth trajectory.
The basket currently trades at 18 times forward earnings, a discount of more than 40% to the Magnificent Seven, according to a Feb. 28 note by strategists led by Frank Benzimra.
The Hang Seng Tech Index gained more than 1% on Friday, taking this week’s advance to about 10%. The index is trading its highest since late 2021.
