Chinese tech stocks surged after government support for industry, with potential for significant growth

From Nasdaq: 2025-03-05 14:01:25

Chinese tech stocks surged as the country’s leader pledged support for the industry, boosting shares of Alibaba by 7.7%, JD.com by 5.7%, and Tencent Holdings by 5.3%. The National People’s Congress kicked off with promises to fund future industries like AI and quantum technology, driving a 2.7% rally in the MSCI China Index.

Chinese AI start-up DeepSeek’s R1 model challenged OpenAI’s model with impressive advancements, gaining praise from Nvidia’s CEO. Alibaba, JD, and Tencent are AI darlings in China, with stocks surging 73%, 41%, and 30% respectively. Recent collaborations and developments signal potential for further growth in the tech sector.

Tencent, Alibaba, and JD.com are trading at reasonable multiples of 16 times, 12 times, and 11 times trailing-12-month earnings, making them attractive investments with government support. Investors eye lucrative opportunities as the tech rally in China gains momentum, with potential for significant growth in the sector.

Investment analysts recommend seizing the opportunity to invest in potentially high-growth stocks before they surge. Past “Double Down” stock recommendations have yielded substantial returns, making it a prime opportunity for investors to capitalize on emerging trends and promising companies in the market.



Read more at Nasdaq: Why Alibaba, JD, and Other Chinese Tech Stocks Rallied Wednesday Morning