Investors are flocking to the Chinese market to find alternatives to U.S. stocks. DeepSeek’s AI breakthrough earlier this year proves China can Competing in the field of technology. Economists dare to bet that Beijing may eventually release more stimulus to revive reporting of domestic consumption. Thanks to the trade war between US President Donald Trump, Washington’s policy fluctuations are Promote investors Start diversifying their portfolio from the United States
This is a big shift from earlier arguments: Chinese companies are “not investable” due to concerns about policy uncertainty and China’s economic dullness.
Hong Kong’s benchmark Hang Seng Index has so far risen more than 20% this year, even as Trump threatens huge tariffs on Chinese imports. By comparison, the S&P 500 index grew by about 2%.
Investors used “Magnificent 7” – Microsoft, Apple, Amphabet, Amazon, Meta, Nvidia and Tesla as a shorthand for the best-performing stocks in the U.S. market. All seven companies reflect our strength in large-scale technologies and leverage major trends such as AI.
But what about China?
Investment bank Goldman Sachs highlighted 10 stocks that are best suited for growth in the Chinese market in a report released last week. Together they form what the bank calls “Outstanding 10” or “Dance 10” content. Unlike the Magnificent 7, these stocks cover not only technology and artificial intelligence, but also extend to retail and other consumer services.
According to Goldman Sachs, the stocks totaled $1.6 trillion in market value, while the MAG 7 shares were worth $19 trillion. The bank predicts that Prom 10’s earnings will grow by an average of 13% per year over the next two years.
The Balloon 10 “collectively embodies the themes of AI/technology development, self-sufficiency, “global”, service and new forms of consumption, and China’s improved shareholder returns,” Goldman Sachs wrote in its report. The bank also advises that the companies it chooses have more opportunities to expand and consolidate its fragmented position in the Chinese economy.
Who is at the dance 10?
The most valuable company on Prom 10 is Tencent, one of the world’s largest video game publishers and the operator of the ubiquitous WeChat messaging app. Tencent’s SuperApp is one of the few platforms with one billion users. With a value of approximately US$585 billion, Tencent is the second largest valuable company in Asia, second only to Chipmaker TSMC.
E-commerce giant Alibaba is also in the dance 10. The company’s stock has risen more than 35% so far this year due to the optimism of AI. Developers at home and abroad are embracing the company’s open source QWEN model, making Alibaba a AI Leader Among the country’s large tech companies.
Meituan, a Chinese food delivery giant, is another dance 10 shares. The company has 70% market share in the delivery sector and will expand to new markets such as Hong Kong, Saudi Arabia and Brazil. However, since Fierce competition From another e-commerce giant, JD.com.
Byd, the world’s largest electric car maker, and Xiaomi, the major Chinese smartphone brand that recently expanded to cars, also have a place in Goldman Sachs’ “Dance 10”. Thanks to its affordable and attractive design, Chinese electric vehicles are quickly winning the victory of Chinese and overseas customers. This helped boost stake in the two companies: Bide and Xiaomi grew by 45% and 60% respectively.
Midea Group is one of the major home appliance manufacturers in China, another Prom 10 stock. The company debuts Hong Kong Stock Exchange Last year, nearly $4 billion was raised.
Tencent, Alibaba, Metuan, Xiaomi, Bit and Midea are all here wealth The world’s No. 500, ranking the world’s largest company by revenue.
Balloon 10 is NetEase Games, the second-highest-grossing gaming company in China; Hengrui, the leading drugmaker; Trip.com, a travel booking platform; and Anta, the world’s third largest sportswear company, second only to Nike and Adidas.
